Realty Income Posts Mixed Q2 Results

Real estate investment trust Realty Income Corporation (O) has reported mixed results for the second quarter of 2021 and revised its guidance for FY2021 net income per share.

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The company reported that its net income per share of $0.33 grew 6.5% year-over-year but fell short of analysts’ expectations of $0.37 per share.

It reported revenues of $464.3 million, up 12% from the same quarter last year. Also, the figure surpassed the Street’s expectations of $442 million. Notably, the company collected 99.4% of contractual rent across its total portfolio, inclusive of 98.9% collected from theater clients.

As of June 30, 2021, the receivables outstanding across the portfolio were $327.9 million, net of $60 million of reserves, including $195.9 million of straight-line rent receivable, net of $8.6 million of reserves. (See Realty Income stock charts on TipRanks)

Moreover, at the end of Q2, Realty Income’s portfolio consisted of 6,761 properties located in all 50 U.S. states, Puerto Rico and the U.K., and leased to about 630 clients doing business in 58 separate industries.

The company expects to deliver net income per share in the range of $1.32 to $1.41, compared to $1.19 to $1.27 previously guided. Also, same-store rent is expected to grow at 1.5%-2%, up from 0.5%-1.0%.

Last month, Jefferies analyst Jonathan Petersen maintained a Buy rating on the stock and raised the price target to $80 from $78. The new price target implies 14.3% upside potential from current levels.

Overall, the stock has a Moderate Buy consensus based on 5 Buys and 2 Holds. The average Realty Income price target of $76.21 implies upside potential of 8.7%.

Realty Income Corporation scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.