Realty Income

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

Realty Income
TypePublic company
NYSE: O
S&P 500 Index component
IndustryReal estate investment trust
Founded1969 (1969)
FounderWilliam E. Clark, Jr.
Evelyn J. Clark
HeadquartersSan Diego, California
Key people
 Michael D. McKee, Chairman
Sumit Roy, CEO
Paul M. Meurer, CFO
ProductsFree-standing, single-tenant commercial properties
Revenue $1.491 billion (2019)
$436 million (2019)
Total assets $18.554 billion (2019)
Total equity $9.804 billion (2019)
Number of employees
194 (2019)
Websiterealtyincome.com
Footnotes / references
[1]

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 December 31, 2019, the company owned 6,483 properties totaling 106.3 million rentable square feet, with an average property size of 11,800 square feet per retail property and 237,668 square feet per industrial property.[1]

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

Rank Tenant % of 2019 Revenue
1 Walgreens 6.1%
2 7-Eleven 4.8%
3 Dollar General 4.4%
4 FedEx 4.0%
5 Dollar Tree/Family Dollar 3.5%
6 LA Fitness 3.4%
7 AMC Theatres 3.0%
8 Regal Cinemas 2.9%
9 Walmart/Sam's Club 2.6%
10 Sainsbury's 2.4%

History

Realty Income Corporation was founded in 1969 by William E. Clark and Evelyn J. Clark.[3] Its first acquisition was a Taco Bell restaurant in early 1970.[3]

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.[4]

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.[5] In 2009, Clark retired as chairman.[6]

In 2013, the company acquired American Realty Capital Trust, founded by Nicholas Schorsch, in a $2.95 billion transaction.[7][8]

In 2015, the company was added to the S&P 500 Index[9] and the S&P High Yield Dividend Aristocrats index.[10]

In 2018, Sumit Roy became the company's CEO.[11]

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.[12]

References
  1. "Realty Income Corporation 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "Registered trademark for The Monthly Dividend Company". United States Patent and Trademark Office.
  3. Frankel, Matthew (June 3, 2015). "Realty Income Corporation: How a Taco Bell Evolved Into a $10 Billion REIT". The Motley Fool.
  4. WOLFF, ERIC (December 8, 2010). "REAL ESTATE: Local company ready to reap the bubble's remains". The San Diego Union-Tribune.
  5. "Realty Income Names John P. Case to Succeed Tom A. Lewis As Chief Executive Officer" (Press release). PR Newswire. September 3, 2013.
  6. "William E. Clark to Retire as Realty Income Chairman" (Press release). Business Wire. September 3, 2013.
  7. "Realty Income To Acquire American Realty Capital Trust In $2.95 Billion Transaction" (Press release). PR Newswire. September 6, 2012.
  8. "Realty Income Closes American Realty Capital Trust Acquisition" (Press release). Business Wire. January 22, 2013.
  9. "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.
  10. https://www.reit.com/news/reit-magazine/march-april-2016/realty-income-reaping-triple-net-lease-rewards
  11. https://www.journalnow.com/business/the-briefcase-walmart-campus-off-kester-mill-road-sells-for/article_e5e7b8a5-6d3b-5da2-ad85-c95c87660c2b.html
  12. Brad Thomas (2019-04-23). "The Monthly Dividend Company Goes Global". Forbes. Retrieved 2019-07-06.
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