ESCONDIDO, Calif., July 25 /PRNewswire-FirstCall/ --
Realty Income Corporation (Realty Income), The Monthly Dividend Company(TM),
(NYSE: O) today announced operating results for the second quarter and six
months ended June 30, 2002.
COMPANY HIGHLIGHTS:
(For the three months ended June 30, 2002)
-- Revenue increased 17.3% to $33.9 million
-- Funds from Operations (FFO) increased 26.4% to $23.0 million
-- FFO per diluted common share increased 7.8% to $0.69
-- Portfolio occupancy was 98.4%
-- Same store rents increased 1.5% to $27.32 million
-- The Company invested $79.0 million in 88 additional properties at a
10.4% lease rate
-- The common stock monthly dividend amount was increased for the 19th
consecutive quarter
-- The annualized dividend amount was increased to $2.31 per share from
$2.295 per share
-- Realty Income paid its 383rd consecutive monthly dividend through
June 2002
-- The Company will begin expensing stock options in 2002, which is
anticipated to have minimal impact on future earnings
Financial Results
Revenue Increases
Realty Income's revenue for the second quarter ended June 30, 2002
increased 17.3% to $33.9 million as compared to $28.9 million for the same
quarter ended June 30, 2001.
Revenue for the six months ended June 30, 2002 increased 12.3% to
$66.7 million from $59.4 million for the same period in 2001.
Funds from Operations
FFO for the quarter ended June 30, 2002 increased 26.4% to $23.0 million
as compared to $18.2 million for the same quarter in 2001. On a diluted per
common share basis, FFO increased 7.8% to $0.69 per share compared to
$0.64 per share for the same period in 2001.
FFO for the six months ended June 30, 2002 increased 26.8% to
$45.4 million as compared to $35.8 million for the same period one year ago.
On a diluted per common share basis, FFO increased 5.4% to $1.37 per share
compared to $1.30 per share for the same period in 2001.
FFO is a widely used measure of REIT performance that excludes non-cash
charges for the depreciation of real estate and gains on sales of investment
properties. FFO is one measure of a company's cash flow and of its ability to
pay dividends.
Net Income Available to Common Stockholders
Net income available to common stockholders for the quarter ended
June 30, 2002 increased to $16.0 million as compared to $11.0 million for the
same period in 2001. On a diluted per common share basis, net income was
$0.48 per share as compared to $0.39 per share for the three months ended
June 30, 2001.
The calculation to determine net income for a real estate company includes
gains and losses from the sale of investment properties. The amount of gains
and losses varies from quarter to quarter according to the timing of property
sales. This variance can significantly impact net income.
Excluding the gain on sales of investment properties and income from
discontinued operations during the second quarter of each year, income from
continuing operations available to common stockholders increased by $0.08 to
$0.44 per share in 2002 as compared to $0.36 per share for the same quarter in
2001, on a diluted per common share basis.
Net income available to common stockholders for the six months ended
June 30, 2002 increased to $31.9 million as compared to $27.1 million for the
same period in 2001. On a diluted per common share basis, net income
decreased to $0.96 per share as compared to $0.98 per share for the same
period one year ago.
Excluding the gain on sales of investment properties and income from
discontinued operations during the first six months of each year, income from
continuing operations available to common stockholders increased by $0.17 to
$0.87 per share in 2002 as compared to $0.70 per share for the same period in
2001, on a diluted per common share basis.
Dividend Information
In June 2002, Realty Income announced the 19th consecutive quarterly
increase in the amount of the monthly dividend on its common stock. This
marked the 21st increase in the amount of the dividend since 1995. The amount
of the monthly dividend was increased to $0.1925 per share from $0.19125 per
share. This represents an annualized dividend amount of $2.31 per share. The
Company continues its 33-year history of declaring and paying common stock
dividends on a monthly basis.
Real Estate Portfolio Update
As of June 30, 2002, Realty Income's portfolio of freestanding, single-
tenant retail properties consisted of 1,199 properties located in 48 states,
leased to 81 retail chains doing business in 24 retail industries. The
properties are leased under long-term, triple-net leases with a weighted
average remaining lease term of approximately 10.7 years.
