falsedesktopO2020-12-31000072672821000043{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "PART I\t\t\tPage\n\tItem 1:\tBusiness\t2\n\t\tThe Company\t2\n\t\tRecent Developments\t3\n\t\tDividend Policy\t9\n\t\tBusiness Philosophy and Strategy\t10\n\t\tProperty Portfolio Information\t19\n\t\tForward-Looking Statements\t24\n\tItem 1A:\tRisk Factors\t25\n\tItem 1B:\tUnresolved Staff Comments\t39\n\tItem 2:\tProperties\t39\n\tItem 3:\tLegal Proceedings\t39\n\tItem 4:\tMine Safety Disclosures\t39\nPART II\t\t\t\n\tItem 5:\tMarket for Registrant's Common Equity Related Stockholder Matters and Issuer Purchases of Equity Securities\t40\n\tItem 6:\tSelected Financial Data\t40\n\tItem 7:\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t42\n\t\tGeneral\t42\n\t\tLiquidity and Capital Resources\t42\n\t\tResults of Operations\t50\n\t\tFunds from Operations Available to Common Stockholders (FFO)\t57\n\t\tAdjusted Funds from Operations Available to Common Stockholders (AFFO)\t58\n\t\tImpact of Inflation\t60\n\t\tImpact of Newly Adopted Accounting Standards\t60\n\tItem 7A:\tQuantitative and Qualitative Disclosures About Market Risk\t60\n\tItem 8:\tFinancial Statements and Supplementary Data\t62\n\tItem 9:\tChanges in and Disagreements with Accountants on Accounting and Financial Disclosure\t95\n\tItem 9A:\tControls and Procedures\t95\n\tItem 9B:\tOther Information\t96\nPART III\t\t\t\n\tItem 10:\tDirectors Executive Officers and Corporate Governance\t97\n\tItem 11:\tExecutive Compensation\t97\n", "q10k_tbl_2": "\tThree Months Ended\tThree Months Ended\tYear Ended\n\tSeptember 30 2020\tDecember 31 2020\tDecember 31 2020\nRental revenue reserves\t15.6\t8.1\t23.7\nStraight-line rent reserves\t1.6\t0.2\t1.8\nTotal rental revenue reserves\t17.2\t8.3\t25.5\n", "q10k_tbl_3": "\tMonth\tMonth\tMonthly Dividend\tIncrease\n2020 Dividend increases\tDeclared\tPaid\tper share\tper share\n1st increase\tDec 2019\tJan 2020\t0.2275\t0.0005\n2nd increase\tJan 2020\tFeb 2020\t0.2325\t0.0050\n3rd increase\tMar 2020\tApr 2020\t0.2330\t0.0005\n4th increase\tJun 2020\tJul 2020\t0.2335\t0.0005\n5th increase\tSep 2020\tOct 2020\t0.2340\t0.0005\n2021 Dividend increases\t\t\t\t\n1st increase\tDec 2020\tJan 2021\t0.2345\t0.0005\n", "q10k_tbl_4": "\tNumber of Properties\tLeasable Square Feet\tInvestment ($ in thousands)\tWeighted Average Lease Term (Years)\tInitial Average Cash Lease Yield (1)\nYear ended December 31 2020 (2)\t\t\t\t\t\nAcquisitions - U.S. (in 30 states)\t202\t5476009\t1302220\t14.9\t5.8%\nAcquisitions - U.K. (3)\t24\t2120256\t920934\t10.8\t6.1%\nTotal Acquisitions\t226\t7596265\t2223154\t13.2\t5.9%\nProperties under Development - U.S.\t18\t1601095\t84127\t15.3\t5.6%\nTotal (4)\t244\t9197360\t2307281\t13.2\t5.9%\n", "q10k_tbl_5": "Three months ended December 31 2020\t\nProperties available for lease at September 30 2020\t92\nLease expirations (1)\t159\nRe-leases to same client (2)\t(72)\nRe-leases to new client (2)(3)\t(5)\nVacant dispositions\t(34)\nProperties available for lease at December 31 2020\t140\n", "q10k_tbl_6": "Year ended December 31 2020\t\nProperties available for lease at December 31 2019\t94\nLease expirations (1)\t446\nRe-leases to same client (2)\t(296)\nRe-leases to new client (2)(3)\t(18)\nVacant dispositions\t(86)\nProperties available for lease at December 31 2020\t140\n", "q10k_tbl_7": "\tMonth Ended October 31 2020\tMonth Ended November 30 2020\tMonth Ended December 31 2020\tQuarter Ended December 31 2020\nContractual rent collected(1) across total portfolio\t93.5%\t93.7%\t93.6%\t93.6%\nContractual rent collected(1) from our top 20 clients(2)\t89.8%\t90.2%\t89.7%\t89.9%\nContractual rent collected(1) from our investment grade clients(3)\t100.0%\t100.0%\t100.0%\t100.0%\n", "q10k_tbl_8": "\tPercentage of Total Contractual Rent Due By Month(1)\t\t\tPercentage of Total Contractual Rent Collected By Month(1)\t\t\n\tDecember 2020\tNovember 2020\tOctober 2020\tDecember 2020\tNovember 2020\tOctober 2020\nU.S.