San Diego Business Journal

Realty Income Posts Record Revenue in Third Quarter

By Lou Hirsh Friday, October 28, 2011

Escondido-based Realty Income Corp., a real estate trust that invests in retail and related commercial properties, announced Oct. 27 that its latest third-quarter revenue rose 23.6 percent and funds from operations increased 32.6 percent from the same period of 2010.

A company statement said revenue for the period ending Sept. 30 reached a record $107.3 million. Funds from operations, an industry metric commonly used to gauge the performance of real estate portfolios, totaled $63.4 million.

CEO Tom A. Lewis said the company saw same-store rents on 2,159 of its leased properties rise 1.8 percent from the year-ago quarter. He said the company invested more than $462 million in 89 new properties during the third quarter.

As of Sept. 30, Realty Income’s portfolio of free-standing, single-tenant properties consisted of 2,600 properties in 49 states, leased to 134 retail chains and other commercial enterprises doing business in 38 industries, the statement said.

Also during the third quarter, Realty Income raised approximately $203.6 million from a common stock offering of 6.3 million shares. The company trades under the symbol O on the New York Stock Exchange.