Portfolio Management Activities
The Company's portfolio of retail real estate owned under 15- to 20-year
net leases continues to perform well and provide dependable lease revenue
supporting the payment of monthly dividends. As of June 30, 2002, Realty
Income's portfolio occupancy was 98.4% with only 19 properties available for
lease out of 1,199 properties in the portfolio.
Same store rents on 951 properties under lease during the three months
ended June 30, 2002 and 2001 increased 1.5% to $27.32 million from
$26.91 million in 2001. Same store rents on 951 properties under lease during
the six months ended June 30, 2002 and 2001 increased 1.8% to $54.75 million
compared to $53.76 million in 2001.
Property Acquisitions
During the second quarter ended June 30, 2002, Realty Income invested
$79.0 million in 88 new properties and properties under development with an
initial contractual lease yield of 10.4%. The new properties are located in
23 different states and are 100% leased with an initial average lease length
of 20 years. They are leased to four different retail chains in the
automotive service, convenience store and restaurant industries.
During the six months ended June 30, 2002, the Company invested
$86.8 million in 91 new properties and properties under development with an
initial contractual lease yield of 10.4%. The new properties are located in
24 different states and are 100% leased with an initial average lease length
of 19.9 years. They are leased to seven different retail chains in the
automotive service, convenience store, office supply, restaurant and shoe
store industries.
Property Dispositions
During the second quarter Realty Income continued to execute its asset
disposition program. The objective of the program is to sell assets when the
Company believes the reinvestment of the sales proceeds will generate higher
returns, enhance the credit quality of the Company's real estate portfolio or
increase the average lease length. During the quarter ended June 30, 2002,
Realty Income sold 10 properties for $3.8 million and recorded a gain on sales
of $1.3 million. The properties consisted of six childcare facilities, three
restaurants and one racquetball facility. The proceeds were used to pay down
the Company's acquisition credit facility and invest in new properties.
Through June 30, 2002, Realty Income sold 16 properties for $7.2 million and
recorded a gain on sales of $2.4 million. The properties consisted of seven
childcare facilities, eight restaurants and one racquetball facility. In
accordance with Generally Accepted Accounting Principles (GAAP), these gains
are included in Income from Discontinued Operations on the Consolidated
Statements of Income.
Other Activities
Issuance of Common Stock
On July 19, 2002, Realty Income issued 1.55 million shares of common stock
priced at $33.40 per share. The net offering proceeds of approximately
$49 million were used to repay a portion of the amount outstanding on the
Company's $200 million unsecured acquisition credit facility, which funded the
acquisition of $86.8 million in additional properties during the first half of
2002.
Crest Net Lease
Crest Net Lease Inc., a subsidiary of Realty Income, is focused on
acquiring and subsequently marketing net-leased properties for sale. During
the second quarter ended June 30, 2002, Crest sold eight properties for
$9.0 million and reported a gain on sales of $1.1 million. During the quarter
Crest also invested $987,000 in properties under development.
For the six months ended June 30, 2002, Crest sold 11 properties for
$11.7 million and reported a gain on sales of $1.5 million. During this same
period Crest invested $3.8 million in two new properties and properties under
development. As of June 30, 2002, Crest carried an inventory of $15.9 million
in properties held for sale.
Management believes that Crest will carry an average inventory of between
$20 to $25 million in properties. The subsidiary generates an earnings spread
on the difference between the lease payments it receives on the properties
held in inventory and the cost of the capital used to acquire the properties.
It is management's belief that at this level of inventory these earnings will
more than cover the ongoing operating expenses of Crest. The contribution to
Realty Income's FFO by Crest depends on the timing and the number of property
sales achieved, if any, in a given quarter. During the second quarter and
first half of 2002, Crest generated $0.03 and $0.04, respectively, per diluted
common share in FFO for Realty Income.