\t\t\t\t\t\t\nAerospace\t0.6%\t0.6%\t0.6%\t0.6%\t0.6%\t0.6%\nApparel stores\t1.3\t1.3\t1.3\t1.3\t1.3\t1.3\nAutomotive collision services\t1.1\t1.1\t1.1\t1.1\t1.1\t1.1\nAutomotive parts\t1.6\t1.6\t1.6\t1.6\t1.6\t1.6\nAutomotive service\t2.7\t2.5\t2.5\t2.7\t2.5\t2.5\nAutomotive tire services\t2.0\t2.0\t2.0\t2.0\t2.0\t2.0\nBeverages\t2.0\t2.0\t2.0\t2.0\t2.0\t2.0\nChild care\t2.1\t2.1\t2.1\t2.1\t2.1\t2.1\nConsumer electronics\t0.2\t0.3\t0.3\t0.2\t0.3\t0.3\nConsumer goods\t0.5\t0.6\t0.6\t0.5\t0.6\t0.6\nConvenience stores\t12.0\t12.1\t12.1\t12.0\t12.0\t12.0\nCrafts and novelties\t0.9\t0.9\t0.9\t0.9\t0.9\t0.9\nDiversified industrial\t0.8\t0.8\t0.6\t0.8\t0.8\t0.6\nDollar stores\t7.7\t7.7\t7.7\t7.6\t7.7\t7.7\nDrug stores\t8.2\t8.3\t8.4\t8.2\t8.3\t8.4\nEducation\t0.2\t0.2\t0.2\t0.2\t0.2\t0.2\nElectric utilities\t0.1\t0.1\t0.1\t0.1\t0.1\t0.1\nEntertainment\t0.3\t0.3\t0.3\t0.3\t0.3\t0.3\nEquipment services\t0.3\t0.3\t0.3\t0.3\t0.3\t0.3\nFinancial services\t1.9\t1.9\t1.9\t1.9\t1.9\t1.9\nFood processing\t0.7\t0.7\t0.7\t0.7\t0.7\t0.7\nGeneral merchandise\t3.2\t3.0\t3.0\t3.2\t3.0\t3.0\nGovernment services\t0.6\t0.6\t0.7\t0.6\t0.6\t0.7\nGrocery stores\t4.9\t4.9\t5.0\t4.9\t4.9\t4.9\nHealth and beauty\t0.2\t0.2\t0.2\t0.2\t0.2\t0.2\nHealth and fitness\t6.8\t6.9\t7.0\t5.6\t6.0\t6.1\nHealth care\t1.5\t1.6\t1.6\t1.5\t1.5\t1.6\nHome furnishings\t0.7\t0.7\t0.7\t0.7\t0.7\t0.7\nHome improvement\t3.1\t3.0\t3.0\t3.1\t3.0\t3.0\nMachinery\t0.1\t0.1\t0.1\t0.1\t0.1\t0.1\nMotor vehicle dealerships\t1.6\t1.6\t1.6\t1.6\t1.6\t1.6\nOffice supplies\t0.2\t0.2\t0.2\t0.1\t0.1\t0.1\nOther manufacturing\t0.4\t0.6\t0.6\t0.4\t0.6\t0.6\nPackaging\t0.9\t0.9\t0.9\t0.9\t0.9\t0.9\nPaper\t0.1\t0.1\t0.1\t0.1\t0.1\t0.1\nPet supplies and services\t0.7\t0.7\t0.7\t0.7\t0.7\t0.7\nRestaurants - casual dining\t2.9\t2.9\t2.9\t2.7\t2.8\t2.8\nRestaurants - quick service\t5.3\t5.5\t5.6\t5.3\t5.5\t5.6\nShoe stores\t0.2\t0.2\t0.2\t0.2\t0.2\t0.2\nSporting goods\t0.7\t0.7\t0.7\t0.7\t0.7\t0.7\nTelecommunications\t0.5\t0.5\t0.5\t0.5\t0.5\t0.5\nTheaters\t5.6\t5.7\t5.7\t0.8\t0.7\t0.5\nTransportation services\t4.0\t4.1\t4.1\t4.0\t4.1\t4.1\nWholesale clubs\t2.5\t2.5\t2.5\t2.5\t2.5\t2.5\nOther\t0.1\t*\t0.2\t0.1\t*\t0.2\nTotal U.S.\t94.0%\t94.6%\t95.1%\t87.6%\t88.3%\t88.6%\nU.K.\t\t\t\t\t\t\nGrocery stores\t4.8\t4.3\t3.9\t4.8\t4.3\t3.9\nHealth care\t0.1\t0.1\t0.1\t0.1\t0.1\t0.1\nHome improvement\t1.1\t1.0\t0.9\t1.1\t1.0\t0.9\nTheaters\t*\t*\t*\t0\t0\t0\nTotal U.K.\t6.0%\t5.4%\t4.9%\t6.0%\t5.4%\t4.9%\nTotals\t100.0%\t100.0%\t100.0%\t93.6%\t93.7%\t93.5%\n", "q10k_tbl_9": "\tYear Ended December 31\t\t\n\t2020\t2019\t% Increase/ (decrease)\nTotal revenue\t1651.6\t1491.6\t10.7%\nNet income available to common stockholders (1)\t395.5\t436.5\t(9.4)%\nNet income per share (2)\t1.14\t1.38\t(17.4)%\nFFO available to common stockholders\t1142.1\t1039.6\t9.9%\nFFO per share (2)\t3.31\t3.29\t0.6%\nAFFO available to common stockholders\t1172.6\t1050.0\t11.7%\nAFFO per share (2)\t3.39\t3.32\t2.1%\n", "q10k_tbl_10": "Age\t% of our Workforce\nUnder 30 years old\t21%\nBetween 30 and 50 years old\t57%\nOver 50 years old\t22%\nEthnicity\t\nAsian\t13%\nBlack or African American\t4%\nHispanic or Latino\t11%\nCaucasian\t68%\nTwo or more races\t4%\nIn addition 22% of our Board of Directors identify as women and 44% identify as ethnically diverse.\t\n", "q10k_tbl_11": "Percentage of Total Portfolio Annualized Contractual Rent by Industry\t\t\t\t\t\n\tAs of\t\t\t\t\n\tDec 31 2020\tDec 31 2019\tDec 31 2018\tDec 31 2017\tDec 31 2016\nU.S.