Realty Income lifts lower end of 2024 FFO forecast on positive investment view

Realty Income

04/11/2024 22:47

Nov 4 (Reuters) - Realty Income Corp  O.N  raised the
lower end of its annual funds from operations (FFO) forecast on
Monday, citing a positive investment environment.
    The rising competition among retailers is fueling a surge in
demand for commercial space, benefiting real estate investment
trusts (REITs) such as Realty Income, which counts Walgreens
 WBA.O  and Dollar General  DG.N  among its customers.
    "Supported by improvements in the investment environment and
solid operating results, we see a robust pipeline of
opportunities," said CEO Sumit Roy. 
    The REIT now expects its full-year adjusted FFO to range
between $4.17 and $4.21 per share, up from its previous estimate
of $4.15 to $4.21 per share.
    The company also lifted its full-year investment volume to
an estimated $3.5 billion, up from its previous figure of $3
billion.
    Realty Income, which recently closed a $9.3 billion merger
with Spirit Realty Capital, owns over 13,000 properties in the
United States and leases them to clients across the retail,
restaurants and gaming industries. 
    The company's same-store rental revenues for the quarter
ended September 30 increased by 0.2% to $1 billion, compared
with the same period last year.
    Total quarterly revenue rose 28% to $1.33 billion, beating
analysts' average expectation of $1.28 billion, according to
data compiled by LSEG.
    The San Diego, California-based company posted an adjusted
FFO of $1.05 per share for the third quarter, falling short of
analysts' estimates of $1.07 per share.        

 (Reporting by Utkarsh Shetti and Aatreyee Dasgupta in
Bengaluru; Editing by Mohammed Safi Shamsi)
 ((UtkarshUmesh.Shetti@thomsonreuters.com;))