CEO Comments on Mid-Year Operating Results
Commenting on Realty Income's financial results and real estate
operations, Tom A. Lewis, Chief Executive Officer, stated, "We are delighted
with our operating results for the first half of the year. Our portfolio of
1,199 properties remains extremely healthy with occupancy at 98.4% and a
weighted average remaining lease length of 10.7 years. Both revenue and FFO
per share were higher as a result of continued increases in our same store
rents and acquisitions we made during the second half of 2001. The market for
acquisitions, in our freestanding, net-lease retail niche, remains strong as
demonstrated by the purchase of just over $86 million in new properties so far
this year. By acquiring additional properties and increasing the size of our
real estate portfolio, the lease revenue supporting the payment of dividends
has continued to increase, allowing us to raise the amount of the dividend for
19 consecutive quarters. So far this year we have increased the dividend two
times and have now paid 383 consecutive monthly dividends to our shareholders.
"Dividend safety is also critical to our shareholders. Our commitment to
maintaining a conservative balance sheet, stable real estate performance and a
high occupancy rate is fundamental to achieving this important shareholder
objective. We are pleased with the continued positive performance of our real
estate portfolio during challenging economic times, and attribute this to the
fact that the majority of our retailers provide goods and services, at low
price points, that satisfy basic consumer needs.
"A final area worth noting is the success of our subsidiary, Crest Net
Lease. Since Crest was formed just two years ago, it turned profitable within
the first six months and has consistently contributed to Realty Income's FFO
growth. While Crest's contribution to FFO is difficult to predict on a
quarter to quarter basis, we have been very gratified with the success of
Crest and are pleased to note that Crest contributed $0.04 per share to Realty
Income's FFO per share during the first six months of 2002.
"We are fortunate that, as The Monthly Dividend Company(TM), we have
continued to offer a dependable source of monthly income to our shareholders
throughout market swings and economic uncertainties. We are also fortunate,
in today's reporting environment, to run a straightforward business with
fairly simple and easy to understand financial statements. In keeping with
Realty Income's transparent reporting practices we will be expensing the fair
value of future stock option grants rather than using the typical disclosure
in footnotes to the financial statements. We believe this is a fair and
forthright way to present the impact of any future option grants and the
financial impact of those grants will be obvious to shareholders."
2002 Earnings Commentary
Realty Income's funds from operations tend to be stable and fairly
predictable because of the long-term leases that are the primary source of the
Company's revenue. There are, however, several factors that can impact
changes in FFO per share from levels that have been anticipated by the
Company. These factors include, but are not limited to, changes in interest
rates, occupancy rates, periodically accessing the capital markets, the level
of property acquisitions and dispositions, lease rollovers, and the operations
of Crest Net Lease.
2002 Estimates
Management estimates that FFO per common share for 2002 will be
approximately $2.80 per share, which would equate to an increase of
approximately 5.3% over 2001 FFO per share of $2.66.
Management estimates Crest Net Lease, Inc. will generate between $0.06 to
$0.08 per share of FFO during 2002. Crest's primary business is the purchase
and sale of properties at a profit. These sales may occur at various times
during the course of the year, which could cause FFO in certain quarters to
increase or decrease from normal levels.
The Company does not intend to provide quarterly estimates of FFO. Absent
changes in annual FFO guidance, at the end of each quarter, it may be presumed
that the Company's overall estimate for the year has not changed.
Forward-Looking Statements
Statements in this press release, which are not strictly historical, are
"forward-looking" statements. Forward-looking statements involve known and
unknown risks, which may cause the Company's actual future results to differ
materially from expected results. These risks include, among others, general
economic conditions, local real estate conditions, the availability of capital
to finance planned growth, and the profitability of the Company's subsidiary,
Crest Net Lease, as described in the Company's filings with the Securities and
Exchange Commission. Consequently, such forward-looking statements should be
regarded solely as reflections of the Company's current operating plans and
estimates. Actual operating results may differ materially from what is
expressed or forecast in this press release. The Company undertakes no
obligation to publicly release the results of any revisions to these forward-
looking statements that may be made to reflect events or circumstances after
the date these statements were made.
Realty Income is The Monthly Dividend Company(TM), a New York Stock
Exchange real estate company dedicated to providing shareholders with
dependable monthly income. As of June 30, 2002, the Company had paid
383 consecutive monthly dividend payments throughout its 33-year operating
history. The monthly income is supported by the cash flows from 1,199 retail
properties owned under long-term lease agreements with leading regional and
national retail chains. The Company is an active buyer of net-leased retail
properties nationwide.