\t\t\t\t\t\nAerospace\t0.6%\t0.8%\t0.9%\t1.0%\t1.1%\nApparel stores\t1.3\t1.1\t1.2\t1.4\t1.7\nAutomotive collision services\t1.1\t1.0\t0.9\t1.0\t1.0\nAutomotive parts\t1.6\t1.6\t1.7\t1.5\t1.3\nAutomotive service\t2.7\t2.6\t2.3\t2.5\t2.0\nAutomotive tire services\t2.0\t2.1\t2.3\t2.5\t2.6\nBeverages\t2.1\t2.0\t2.4\t2.6\t2.8\nChild care\t2.1\t2.1\t2.2\t1.7\t1.7\nConsumer electronics\t0.3\t0.3\t0.3\t0.3\t0.3\nConsumer goods\t0.6\t0.6\t0.7\t0.7\t0.9\nConvenience stores\t11.9\t12.3\t12.6\t9.3\t10.0\nCrafts and novelties\t0.9\t0.6\t0.6\t0.6\t0.5\nDiversified industrial\t0.8\t0.7\t0.8\t0.8\t0.9\nDollar stores\t7.6\t7.9\t7.3\t7.5\t8.0\nDrug stores\t8.2\t8.8\t9.4\t10.2\t10.8\nEducation\t0.2\t0.2\t0.3\t0.3\t0.3\nElectric utilities\t0.1\t0.1\t0.1\t0.1\t0.1\nEntertainment\t0.3\t0.3\t0.3\t0.4\t0.4\nEquipment services\t0.3\t0.4\t0.4\t0.4\t0.5\nFinancial services\t1.8\t2.0\t2.4\t2.3\t2.6\nFood processing\t0.7\t0.7\t0.5\t0.6\t1.0\nGeneral merchandise\t3.4\t2.5\t2.1\t2.3\t1.9\nGovernment services\t0.6\t0.7\t0.9\t0.9\t1.0\nGrocery stores\t4.9\t5.2\t5.0\t5.3\t3.5\nHealth and beauty\t0.2\t0.2\t0.2\t*\t*\nHealth and fitness\t6.7\t7.0\t7.1\t7.7\t7.6\nHealth care\t1.5\t1.6\t1.6\t1.4\t1.5\nHome furnishings\t0.7\t0.8\t0.8\t0.9\t0.9\nHome improvement\t3.1\t2.9\t2.8\t2.9\t2.5\nMachinery\t0.1\t0.1\t0.1\t0.1\t0.1\nMotor vehicle dealerships\t1.6\t1.6\t1.8\t2.0\t2.0\nOffice supplies\t0.1\t0.2\t0.2\t0.2\t0.3\nOther manufacturing\t0.4\t0.6\t0.7\t0.8\t0.8\nPackaging\t0.9\t0.8\t1.0\t1.1\t0.9\nPaper\t0.1\t0.1\t0.1\t0.1\t0.1\nPet supplies and services\t0.7\t0.7\t0.5\t0.6\t0.6\nRestaurants - casual dining\t2.8\t3.2\t3.3\t3.6\t3.7\nRestaurants - quick service\t5.3\t5.8\t6.3\t5.2\t4.8\nShoe stores\t0.2\t0.2\t0.5\t0.6\t0.6\nSporting goods\t0.7\t0.8\t0.9\t1.0\t1.5\nTelecommunications\t0.5\t0.5\t0.6\t0.6\t0.7\nTheaters\t5.6\t6.1\t5.3\t5.7\t4.6\nTransportation services\t3.9\t4.3\t5.0\t5.4\t5.7\nWholesale clubs\t2.4\t2.5\t2.9\t3.1\t3.4\nOther\t0.2\t0.7\t0.7\t0.8\t0.8\nTotal U.S.\t93.8%\t97.3%\t100.0%\t100.0%\t100.0%\nU.K.\t\t\t\t\t\nGrocery stores\t4.9\t2.7\t0\t0\t0\nHealth care\t0.1\t0\t0\t0\t0\nHome improvement\t1.2\t0\t0\t0\t0\nTheaters\t*\t*\t0\t0\t0\nTotal U.K.\t6.2%\t2.7%\t-%\t-%\t-%\nTotals\t100.0%\t100.0%\t100.0%\t100.0%\t100.0%\n", "q10k_tbl_12": "Property Type\tNumber of Properties\tApproximate Leasable Square Feet (1)\tTotal Portfolio Annualized Contractual Rent as of December 31 2020\tPercentage of Total Portfolio Annualized Contractual Rent\nRetail\t6419\t79227800\t1409959\t84.4%\nIndustrial\t115\t28206300\t182004\t10.9\nOffice\t43\t3175700\t51308\t3.1\nAgriculture\t15\t184500\t27113\t1.6\nTotals\t6592\t110794300\t1670384\t100.0%\n", "q10k_tbl_13": "Client\tNumber of Leases\tPercentage of Total Portfolio Annualized Contractual Rent\nWalgreens\t248\t5.7%\n7-Eleven\t432\t4.8%\nDollar General\t787\t4.3%\nFedEx\t41\t3.7%\nDollar Tree / Family Dollar\t550\t3.3%\nLA Fitness\t56\t3.1%\nSainsbury's\t18\t3.0%\nWal-Mart / Sam's Club\t58\t2.9%\nRegal Cinemas (Cineworld)\t41\t2.7%\nAMC Theaters\t32\t2.7%\nLifetime Fitness\t16\t2.4%\nCircle K (Couche-Tard)\t277\t1.8%\nBJ's Wholesale Clubs\t15\t1.7%\nTreasury Wine Estates\t17\t1.6%\nCVS Pharmacy\t88\t1.5%\nSpeedway (Marathon)\t161\t1.5%\nKroger\t22\t1.5%\nTesco\t10\t1.4%\nHome Depot\t22\t1.3%\nGPM Investments / Fas Mart\t202\t1.3%\nTotals\t3093\t52.2%\n", "q10k_tbl_14": "Total Portfolio(1)\t\t\t\t\t\n\tExpiring Leases\t\tApproximate Leasable\tTotal Portfolio Annualized Contractual Rent as of December 31 2020\tPercentage of Total Portfolio Annualized Contractual Rent\nYear\tRetail\tNon-Retail\tSquare Feet\n2021\t178\t10\t1491300\t28832\t1.7%\n2022\t372\t21\t8339600\t78637\t4.7\n2023\t545\t24\t9751500\t121418\t7.3\n2024\t418\t17\t7768600\t98186\t5.9\n2025\t507\t21\t7913500\t122585\t7.3\n2026\t374\t10\t6731800\t89150\t5.3\n2027\t432\t4\t6507400\t88054\t5.3\n2028\t590\t14\t11789800\t136826\t8.2\n2029\t541\t6\t9277800\t131580\t7.9\n2030\t227\t12\t6856200\t78966\t4.7\n2031\t253\t15\t6799500\t114831\t6.9\n2032\t304\t12\t4898100\t101673\t6.1\n2033\t288\t4\t3894200\t71124\t4.3\n2034\t304\t3\t5239200\t125685\t7.5\n2035\t258\t0\t2181600\t62335\t3.7\n2036-2046\t765\t7\t9158200\t220502\t13.2\nTotals\t6356\t180\t108598300\t1670384\t100.0%\n", "q10k_tbl_15": "Location\tNumber of Properties\tPercent Leased\tApproximate Leasable Square Feet\tTotal Portfolio Annualized Contractual Rent as of December 31 