Realty Income lifts lower end of 2024 FFO forecast on positive investment view
Nov 4 (Reuters) -Realty Income Corp O.N raised the lower end of its annual funds from operations (FFO) forecast on Monday, citing a positive investment environment.
The rising competition among retailers is fueling a surge in demand for commercial space, benefiting real estate investment trusts (REITs) such as Realty Income, which counts Walgreens WBA.O and Dollar General DG.N among its customers.
"Supported by improvements in the investment environment and solid operating results, we see a robust pipeline of opportunities," said CEO Sumit Roy.
The REIT now expects its full-year adjusted FFO to range between $4.17 and $4.21 per share, up from its previous estimate of $4.15 to $4.21 per share.
The company also lifted its full-year investment volume to an estimated $3.5 billion, up from its previous figure of $3 billion.
Realty Income, which recently closed a $9.3 billion merger with Spirit Realty Capital, owns over 13,000 properties in the United States and leases them to clients across the retail, restaurants and gaming industries.
The company's same-store rental revenues for the quarter ended September 30 increased by 0.2% to $1 billion, compared with the same period last year.
Total quarterly revenue rose 28% to $1.33 billion, beating analysts' average expectation of $1.28 billion, according to data compiled by LSEG.
The San Diego, California-based company posted an adjusted FFO of $1.05 per share for the third quarter, falling short of analysts' estimates of $1.07 per share.
Reporting by Utkarsh Shetti and Aatreyee Dasgupta in Bengaluru; Editing by Mohammed Safi Shamsi
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