REALTY INCOME CORP (O)

Realty Income Corporation, known as "The Monthly Dividend Company," is a self-administered REIT founded in 1969 and listed on the NYSE (ticker: O) since 1994, and is a member of the S&P 500 and S&P 500 Dividend Aristocrats index. The company acquires and manages freestanding, single- and multi-client commercial properties leased to commercial clients under long-term net lease agreements, generating rental revenue used to fund monthly dividends that have increased consistently for over 25 years. Its financial results reflect the November 2021 merger with VEREIT, Inc. As of December 31, 2022, Realty Income owned or held interests in 12,237 properties across all 50 U.S. states, Puerto Rico, the U.K., Spain, and Italy, encompassing approximately 236.8 million square feet of leasable space, with a 99.0% occupancy rate and clients across 84 industries.

The portfolio had a weighted average remaining lease term of about 9.5 years, and 98.2% of properties were single-client. During 2022, the company acquired 1,084 properties for approximately $8.2 billion at a 6.0% initial cash lease yield, with clients concentrated in retail (71.4%), gaming (19.1%), and industrial (6.5%) sectors; about 23% of new rental revenue came from investment-grade clients. The company raised $4.6 billion in equity through its ATM program in 2022 and executed multiple debt offerings, including USD and GBP senior notes, cross-currency swaps, and an expanded $4.25 billion revolving credit facility, alongside expanded commercial paper programs and a new $1.0 billion multicurrency Term Loan in January 2023.

Realty Income also divested seven industrial joint-venture properties for $905.0 million gross proceeds during the year. The company reported strong 2022 financial results, with total revenue of $3.34 billion (up 60.7% year-over-year), net income available to common stockholders of $869.4 million, and AFFO per share of $3.92. It continues to monitor client credit exposure, notably maintaining $35.6 million in cumulative reserves related to Cineworld Group plc (parent of Regal Cinemas), which filed for Chapter 11 in September 2022, while noting that COVID-19 pandemic effects on rent collection have largely normalized to pre-pandemic levels.

As of January 2023, the company had 395 employees and continued its 54-year record of paying monthly dividends, having raised its dividend 119 times since its 1994 NYSE listing.