2020\tPercentage of Total Portfolio Annualized Contractual Rent\nAlabama\t225\t95%\t2127700\t30754\t1.8%\nAlaska\t3\t100\t274600\t2148\t0.1\nArizona\t152\t99\t2082200\t31380\t1.9\nArkansas\t100\t97\t1178800\t14419\t0.9\nCalifornia\t238\t98\t7398100\t147067\t8.8\nColorado\t98\t94\t1575200\t23500\t1.4\nConnecticut\t18\t89\t1274100\t12907\t0.8\nDelaware\t19\t100\t101400\t3132\t0.2\nFlorida\t430\t98\t4981400\t87988\t5.3\nGeorgia\t296\t99\t4546100\t59553\t3.6\nIdaho\t14\t93\t103200\t1748\t0.1\nIllinois\t299\t95\t7703900\t96369\t5.8\nIndiana\t200\t100\t2556000\t40333\t2.4\nIowa\t46\t91\t2527800\t18182\t1.1\nKansas\t118\t98\t2206600\t24807\t1.5\nKentucky\t94\t99\t1826100\t22184\t1.3\nLouisiana\t136\t97\t1953200\t25595\t1.5\nMaine\t27\t100\t277800\t5721\t0.3\nMaryland\t38\t100\t1494000\t25743\t1.5\nMassachusetts\t58\t95\t881400\t17082\t1.0\nMichigan\t243\t100\t2752200\t42837\t2.6\nMinnesota\t176\t99\t2357400\t44713\t2.7\nMississippi\t188\t95\t2029800\t22826\t1.4\nMissouri\t186\t94\t2962100\t39114\t2.3\nMontana\t12\t100\t89100\t2238\t0.1\nNebraska\t61\t98\t862300\t8846\t0.5\nNevada\t26\t96\t1239300\t9204\t0.6\nNew Hampshire\t14\t100\t321500\t6058\t0.4\nNew Jersey\t80\t99\t1271000\t29992\t1.8\nNew Mexico\t58\t100\t495500\t8577\t0.5\nNew York\t139\t98\t3164400\t69359\t4.2\nNorth Carolina\t207\t99\t3493800\t51160\t3.1\nNorth Dakota\t8\t75\t126900\t1321\t0.1\nOhio\t341\t98\t6765000\t69258\t4.0\nOklahoma\t190\t99\t2368500\t32147\t1.9\nOregon\t31\t100\t665100\t11965\t0.7\nPennsylvania\t211\t99\t2217000\t44495\t2.7\nRhode Island\t3\t100\t158000\t2582\t0.2\nSouth Carolina\t179\t98\t1816700\t35507\t2.1\nSouth Dakota\t21\t81\t254700\t2584\t0.2\nTennessee\t261\t98\t3854700\t49839\t3.0\nTexas\t831\t99\t11691500\t176716\t10.5\nUtah\t23\t100\t949700\t9980\t0.6\nVermont\t1\t100\t65500\t1212\t0.1\nVirginia\t219\t99\t3418300\t45136\t2.7\nWashington\t51\t98\t956700\t15915\t1.0\nWest Virginia\t37\t97\t537500\t7120\t0.4\nWisconsin\t131\t98\t3044400\t32972\t2.0\nWyoming\t9\t100\t63900\t1520\t0.1\nPuerto Rico\t4\t100\t28300\t859\t*\nU.K.\t42\t100\t3703900\t103720\t6.2\nTotals\\Average\t6592\t98%\t110794300\t1670384\t100.0%\n", "q10k_tbl_16": "\tPrice Per Share of Common Stock\t\tDistributions\n\tHigh\tLow\tDeclared (1)\n2020\t\t\t\nFirst Quarter\t84.92\t38.00\t0.6980\nSecond Quarter\t65.56\t43.41\t0.6995\nThird Quarter\t66.80\t56.33\t0.7010\nFourth Quarter\t65.09\t57.09\t0.7025\nTotal\t\t\t2.8010\n2019\t\t\t\nFirst Quarter\t74.14\t61.60\t0.6770\nSecond Quarter\t73.94\t66.21\t0.6785\nThird Quarter\t77.50\t67.70\t0.6800\nFourth Quarter\t82.17\t71.45\t0.6815\nTotal\t\t\t2.7170\n", "q10k_tbl_17": "As of or for the Years Ended December 31\t2020\t2019\t2018\t2017\t2016\nTotal assets (book value)\t20740285\t18554796\t15260483\t14058166\t13152871\nCash and cash equivalents\t824476\t54011\t10387\t6898\t9420\nTotal debt\t8817467\t7901547\t6499976\t6111471\t5839605\nTotal liabilities\t9722555\t8750638\t7139505\t6667458\t6365818\nTotal equity\t11017730\t9804158\t8120978\t7390708\t6787053\nNet cash provided by operating activities\t1115543\t1068937\t940742\t875850\t799863\nNet change in cash cash equivalents and restricted cash\t779674\t49934\t8929\t(3539)\t(34652)\nTotal revenue\t1651625\t1491591\t1327838\t1215768\t1103172\nNet income\t396506\t437478\t364598\t319318\t316477\nPreferred stock dividends\t0\t0\t0\t(3911)\t(27080)\nExcess of redemption value over carrying value of preferred shares redeemed\t0\t0\t0\t(13373)\t0\nNet income available to common stockholders\t395486\t436482\t363614\t301514\t288491\nCash distributions paid to common stockholders\t964167\t852134\t761582\t689294\t610516\nNet income per common share:\t\t\t\t\t\nBasic\t1.15\t1.38\t1.26\t1.10\t1.13\nDiluted\t1.14\t1.38\t1.26\t1.10\t1.13\nCash distributions paid per common share\t2.794000\t2.710500\t2.630500\t2.527000\t2.391500\nCash distributions declared per common share\t2.801000\t2.717000\t2.639000\t2.537000\t2.403000\nBasic weighted average number of