Realty Income Corp

Realty Income delivered a mixed second quarter for 2024, posting earnings per share of $0.29 against a consensus estimate of $0.36, a miss of 19.44%, even as revenue climbed 31.4% year-over-year to $1.34 billion, well ahead of the $1.25 billion analysts had expected. The top-line strength was largely attributable to the January 2024 close of the Spirit Realty Capital merger, which meaningfully expanded the company's property portfolio and drove the bulk of that revenue surge. Elevated provisions for impairment, reaching $96.50 million compared to $29.80 million a year ago, weighed on the bottom line as management actively optimized the enlarged portfolio. On the operational side, portfolio occupancy improved to 98.8% and AFFO per share grew 6.0% year-over-year to $1.06, offering a more favorable picture of underlying performance. Looking ahead, Realty Income maintained its full-year AFFO per share guidance of $4.15 to $4.21, while trimming its net income per share outlook to $1.21 to $1.30, reflecting higher depreciation and impairment charges tied to ongoing integration work.