Note to Editors:
Realty Income press releases are available at no charge by calling our
toll-free investor hotline number: 888-811-2001, or via the internet at
http://www.realtyincome.com/Investing/News.html
CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended June 30, 2002 and 2001
(dollars in thousands, except per share amounts)
Three Months Three Months Six Months Six Months
Ended 6/30/02 Ended 6/30/01 Ended 6/30/02 Ended 6/30/01
REVENUE
Rental $32,724 $28,552 $65,160 $57,025
Gain on sales
of real estate
acquired for resale 1,126 161 1,491 2,089
Interest and other 51 179 83 306
33,901 28,892 66,734 59,420
EXPENSES
Interest 5,803 6,587 11,408 14,646
Depreciation and
amortization 7,421 6,906 14,683 13,865
General and
administrative 2,348 1,866 4,737 3,906
Property 622 556 1,243 1,164
Other 598 240 886 1,020
Provision for
impairment loss -- 200 -- 530
16,792 16,355 32,957 35,131
Income from
continuing
operations 17,109 12,537 33,777 24,289
Income from
discontinued
operations 1,336 775 2,622 1,545
Gain on sales of
investment properties -- 164 340 6,115
Net income 18,445 13,476 36,739 31,949
Preferred stock
dividends (2,428) (2,428) (4,856) (4,856)
Net income available
to common
stockholders $16,017 $11,048 $31,883 $27,093
Funds from
operations (FFO) $22,987 $18,214 $45,370 $35,820
Per share information
for common
stockholders:
FFO
Basic $0.69 $0.64 $1.37 $1.30
Diluted 0.69 0.64 1.37 1.30
Income from
continuing
Operations
Basic 0.44 0.36 0.87 0.71
Diluted 0.44 0.36 0.87 0.70
Net income
Basic 0.48 0.39 0.96 0.98
Diluted 0.48 0.39 0.96 0.98
Cash dividends paid 0.574 0.559 1.144 1.114
FUNDS FROM OPERATIONS
For the three and six months ended June 30, 2002 and 2001
(dollars in thousands, except per share amounts)
Three Months Three Months Six Months Six Months
Ended 6/30/02 Ended 6/30/01 Ended 6/30/02 Ended 6/30/01
Net income
available
to common
stockholders $16,017 $11,048 $31,883 $27,093
Depreciation and
amortization:
Continuing
operations 7,421 6,906 14,683 13,865
Discontinued
operations 218 252 460 503
Depreciation of
furniture,
fixtures
& equipment (34) (28) (67) (56)
Provision for
impairment loss:
Continuing
operations -- 200 -- 530
Discontinued
operations 670 -- 830 --
Gain on sales of
investment
properties:
Continuing
operations -- (164) (340) (6,115)
Discontinued
operations (1,305) -- (2,079) --
Funds from
operations $22,987 $18,214 $45,370 $35,820
Dividends paid
to common
stockholders $19,114 $15,419 $37,934 $30,189
FFO in excess
of dividends $3,873 $2,795 $7,436 $5,631
Basic and diluted
FFO per common
share $0.69 $0.64 $1.37 $1.30
Weighted
average number
of common shares
used for:
Basic per share
Computation 33,310,413 28,393,227 33,178,176 27,507,539
Diluted per
share
Computation 33,368,359 28,468,992 33,230,817 27,565,500
FUNDS FROM OPERATIONS GENERATED BY CREST NET LEASE
For the three and six months ended June 30, 2002 and 2001
(dollars in thousands, except per share amounts)
Gains from the sales of real
estate acquired for resale $1,126 $161 $1,491 $2,089
Rent and other revenue 481 354 956 786
Interest expense (144) (171) (219) (454)
General and administrative exp. (88) (73) (284) (278)
Property expenses -- -- (42) --
Income taxes (474) (127) (638) (784)
Minority interest -- (3) -- (56)
Funds from operations
contributed by Crest Net $901 $141 $1,264 $1,303
Basic and diluted
FFO per common share $0.03 $0.01 $0.04 $0.05
CONSOLIDATED BALANCE SHEETS
As of June 30, 2002 and December 31, 2001