common shares outstanding\t345280126\t315837012\t289427430\t273465680\t255066500\nDiluted weighted average number of common shares outstanding\t345415258\t316159277\t289923984\t273936752\t255624250\n", "q10k_tbl_18": "3.250% notes $450 issued in October 2012 and $500 issued in December 2017 both due in October 2022 (1)\t950\n4.650% notes issued in July 2013 and due in August 2023\t750\n3.875% notes issued in June 2014 and due in July 2024\t350\n3.875% notes issued in April 2018 and due in April 2025\t500\n0.750% notes issues December 2020 and due in March 2026\t325\n4.125% notes $250 issued in September 2014 and $400 issued in March 2017 both due in October 2026\t650\n3.000% notes issued in October 2016 and due in January 2027\t600\n3.650% notes issued in December 2017 and due in January 2028\t550\n3.250% notes issued in June 2019 and due in June 2029\t500\n1.625% notes issued in October 2020 and due December 2030 (2)\t547\n3.250% notes $600 issued in May 2020 and $350 issued in July 2020 both due in January 2031\t950\n1.800% notes issued in December 2020 and due in March 2033\t400\n2.730% notes issued in May 2019 and due in May 2034 (2)\t431\n5.875% bonds $100 issued in March 2005 and $150 issued in June 2011 both due in March 2035\t250\n4.650% notes $300 issued in March 2017 and $250 issued in December 2017 both due in March 2047\t550\nTotal principal amount\t8303\nUnamortized net original issuance premiums and deferred financing costs\t(35)\n\t8268\n", "q10k_tbl_19": "2020 Issuances\tDate of Issuance\tMaturity date\tPrincipal amount issued\tPrice of par value\tEffective yield to maturity\n3.250% notes\tMay 2020\tJanuary 2031\t600\t98.99%\t3.36%\n3.250% notes\tJuly 2020\tJanuary 2031\t350\t108.24%\t2.34%\n1.625% notes\tOctober 2020\tDecember 2030\t£400\t99.19%\t1.71%\n0.750% notes\tDecember 2020\tMarch 2026\t325\t99.19%\t0.91%\n1.800% notes\tDecember 2020\tMarch 2033\t400\t98.47%\t1.94%\n", "q10k_tbl_20": "Note Covenants\tRequired\tActual\nLimitation on incurrence of total debt\t< 60% of adjusted assets\t39.6%\nLimitation on incurrence of secured debt\t< 40% of adjusted assets\t1.4%\nDebt service coverage (trailing 12 months)(1)\t> 1.5 x\t5.1\nMaintenance of total unencumbered assets\t> 150% of unsecured debt\t256.7%\n", "q10k_tbl_21": "Net income available to common stockholders\t395486\nPlus: interest expense excluding the amortization of deferred financing costs\t299015\nPlus: loss on extinguishment of debt\t9819\nPlus: provision for taxes\t14693\nPlus: depreciation and amortization\t677038\nPlus: provisions for impairment\t147232\nPlus: pro forma adjustments\t71574\nLess: gain on sales of real estate\t(76232)\nIncome available for debt service as defined\t1538625\nTotal pro forma debt service charge\t304552\nDebt service and fixed charge coverage ratio\t5.1\n", "q10k_tbl_22": "Year of Maturity\tCredit Facility and Commercial Paper Program(1)\tNotes and Bonds(2)\tTerm Loan(3)\tMortgages Payable (4)\tInterest (5)\tGround Leases Paid by Realty Income(6)\tGround Leases Paid by Our Clients(7)\tOther(8)\tTotals\n2021\t0\t0\t0\t44.2\t302.3\t1.6\t13.7\t106.8\t468.6\n2022\t0\t950.0\t0\t111.8\t301.6\t1.6\t13.6\t0\t1378.6\n2023\t0\t750.0\t0\t20.6\t266.6\t1.6\t13.7\t0\t1052.5\n2024\t0\t350.0\t250.0\t112.2\t223.2\t1.6\t13.8\t0\t950.8\n2025\t0\t500.0\t0\t0.7\t192.9\t1.4\t13.5\t0\t708.5\nThereafter\t0\t5752.4\t0\t10.1\t1222.4\t18.8\t55.9\t0\t7059.6\nTotals\t0\t8302.4\t250.0\t299.6\t2509.0\t26.6\t124.2\t106.8\t11618.6\n", "q10k_tbl_23": "\tNumber of Properties\tLeasable Square Feet\tInvestment ($ in thousands)\tWeighted Average Lease Term (Years)\tInitial Average Cash Lease Yield (1)\nYear ended December 31 2020 (2)\t\t\t\t\t\nAcquisitions - U.S. (in 30 states)\t202\t5476009\t1302220\t14.9\t5.8%\nAcquisitions - U.K. (3)\t24\t2120256\t920934\t10.8\t6.1%\nTotal Acquisitions\t226\t7596265\t2223154\t13.2\t5.9%\nProperties under Development - U.S.