San Diego-based Realty Income Corp. recently revealed operating results for the first quarter, and according to John Case, CEO of the REIT, the company is pleased with the continued solid performance of its business.
“During the quarter, he said that the company had acquired $510 million of high-quality properties leased principally to investment grade rated tenants. “Our focus on quality is reflected in the continued health of our portfolio, which now generates over 50% of rental revenue from investment grade rated tenants. We ended the quarter with occupancy of 98.6%, our highest quarter-end occupancy in more than 10 years. Additionally, we achieved a positive recapture spread on properties re-leased during the quarter.”
In addition, Case said, the company remains committed to capitalizing its business in a “conservative manner.”
In April, the company completed a $500 million, seven-year bond offering at an effective yield of 3.96%, “reflecting the benefits afforded to us as the company with the highest-rated credit in the net lease sector. We’ve had a favorable start to the year and are reiterating our 2018 AFFO per share guidance of $3.14 – $3.20.”