(dollars in thousands, except per share amounts)
2002 2001
ASSETS
Real estate, at cost:
Land $436,907 $412,455
Buildings and improvements 792,244 765,707
1,229,151 1,178,162
Less accumulated depreciation
and amortization (233,736) (233,848)
Net real estate held for investment 995,415 944,314
Real estate held for sale, net 32,706 23,356
Net real estate 1,028,121 967,670
Cash and cash equivalents 21,242 2,467
Accounts receivable 3,284 4,857
Goodwill, net 17,206 17,206
Other assets 10,467 11,508
Total assets $1,080,320 $1,003,708
LIABILITIES AND STOCKHOLDERS' EQUITY
Distributions payable $8,296 $6,238
Accounts payable and accrued expenses 5,578 5,834
Other liabilities 4,118 4,543
Lines of credit payable 155,800 85,300
Notes payable 230,000 230,000
Total liabilities 403,792 331,915
Stockholders' equity:
Preferred stock and paid in capital,
par value
$1.00 per share, 20,000,000 shares
authorized, 4,125,700 shares issued
and outstanding 99,368 99,368
Common stock and paid in capital,
par value
$1.00 per share, 100,000,000 shares
authorized, 33,319,389 and 32,829,111
shares issued and outstanding in 2002
and 2001, respectively 806,467 795,505
Distributions in excess of net income (229,307) (223,080)
Total stockholders' equity 676,528 671,793
Total liabilities and
stockholders' equity $1,080,320 $1,003,708
The following table sets forth certain information regarding our
properties classified according to the business of the respective tenants,
expressed as a percentage of our total rental revenue:
Percentage of Rental Revenue (1)
Annualized (2)
Rent as of For the Years Ended
June 30, Dec 31, Dec 31, Dec 31,
2002 2001 2000 1999
Industry
Apparel Stores 2.2% 2.4% 2.4% 3.8%
Automotive Parts 7.5 8.3 8.3 8.6
Automotive Service 8.1 5.7 5.8 6.6
Book Stores 0.4 0.4 0.5 0.5
Business Services 0.1 0.1 0.1 0.1
Child Care 20.4 23.9 24.7 25.3
Consumer Electronics 3.3 4.0 4.9 4.4
Convenience Stores 9.6 8.4 8.4 7.2
Crafts & Novelties 0.4 0.4 0.4 0.4
Drug Stores 0.2 0.2 0.2 0.2
Entertainment 1.8 1.8 2.0 1.2
General Merchandise 0.5 0.6 0.6 0.6
Grocery Stores 0.5 0.6 0.6 0.5
Health & Fitness 3.9 3.6 2.4 0.6
Home Furnishings 5.5 6.0 5.8 6.5
Home Improvement 1.1 1.3 2.0 3.6
Office Supplies 2.0 2.2 2.3 2.6
Pet Supplies & Services 1.7 1.6 1.5 1.1
Private Education 1.2 1.5 1.4 1.2
Restaurants 13.4 12.2 12.3 13.3
Shoe Stores 0.9 0.7 0.8 1.1
Sporting Goods 4.0 0.9 -- --
Theaters 3.7 4.3 2.7 0.6
Video Rental 3.3 3.7 3.9 4.3
Other 4.3 5.2 6.0 5.7
Totals 100.0% 100.0% 100.0% 100.0%
For the Years Ended
Dec 31, Dec 31, Dec 31, Dec 31,
1998 1997 1996 1995
Industry
Apparel Stores 4.1% 0.7% --% --%
Automotive Parts 7.8 9.1 10.5 11.4
Automotive Service 7.5 6.4 4.8 3.7
Book Stores 0.6 0.5 -- --
Business Services * -- -- --
Child Care 29.2 35.9 42.0 45.6
Consumer Electronics 5.4 6.5 0.9 --
Convenience Stores 6.1 5.5 4.6 2.4
Crafts & Novelties * -- -- --
Drug Stores 0.1 -- -- --
Entertainment -- -- -- --
General Merchandise * -- -- --
Grocery Stores * -- -- --
Health & Fitness 0.1 -- -- --
Home Furnishings 7.8 5.6 4.4 2.9
Home Improvement * -- -- --
Office Supplies 3.0 1.7 -- --
Pet Supplies & Services 0.6 0.2 -- --
Private Education 0.9 -- -- --
Restaurants 16.2 19.8 24.4 24.7
Shoe Stores 0.8 0.2 -- --
Sporting Goods -- -- -- --
Theaters -- -- -- --
Video Rental 3.8 0.6 -- --
Other 6.0 7.3 8.4 9.3
Totals 100.0% 100.0% 100.0% 100.0%
* Less than 0.1%
(1) The table does not include properties owned by our subsidiary, Crest
Net Lease.
(2) Annualized Rent is calculated by multiplying the monthly contractual
base rent as of June 30, 2002 for each of the properties by 12, and
adding the previous 12 month's historic percentage rent on properties
owned at June 30, 2002, which totaled $1.7 million (i.e., percentage
rent is calculated as a percentage of the tenants' gross sales above a
specified level). For the properties under construction, an estimated
contractual base rent is used based upon the estimated total costs of
each property.
The following table sets forth certain information regarding properties
owned by Realty Income at June 30, 2002, classified according to the
retail business types and the level of services they provide
(dollars in thousands):
Number of Annualized Percentage of
Industry Properties(1) Rent(1)(2) Annualized Rent
TENANTS PROVIDING SERVICES
Automotive Service 176 $11,533 8.2%
Child Care 320 28,618 20.4
Entertainment 8 2,564 1.8
Health & Fitness 8 5,455 3.9
Private Education 5 1,738 1.3
Theaters 10 5,209 3.7
Other 8 6,021 4.3
535 61,138 43.6
TENANTS SELLING GOODS
AND SERVICES
Automotive Parts
(with installation) 65 6,066 4.3
Business Services 1 124 0.1
Convenience Stores 114 13,545 9.6
Home Improvement 2 187 0.1
Pet Supplies & Services 6 1,561 1.1
Restaurants 223 18,752 13.4
Video Rental 34 4,577 3.3
445 44,812 31.9
TENANTS SELLING GOODS
Apparel Stores 5 3,103 2.2
Automotive Parts 75 4,347 3.1
Book Stores 2 606 0.4
Consumer Electronics 36 4,660 3.3
Crafts & Novelties 2 517 0.4
Drug Stores 1 235 0.2
General Merchandise 11 687 0.5
Grocery Stores 2 726 0.5
Home Furnishings 43 7,737 5.5
Home Improvement 13 1,377 1.0
Office Supplies 9 2,846 2.0
Pet Supplies 4 761 0.5
Shoe Stores 5 1,221 0.9
Sporting Goods 11 5,584 4.0
219 34,407 24.5
Totals 1,199 $140,357 100.0%
(1) The table does not include properties owned by our subsidiary,
Crest Net Lease.
(2) Annualized Rent is calculated by multiplying the monthly contractual
base rent as of June 30, 2002 for each of the properties by 12, and
adding the previous 12 month's historic percentage rent on properties
owned at June 30, 2002, which totaled $1.7 million (i.e., percentage
rent is calculated as a percentage of the tenants' gross sales above a
specified level). For the properties under construction, an estimated
contractual base rent is used based upon the estimated total costs of
each property.
The following table sets forth certain information regarding the timing of
the initial lease term expirations (excluding extension options) on our
1,175 net leased, single-tenant retail properties as of June 30, 2002
(dollars in thousands):
Number of Annualized Percent of
Year Leases Expiring(1) Rent(1)(2) Annualized Rent
2002 71 $6,231 4.6%
2003 79 6,797 5.0
2004 116 10,013 7.4
2005 84 6,619 4.9
2006 75 6,740 5.0
2007 94 6,541 4.9
2008 63 5,673 4.2
2009 28 2,526 1.9
2010 43 3,812 2.8
2011 35 5,312 3.9
2012 50 5,995 4.4
2013 70 12,348 9.2
2014 35 6,287 4.7
2015 35 4,186 3.1
2016 14 1,497 1.1
2017 14 4,691 3.5
2018 16 1,988 1.5
2019 49 8,246 6.1
2020 10 3,664 2.7
2021 96 14,746 10.9
2022 89 8,244 6.1
2023 2 341 0.3
2026 2 372 0.3
2033 2 1,118 0.8
2034 3 879 0.7
Totals 1,175 $134,866 100.0%
(1) This table does not include five multi-tenant properties and
19 vacant, unleased single-tenant properties owned by the Company and
properties owned by our subsidiary, Crest Net Lease. The lease
expirations for properties under construction are based on the
estimated date of completion of such properties.
