Realty Income

Last updated
Realty Income
Company type Public company
NYSE:  O
S&P 500 Index component
Industry Real estate investment trust
Founded1969;55 years ago (1969)
FounderWilliam E. Clark, Jr.
Evelyn J. Clark
Headquarters San Diego, California
Key people
 Michael D. McKee, Chairman
Sumit Roy, CEO
Jonathan Pong, CFO
ProductsFree-standing, single-tenant commercial properties
RevenueIncrease2.svg $3.300 million (2022)
Increase2.svg $872.3 million (2023)
Total assets Increase2.svg $57.8 billion (2023)
Total equity Increase2.svg $33.1 billion (2023)
Number of employees
418 (2023)
Website realtyincome.com
Footnotes /references
[1]

Realty Income Corporation is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, the United Kingdom, and six other countries in Europe. These properties are subject to NNN Leases. The company is organized in Maryland with its headquarters in San Diego, California.

Contents

The company is one of a few real estate investment trusts that pays dividends monthly, rather than quarterly, and has registered a trademark for the phrase "The Monthly Dividend Company". [2]

Investments

As of June 30, 2024, the company owned 15,450 properties totaling approximately 335.3 million leasable square feet. [1] [3]

The company's largest tenants are as follows: [1] [3]

RankTenant % of Total Portfolio Annualized Contractual Rent
1 Dollar General 3.4%
2 Walgreens 3.3%
3 Dollar Tree / Family Dollar 3.1%
4 7-Eleven 2.6%
5 EG Group 2.2%
6 Wynn Resorts 2.1%
7 Life Time Fitness 2.0%
8 FedEx 2.0%
9 BJ's Wholesale Club 1.6%
10 (B&Q) Kingfisher 1.6%

History

Realty Income Corporation was founded in 1969 by William E. Clark and Evelyn J. Clark. [4] Its first acquisition was a Taco Bell restaurant in early 1970. [4]

The company used cash to purchase land needed for stores that required real estate to run, and then leased the property to the stores long term. [5]

In 1994, the company became a public company via an initial public offering. [1]

In 1997, William E. Clark, Jr., retired as CEO and was succeeded by Thomas A. Lewis. In 2013, John P. Case succeeded Mr. Lewis as CEO of the company. [6]

In 2009, Clark retired as chairman. [7]

In 2013, the company acquired American Realty Capital Trust, founded by Nicholas Schorsch, in a $2.95 billion transaction. [8] [9]

In 2015, the company was added to the S&P 500 [10] and the S&P High Yield Dividend Aristocrats index. [11]

In 2018, Sumit Roy became the company's CEO. [12]

In 2019, the company completed a sale-leaseback transaction for 12 properties of the United Kingdom supermarket chain Sainsbury's. This was the company's first purchase of property outside the United States. [13]

On November 1, 2021, the company acquired VEREIT. [14]

On December 1, 2022, the company completed a $1.7 billion sale-leaseback of Encore Boston Harbor. [15]

On August 2, 2023, the company announced a $950 million investment in Bellagio Las Vegas. [16]

On January 23, 2024, the company completed the $9.3 billion acquisition of Spirit Realty Capital. [17] [18]

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References

  1. 1 2 3 4 "Realty Income Corporation 2023 Form 10-Q Annual Report". U.S. Securities and Exchange Commission.
  2. ↑ "Registered trademark for The Monthly Dividend Company". United States Patent and Trademark Office.
  3. 1 2 "Inline XBRL Viewer". www.sec.gov. Retrieved 2024-10-04.
  4. 1 2 Frankel, Matthew (June 3, 2015). "Realty Income Corporation: How a Taco Bell Evolved Into a $10 Billion REIT". The Motley Fool .
  5. ↑ WOLFF, ERIC (December 8, 2010). "REAL ESTATE: Local company ready to reap the bubble's remains". The San Diego Union-Tribune .
  6. ↑ "Realty Income Names John P. Case to Succeed Tom A. Lewis As Chief Executive Officer" (Press release). PR Newswire. September 3, 2013.
  7. ↑ "William E. Clark to Retire as Realty Income Chairman" (Press release). Business Wire. September 3, 2013.
  8. ↑ "Realty Income To Acquire American Realty Capital Trust In $2.95 Billion Transaction" (Press release). PR Newswire. September 6, 2012.
  9. ↑ "Realty Income Closes American Realty Capital Trust Acquisition" (Press release). Business Wire. January 22, 2013.
  10. ↑ "Realty Income Set to Join S&P 500; Windstream, Douglas Emmett to Join the S&P MidCap 400; Gentherm, Echo Global Logistics to Join the S&P SmallCap 600" (Press release). PR Newswire. March 27, 2015.
  11. ↑ "Realty Income is Reaping Triple-Net Lease Rewards".
  12. ↑ "The Briefcase: Walmart campus off Kester Mill Road sells for $20.8M". Winston-Salem Journal . January 23, 2018.
  13. ↑ Thomas, Brad (April 23, 2019). "The Monthly Dividend Company Goes Global". Forbes .
  14. ↑ "Realty Income Closes Merger With VEREIT" (Press release). PR Newswire. November 1, 2021.
  15. ↑ "Realty Income Completes $1.7 Billion Sale-Leaseback of Encore Boston Harbor". Realty Income. Retrieved 2024-10-04.
  16. ↑ "Realty Income Announces $950 Million Investment in Bellagio Las Vegas at $5.1 Billion Valuation". Realty Income. Retrieved 2024-10-04.
  17. ↑ "Realty Income to Acquire Spirit Realty Capital in $9.3 Billion Transaction". Realty Income. Retrieved 2024-10-04.
  18. ↑ "Realty Income Closes Merger with Spirit Realty Capital". Realty Income. Retrieved 2024-10-04.

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