Realty Income's Q4 AFFO Miss Estimates, Revenues Rise Y/Y

Realty Income Corporation’s O fourth-quarter 2024 adjusted funds from operations (AFFO) per share of $1.05 missed the Zacks Consensus Estimate of $1.06. The reported figure compared favorably with the prior-year quarter’s AFFO of $1.01 per share.See the Zacks Earnings Calendar to stay ahead of market-making news.Results display lower-than-anticipated AFFO per share. However, year-over-year growth in the top-line was witnessed. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. The portfolio occupancy increased marginally from the prior-year quarter.Total revenues were $1.34 billion, which missed the Zacks Consensus Estimate of $1.35 billion. However, the top line rose 24.5% year over year.In 2024, Realty Income reported AFFO per share of $4.19, which met the Zacks Consensus Estimate. The figure compared favorably with the year-ago number of $4.00. Revenues of $5.27 billion jumped 29.2% year over year but lagged the consensus mark of $5.29 billion.O’s Quarter in DetailIn the fourth quarter, same-store rental revenues of $992.8 million from 13,397 properties under lease witnessed a rise of 0.8% from the prior-year period.The portfolio occupancy of 98.7% as of Dec. 31, 2024, remained unchanged sequentially and gained 10 basis points year over year. In the reported quarter, the company achieved a rent recapture rate of 107.4% on re-leasing properties.In the reported quarter, O invested $1.72 billion in 308 properties and properties under development or expansion.O’s Balance SheetRealty Income exited the fourth quarter of 2024 with $3.7 billion of liquidity. This comprised cash and cash equivalents of $445 million, unsettled At-The-Market forward equity of $91.8 million and $3.1 billion of availability under its unsecured revolving credit facility.Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.2025 Guidance for Realty IncomeManagement expects its 2025 AFFO per share to be in the band of $4.22-$4.28. The Zacks Consensus Estimate is pegged at $4.32, which is above the company’s guided range.Full-year projections assume same-store rent growth of approximately 1% and occupancy of more than 98%. O now expects a full-year investment volume of approximately $4 billion.Realty Income currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Realty Income Corporation Price, Consensus and EPS Surprise Realty Income Corporation price-consensus-eps-surprise-chart | Realty Income Corporation Quote Performance of Other Retail REITsSimon Property Group, Inc.’s SPG fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. This compares with FFO of $3.69 per share a year ago.Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.Federal Realty Investment Trust’s FRT fourth-quarter 2024 FFO per share of $1.73 met the Zacks Consensus Estimate. This also marked a rise of 5.5% from the year-ago quarter’s tally of $1.64.Results reflected healthy leasing activity and significant occupancy gains at its properties. FRT has also provided its initial guidance for 2025.Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis Report Realty Income Corporation (O): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks