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And Paul will start by reviewing the numbers of the quarter.Paul Meurer Thanks Tom as usual let me walk through the financial statements briefly and provide a few highlights of our results for the quarter beginning with the income statement. Total revenue increased $83.5 this quarter versus $81.3 million during the second quarter of 2009. Rental revenue increased 2% overall reflecting new acquisitions over the past year, and some positive thanks to the rent increases for the quarterly period. On the expense side depreciation and amortization expense increased by $742,000 in the comparative quarterly period as depreciation expense naturally increases as our property portfolio continues to grow. Interest expense remains flat at around $21.5 million; we had only $26.9 million in borrowings on our credit facility at quarter end. And on a related note our coverage ratios remain strong with interest coverage at 3.5 times and fixed charge coverage at 2.7 times. General and administrative or G&A expenses in the second quarter were $6.65 million up from last year but flat from the first quarter of this year. As we mentioned last year due largely to recent hiring and our acquisitions and research department, our current projection for G&A for 2010 is about $26 million or about 7.5% of total revenues. Naturally this will be impacted a bit by the level of acquisitions during the course of the year. Property expenses decreased to under $1.7 million in the comparative quarter and these are the expenses associated with our taxes maintenance and insurance expenses which we are responsible for on the properties we have available for lease. Income taxes consistent income taxes paid to various states by the company and they remained at around $300,000 during the quarter. Income from discontinued operations for the quarter totaled approximately $1.3 million real estate acquired for resale refers to the operations of Crest Net Lease. Crest are a subsidiary that acquires and resells properties. However Crest did not sell any properties in the quarter but overall contributed income or FFO of $158,000.
Real estate investment refers to property sales by growth in income from our existing core portfolio. We sold seven properties during the second quarter resulting overall in income of approximately $1.1 million and a reminder of course that these property sales gains are not included in our FFO or in the calculation of our AFFO.Preferred stock cash dividends remained at $6.1 million for the quarter and a net income available to common stock holders was approximately $25 million for the quarter. Funds from operations or FFO was $46.8 million for the quarter and FFO per share was $0.45 per share for the quarter. Our adjusted funds from operations or AFFO or the actual cash that we have available for distribution as dividends was higher at $0.46 per share for the quarter. Our AFFO is usually higher than our FFO each quarter because our capital expenditures are very low and we had very minimal straight line rent in our portfolio. We increased our cash monthly dividend again this quarter and we have increased the dividend 51 consecutive quarters and 58 times overall since we went public over 15 years ago. Now lets turn to the balance sheet briefly, we have continued to maintain our conservative and safe capital structure, our debt to total market cap is only 30% in our preferred stock outstanding represents just 6% of our capital structure. We were very please to immediately match fund to the Diageo acquisition last month with $250 million or 5.75% unsecured bond due in 2021. Thus we were left with only $26.9 million of borrowings on our $355 million credit facility at the end of the quarter. This facility also has a $100 million accordion expansion feature. The initial term runs until May 2011, plus thereafter two one-year extension options. Our next bond maturity isn't until 2013. Read the rest of this transcript for free on seekingalpha.com