Key highlights translated into Finnish with ChatGPT:
Third Quarter 2024 Financial and Operational Highlights
Total revenue increased 6.7% year-over-year to $964.7 million.
Net income attributable to common stockholders increased 31.7% year-over-year to $732.9 million, and earnings per share increased 27.4% year-over-year to $0.70.
AFFO (Adjusted Funds From Operations) attributable to common stockholders increased 8.4% year-over-year to $593.9 million, and AFFO per share increased 4.9% year-over-year to $0.57.
Declared a quarterly cash dividend of $0.4325 per share, representing a 4.2% increase year-over-year.
At the end of the quarter, cash and cash equivalents totaled $355.7 million, with an estimated $630.2 million in proceeds from future equity sales.
Invested $230 million in various loan agreements and Partner Property Growth Fund agreements.
Updated AFFO guidance for 2024: expected to be $2,360–2,370 million, or $2.25–2.26 per diluted share.
Are there any unlisted REIT investments? I would like to make investments for a limited company, but initially, I would prefer not to pay book-entry account fees.
I don’t recall Nordnet charging any fees for a corporate book-entry account. I’m not sure about unlisted ones, so I’ll delete the message if it turns out to be a useless comment
Some time ago, Dollar Tree announced it would be closing 1,000 stores, and other similar restructurings were listed among Realty Income’s tenants. I don’t remember where I read it, and it’s probably marginal since the company has a huge number of leased properties, though the company’s growth is marginal as well. Additionally, there is over 26 billion in debt, and it doesn’t seem like interest rates are coming down. Will it be the case that when cheap loans have to be refinanced, higher interest rates will be applied? I’m just writing from memory based on a gut feeling, and I might return as a shareholder in the near future.
Realty has inherited all sorts of assets on its balance sheet from previous acquisitions, and some of them aren’t exactly high-quality. As you mentioned, these don’t really move the needle for a company of that size, and the dividend certainly isn’t under threat, but it might be quite hard to generate growth.
I was looking at which bonds are maturing, and they roll over fairly steadily. Interest rates are generally hovering around the 3-4% mark, so there won’t be a massive jump. Every percentage point counts, of course, since margins are already very thin.
Today, all the stock markets are in turmoil, and for good reason.
I’ve personally been adding a bit to my WPC position recently. I’ve liked the industrial focus before, and if industrial jobs are brought back to the US in line with Trump’s goals, there should continue to be demand for industrial/logistics properties.
A potential rise in interest rates is poison for these in two ways. Even if the company’s financing costs don’t rise much, investors’ yield requirements will. If today’s price drops in many REITs are due more to the yield requirement pressure caused by alternative investments, then I’m more than happy to move more money into these from my savings accounts with falling interest rates.
These aren’t like Finnish companies when it comes to financing. Fixed interest rates with long durations are the norm, and variable-rate loans are more of an exception, usually serving only as temporary financing.
The essential factor is the ability to pass on increased costs to rents. For example, I haven’t followed Realty’s recent deals, but the norm used to be a fixed rent increase of about two percent. That doesn’t get you very far in the inflationary environment of the last few years, as the general cost level rises faster and financing is also a bit more expensive. Only when leases expire can you negotiate so-called market rents for the better locations. On the other hand, that increase clause was quite favorable during the zero-interest-rate era.
How have you timed your additional REIT purchases? This is an asset that pays monthly dividends, and I’m wondering if that somehow affects potential “bottom fishing” with them? Timing in the stock market is always more or less a lottery, but are there any regularities in REITs that should be followed?
I buy when it looks cheap through key figures It’s worth checking out the AFFO / FFO considerations as valuation multiples from this thread. REITs are quite a popular asset class in the US, and especially for popular ones, you can find good analysis, e.g., on Seeking Alpha, which covers historical valuation multiples / peer comparisons. I’m particularly interested in WPC and ARE at current prices
That BSR can be found on Nordnet, not Degiro. IBKR reports the exchange as TSE, which would be the Tokyo Stock Exchange, and the currency is dollar?!?! TSX would be Toronto’s. What am I missing here? I won’t pay Nordnet’s rip-off prices, but there it looks simplest with both hom.u (USD) and hom.un (CAD) tickers, both on TSX.
Could there be an error there? According to Yahoo Finance, BSR is on the Toronto exchange: TSX, i.e., Toronto Stock Exchange, which could theoretically be abbreviated as TSE. The company’s headquarters are in Vancouver, Canada, so dividends would follow Canadian rules.
It’s worth checking out the AFFO / FFO considerations as valuation multiples from this thread. REITs are quite a popular asset class in the US, and especially for popular ones, you can find good analysis, e.g., on Seeking Alpha, which covers historical valuation multiples / peer comparisons. I’m particularly interested in WPC and ARE at current prices 