(2) Annualized rent is calculated by multiplying the monthly contractual
base rent as of June 30, 2002 for each of the properties by 12 and
adding the previous 12 month's historic percentage rent on properties
owned at June 30, 2002, which totaled $1.7 million (i.e., percentage
rent is calculated as a percentage of the tenants' gross sales above a
specified level). For the properties under construction, an estimated
contractual base rent is used based upon the estimated total costs of
each property.
The following table sets forth certain state-by-state information
regarding Realty Income's property portfolio as of June 30, 2002
(dollars in thousands):
Approximate Percentage of
Number of Percent Leasable Annualized Annualized
State Properties(1) Leased Square Feet Rent(1)(2) Rent
Alabama 15 93% 142,600 $1,391 1.0
Alaska 2 100 128,500 1,003 0.7
Arizona 35 97 248,800 3,947 2.8
Arkansas 8 100 48,800 916 0.7
California 61 98 1,024,200 14,496 10.3
Colorado 44 100 272,400 4,235 3.0
Connecticut 16 100 245,600 3,705 2.6
Delaware 1 100 5,400 72 0.1
Florida 92 95 1,163,500 15,223 10.8
Georgia 67 99 466,800 6,611 4.7
Idaho 11 100 52,000 770 0.5
Illinois 41 100 322,200 4,547 3.2
Indiana 30 97 169,500 2,172 1.5
Iowa 10 100 67,600 702 0.5
Kansas 21 100 190,000 2,209 1.6
Kentucky 13 100 43,600 1,157 0.8
Louisiana 7 100 47,100 723 0.5
Maryland 14 100 113,700 2,369 1.7
Massachusetts 30 100 138,300 2,897 2.1
Michigan 14 100 87,300 1,245 0.9
Minnesota 22 95 237,300 2,239 1.6
Mississippi 22 95 181,000 1,708 1.2
Missouri 35 100 230,400 3,001 2.1
Montana 2 100 30,000 305 0.2
Nebraska 10 100 91,200 1,211 0.9
Nevada 10 100 100,700 1,593 1.1
New Hampshire 6 100 23,900 593 0.4
New Jersey 22 100 106,100 3,470 2.5
New Mexico 5 100 46,000 361 0.3
New York 24 100 265,600 5,648 4.0
North Carolina 36 100 181,400 3,454 2.5
North Dakota 1 100 22,000 65 *
Ohio 65 95 365,800 5,418 3.9
Oklahoma 19 100 107,600 1,537 1.1
Oregon 17 100 202,100 1,887 1.3
Pennsylvania 32 100 251,200 3,597 2.6
Rhode Island 1 100 3,500 116 0.1
South Carolina 47 100 142,000 4,035 2.9
South Dakota 2 100 12,600 176 0.1
Tennessee 33 100 248,800 3,342 2.4
Texas 153 97 1,208,600 14,159 10.1
Utah 7 100 43,300 645 0.5
Vermont 1 100 2,500 87 0.1
Virginia 32 100 314,400 5,697 4.1
Washington 40 100 261,800 3,216 2.3
West Virginia 2 100 16,800 161 0.1
Wisconsin 17 100 168,400 1,976 1.4
Wyoming 4 100 20,100 271 0.2
Totals/Average 1,199 98% 9,863,000 $140,358 100.0%
* Less than 0.1%
(1) Does not include properties owned by our subsidiary, Crest Net.
(2) Annualized rent is calculated by multiplying the monthly contractual
base rent as of June 30, 2002 for each of the properties by 12 and
adding the previous 12 month's historic percentage rent on properties
owned at June 30, 2002, which totaled $1.7 million (i.e., additional
rent calculated as a percentage of the tenants' gross sales above a
specified level). For the properties under construction, an
estimated contractual base rent is used based upon the estimated total
costs of each property.
SOURCE Realty Income Corporation
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Related links:
http://www.realtyincome.com
CONTACT:
Tere Miller, Vice President, Corporate
Communications of Realty Income Corporation, +1-760-741-2111,
ext. 177
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