(Reuters) – Real estate income (NYSE:) on Monday beat Wall Street expectations for second-quarter funds from operations (FFO) as the real estate investment trust benefited from higher rental income at its properties.
The REIT, which has more than 13,400 properties in the United States and Europe, leases its locations to clients in industries such as retail, food service, manufacturing and gaming.
While property management costs increased, the company was able to cushion its FFO by increasing rental rates and investing in high-growth properties.
Comparable store rental revenue for the quarter ended June 30 was $1.0 billion, compared with $998.2 million a year earlier.
Realty Income reported total revenue of $1.34 billion in the quarter, above analysts' average estimate of $1.25 billion, according to LSEG data.
The San Diego, California-based company reported adjusted FFO of $1.06 per share, compared with analysts' estimate of $1.05.
It lowered its 2024 net income forecast to a range of $1.21 to $1.30 per share from its previous projection of $1.26 to $1.35 per share, but maintained expectations for annual adjusted FFO.
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