Realty Income (O) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Financial performance and growth outlook

• Achieved 4.8% AFFO per share growth in 2024, marking 14 consecutive years of growth and a 10.2% total operational return for the year-end, with a 5.4% dividend yield.

• Averaged 11% total operational return annually over 30 years as a public company, with no negative years.

• Fourth quarter saw 4% AFFO per share growth and $1.7 billion deployed into high-quality investments.

• 2025 AFFO per share guidance is $4.22–$4.28, representing 1.4% growth at midpoint, factoring in 75 basis points of bad debt expense from recent M&A.

• Targeting $4 billion in investments for 2025, with a strong pipeline and disciplined capital allocation.

Portfolio strategy and diversification

• Portfolio includes over 15,600 properties across multiple industries, supporting stability.

• Recent $770 million sale-leaseback with 7-Eleven made it the largest client, demonstrating ability to execute large deals at attractive valuations.

• Investment activity in 2024 was nearly evenly split between U.S. and international markets, with 2025 expected to be similar but focused on smaller, flow business transactions.

• Asset recycling expected to remain around $600 million in 2025, similar to 2024, as part of ongoing portfolio management.

M&A, credit, and risk management

• M&A is used selectively, with high hurdles due to potential volatility and rent loss from acquired tenants.

• 75 basis points of bad debt expense in 2025 guidance is mainly from tenants acquired via M&A, such as Party City and At Home, which are closely monitored.

• Watch list currently at 4.8% of tenants; historical bankruptcy recovery rate is 82%, limiting rent loss impact.

• Credit risk is managed by tracking operational and financial milestones for tenants, with recovery strategies in place.