\t18\t1601095\t84127\t15.3\t5.6%\nTotal (4)\t244\t9197360\t2307281\t13.2\t5.9%\n", "q10k_tbl_24": "Three months ended December 31 2020\t\nProperties available for lease at September 30 2020\t92\nLease expirations (1)\t159\nRe-leases to same client (2)\t(72)\nRe-leases to new client (2)(3)\t(5)\nVacant dispositions\t(34)\nProperties available for lease at December 31 2020\t140\n", "q10k_tbl_25": "Year ended December 31 2020\t\nProperties available for lease at December 31 2019\t94\nLease expirations (1)\t446\nRe-leases to same client (2)\t(296)\nRe-leases to new client (2)(3)\t(18)\nVacant dispositions\t(86)\nProperties available for lease at December 31 2020\t140\n", "q10k_tbl_26": "\tMonth\tMonth\tDividend\tIncrease\n2020 Dividend increases\tDeclared\tPaid\tper share\tper share\n1st increase\tDec 2019\tJan 2020\t0.2275\t0.0005\n2nd increase\tJan 2020\tFeb 2020\t0.2325\t0.0050\n3rd increase\tMar 2020\tApr 2020\t0.2330\t0.0005\n4th increase\tJun 2020\tJul 2020\t0.2335\t0.0005\n5th increase\tSep 2020\tOct 2020\t0.2340\t0.0005\n2021 Dividend increases\t\t\t\t\n1st increase\tDec 2020\tJan 2021\t0.2345\t0.0005\n", "q10k_tbl_27": "\t\t\t\tIncrease\t\n\t2020\t2019\t2018\t2020 versus 2019\t2019 versus 2018\nREVENUE\t\t\t\t\t\nRental (excluding reimbursable)\t1560171\t1415733\t1274596\t144438\t141137\nRental (reimbursable)\t79362\t69085\t46950\t10277\t22135\nOther\t12092\t6773\t6292\t5319\t481\nTotal revenue\t1651625\t1491591\t1327838\t160034\t163753\n", "q10k_tbl_28": "\t\t\tYear Ended December 31\t\tIncrease/(Decrease)\t\n\tNumber of Properties\tSquare Footage\t2020\t2019\t Change\t% Change\nProperties acquired during 2020 & 2019\t1014\t22388061\t282038\t85039\t196999\t231.7%\nSame store rental revenue\t5403\t84641826\t1237358\t1259303\t(21945)\t(1.7)%\nProperties sold during 2020 & 2019\t221\t4234228\t6567\t22389\t(15822)\t(70.7)%\nStraight-line rent and other non-cash adjustments\tN/A\tN/A\t7384\t15177\t(7793)\t(51.3)%\nVacant rents development and other (1)\t180\t3916555\t26824\t33825\t(7001)\t(20.7)%\nTotals\t\t\t1560171\t1415733\t144438\t10.2%\n", "q10k_tbl_29": "\t\t\tYear Ended December 31\t\tIncrease/(Decrease)\t\n\tNumber of Properties\tSquare Footage\t2019\t2018\t Change\t% Change\nProperties acquired during 2019 & 2018\t1532\t18219735\t197784\t54028\t143756\t266.1%\nSame store rental revenue\t4811\t83399809\t1175576\t1157577\t17999\t1.6%\nProperties sold during 2019 & 2018\t221\t1933496\t3615\t19306\t(15691)\t(81.3)%\nStraight-line rent and other non-cash adjustments\tN/A\tN/A\t13821\t16993\t(3172)\t(18.7)%\nVacant rents development and other (1)\t140\t4653664\t24937\t26692\t(1755)\t(6.6)%\nTotals\t\t\t1415733\t1274596\t141137\t11.1%\n", "q10k_tbl_30": "\tYear ended December 31\t\t\n\t2020\t2019\t2018\nRental revenue reserves\t44.1\t1.4\t1.1\nStraight-line rent reserves\t8.4\t1.5\t0.2\nTotal rental revenue reserves\t52.5\t2.9\t1.3\n", "q10k_tbl_31": "\t\t\t\tIncrease (Decrease)\t\n\t2020\t2019\t2018\t2020 versus 2019\t2019 versus 2018\nEXPENSES\t\t\t\t\t\nDepreciation and amortization\t677038\t593961\t539780\t83077\t54181\nInterest\t309336\t290991\t266020\t18345\t24971\nProperty (excluding reimbursable)\t25241\t19500\t19376\t5741\t124\nProperty (reimbursable)\t79362\t69085\t46950\t10277\t22135\nGeneral and administrative (1)\t73215\t66483\t84148\t6732\t(17665)\nIncome taxes\t14693\t6158\t5340\t8535\t818\nProvisions for impairment\t147232\t40186\t26269\t107046\t13917\nTotal expenses\t1326117\t1086364\t987883\t239753\t98481\nTotal revenue (2)\t1572263\t1422506\t1280888\t\t\nGeneral and administrative expenses as a percentage of total revenue (1)(2)\t4.4%\t4.7%\t5.1%\t\t\nProperty expenses (excluding reimbursable) as a percentage of total revenue (2)\t1.6%\t1.4%\t1.5%\t\t\n", "q10k_tbl_32": "\t2020\t2019\t2018\nInterest on our credit facility commercial paper term loans notes mortgages and interest rate swaps\t293879\t277802\t260103\nCredit facility commitment fees\t3812\t3803\t2774\nAmortization of debt origination and