Realty Income (O) Tops Q2 EPS by 2c, Revenues Beat; Boosts FFO Guidance

Realty Income (NYSE: O) reported Q2 EPS of $0.34, $0.02 better than the analyst estimate of $0.32. Revenue for the quarter came in at $328.89 million versus the consensus estimate of $327.43 million.

"We achieved another quarter of positive operating results and remain optimistic about our business prospects for the future," said John. P. Case, Realty Income\'s Chief Executive Officer. "During the second quarter, we invested approximately $347 million in property acquisitions, bringing us to nearly $860 million in high-quality acquisitions completed during the first half of the year. We raised just over $300 million in equity during the quarter to fund our investment activities. Our portfolio continues to perform well, as we ended the quarter with high occupancy levels and healthy re-leasing spreads."

"Based on the continued strength of our business, we are increasing our 2018 acquisitions guidance to approximately $1.75 billion from our previous guidance range of $1.0 billion to $1.5 billion. We are also raising our 2018 AFFO per share guidance from our previous estimate of $3.14 - $3.20 to $3.16 - $3.21, representing annual growth of 3% - 5%."

2018 Earnings Guidance

We estimate FFO per share for 2018 of $3.13 to $3.20. FFO per share for 2018 is based on a net income per share range of $1.14 to $1.21, plus estimated real estate depreciation and impairments of $2.06 per share, and reduced by potential estimated gains on sales of investment properties of $0.07 per share (in accordance with NAREIT\'s definition of FFO).

We estimate AFFO per share for 2018 of $3.16 to $3.21. AFFO further adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of Realty Income\'s ongoing operating performance.

For earnings history and earnings-related data on Realty Income (O) click here.

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