deferred financing costs\t10694\t9485\t8711\nLoss (gain) on interest rate swaps\t4132\t2752\t(2733)\nAmortization of net mortgage premiums\t(1258)\t(1415)\t(1520)\nAmortization of net note premiums\t(1754)\t(995)\t(1256)\nOther items\t(169)\t(441)\t(59)\nInterest expense\t309336\t290991\t266020\nCredit facility commercial paper term loans mortgages and notes\t\t\t\nAverage outstanding balances (dollars in thousands)\t8240829\t7100032\t6662952\nAverage interest rates\t3.48%\t3.89%\t3.90%\n", "q10k_tbl_33": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTotal provisions for impairment\t147.2\t40.2\t26.3\nNumber of properties:\t\t\t\nClassified as held for sale\t6\t1\t0\nClassified as held for investment\t42\t5\t3\nSold\t51\t45\t41\n", "q10k_tbl_34": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nNumber of properties sold\t126\t93\t128\nNet sales proceeds\t262.5\t108.9\t142.3\nGain on sales of real estate\t76.2\t30.0\t24.6\n", "q10k_tbl_35": "\tYear Ended December 31\t\t\t% Increase/(decrease)\t\n\t2020\t2019\t2018\t2020 versus 2019\t2019 versus 2018\nNet income available to common stockholders\t395.5\t436.5\t363.6\t(9.4)%\t20.0%\nNet income per share (1)\t1.14\t1.38\t1.26\t(17.4)%\t9.5%\n", "q10k_tbl_36": "\tFor the Quarter Ended December 31\t\t\nDollars in thousands\t2020\t2019\t2018\nNet income (1)\t118150\t129553\t85303\nInterest\t78764\t75073\t70635\nIncome taxes\t4500\t1736\t1607\nDepreciation and amortization\t175041\t156594\t137711\nExecutive severance charge (2)\t0\t0\t18651\nProvisions for impairment\t23790\t8950\t1235\nGain on sales of real estate\t(22667)\t(14168)\t(5825)\nForeign currency and derivative gains net\t(3311)\t(1792)\t0\nQuarterly Adjusted EBITDAre\t374267\t355946\t309317\nAnnualized Adjusted EBITDAre (3)\t1497068\t1423784\t1237268\nAnnualized Pro Forma Adjustments\t25910\t77793\t11306\nAnnualized Pro Forma Adjusted EBITDAre\t1522978\t1501577\t1248574\nNet Debt (4)\t7992991\t7847536\t6489589\nNet Debt/Adjusted EBITDAre\t5.3\t5.5\t5.2\nNet Debt/Pro forma Adjusted EBITDAre\t5.2\t5.2\t5.2\n", "q10k_tbl_37": "Dollars in thousands\t2020\t2019\t2018\nAnnualized pro forma adjustments from properties acquired or stabilized\t27431\t77431\t14633\nAnnualized pro forma adjustments from properties disposed\t(1521)\t362\t(3327)\nAnnualized Pro forma Adjustments\t25910\t77793\t11306\n", "q10k_tbl_38": "\t\t\t\t% Increase\t\n\t2020\t2019\t2018\t2020 versus 2019\t2019 versus 2018\nFFO available to common stockholders\t1142.1\t1039.6\t903.3\t9.9%\t15.1%\nFFO per share (1)\t3.31\t3.29\t3.12\t0.6%\t5.4%\n", "q10k_tbl_39": "\t2020\t2019\t2018\nNet income available to common stockholders\t395486\t436482\t363614\nDepreciation and amortization\t677038\t593961\t539780\nDepreciation of furniture fixtures and equipment\t(588)\t(565)\t(650)\nProvisions for impairment\t147232\t40186\t26269\nGain on sales of real estate\t(76232)\t(29996)\t(24643)\nFFO adjustments allocable to noncontrolling interests\t(817)\t(477)\t(1113)\nFFO available to common stockholders\t1142119\t1039591\t903257\nFFO allocable to dilutive noncontrolling interests\t1418\t1403\t867\nDiluted FFO\t1143537\t1040994\t904124\nFFO per common share basic and diluted\t3.31\t3.29\t3.12\nDistributions paid to common stockholders\t964167\t852134\t761582\nFFO available to common stockholders in excess of distributions paid to common stockholders\t177952\t187457\t141675\nWeighted average number of common shares used for computation per share:\t\t\t\nBasic\t345280126\t315837012\t289427430\nDiluted\t345878377\t316601350\t289923984\n", "q10k_tbl_40": "\t\t\t\t% Increase\t\n\t2020\t2019\t2018\t2020 versus 2019\t2019 versus 2018\nAFFO available to common stockholders\t1172.6\t1050.0\t924.6\t11.7%\t13.6%\nAFFO per share (1)\t3.39\t3.32\t3.19\t2.1%\t4.1%\n", "q10k_tbl_41": "\t2020\t2019\t2018\nNet income available to common stockholders (1)\t395486\t436482\t363614\nCumulative adjustments to calculate FFO (2)\t746633\t603109\t539643\nFFO available to common stockholders\t1142119\t1039591\t903257\nExecutive severance charge (3)\t3463\t0\t18651\nLoss on extinguishment of debt\t9819\t0\t0\nAmortization of share-based compensation\t14727\t13662\t15470\nAmortization of deferred financing costs (4)\t4968\t4754\t3991\nAmortization of net mortgage premiums\t(1258)\t(1415)\t(1520)\nLoss (gain) on interest rate swaps\t4353\t2752\t(2733)\nStraight-line payments from cross-currency swaps (5)\t2573\t4316\t0\nLeasing costs and commissions\t(1859)\t(2102)\t(3907)\nRecurring capital expenditures\t(198)\t(801)\t(1084)\nStraight-line rent\t(26502)\t(28674)\t(24687)\nAmortization of above and below-market leases\t22940\t19336\t16852\nOther adjustments (6)\t(2519)\t(1404)\t268\nTotal AFFO available to common stockholders\t1172626\t1050015\t924558\nAFFO allocable to dilutive noncontrolling interests\t1438\t1442\t901\nDiluted AFFO\t1174064\t1051457\t925459\nAFFO per common share:\t\t\t\nBasic\t3.40\t3.32\t3.19\nDiluted\t3.39\t3.32\t3.19\nDistributions paid to common stockholders\t964167\t852134\t761582\nAFFO available to common stockholders in excess of distributions paid to common stockholders\t208459\t197881\t162976\nWeighted average number of common shares used for computation per share:\t\t\t\nBasic\t345280126\t315837012\t289427430\nDiluted\t345878377\t316601350\t289923984\n", "q10k_tbl_42": "Year of maturity\tFixed rate debt\tWeighted average rate on fixed rate debt\n2021\t44.2\t5.55%\n2022\t1061.8\t3.43\n2023\t770.6\t4.64\n2024\t712.2\t3.97\n2025\t500.7\t3.88\nThereafter\t5762.5\t3.18\nTotals (1)\t8852.0\t3.45%\nFair Value (2)\t9883.4\t\n", "q10k_tbl_43": "A.\tReports of Independent Registered Public Accounting Firm\nB.\tConsolidated Balance Sheets December 31 2020 and 2019\nC.\tConsolidated Statements of Income and Comprehensive Income Years ended December 31 2020 2019 and 2018\nD.\tConsolidated Statements of Equity Years ended December 31 2020 2019 and 2018\nE.\tConsolidated Statements of Cash Flows Years ended December 31 2020 2019 and 2018\nF.\tNotes to Consolidated Financial Statements\nG.\tConsolidated Quarterly Financial Data (unaudited) for 2020 and 2019\nH.\tSchedule III Real Estate and Accumulated Depreciation\n\tSchedules not filed: All schedules other than that indicated in the Table of Contents have been omitted as the required information is either not material inapplicable or the information is presented in the financial statements or related notes.\n", "q10k_tbl_44": "\t2020\t2019\nASSETS\t\t\nReal estate held for investment at cost:\t\t\nLand\t6318926\t5684034\nBuildings and improvements\t14696712\t13833882\nTotal real estate held for investment at cost\t21015638\t19517916\nLess accumulated depreciation and amortization\t(3549486)\t(3117919)\nReal estate held for investment net\t17466152\t16399997\nReal estate and lease intangibles held for sale net\t19004\t96775\nCash and cash equivalents\t824476\t54011\nAccounts receivable net\t285701\t181969\nLease intangible assets net\t1710655\t1493383\nOther assets net\t434297\t328661\nTotal assets\t20740285\t18554796\nLIABILITIES AND EQUITY\t\t\nDistributions payable\t85691\t76728\nAccounts payable and accrued expenses\t241336\t177039\nLease intangible liabilities net\t321198\t333103\nOther liabilities\t256863\t262221\nLine of credit payable and commercial paper\t0\t704335\nTerm loans net\t249358\t499044\nMortgages payable net\t300360\t410119\nNotes payable net\t8267749\t6288049\nTotal liabilities\t9722555\t8750638\nCommitments and contingencies\t\t\nStockholders' equity:\t\t\nCommon stock and paid in capital par value $0.01 per share 740200000 shares authorized 361303445 and 333619106 shares issued and outstanding as of December 31 2020 and December 31 2019 respectively\t14700050\t12873849\nDistributions in excess of net income\t(3659933)\t(3082291)\nAccumulated other comprehensive loss\t(54634)\t(17102)\nTotal stockholders' equity\t10985483\t9774456\nNoncontrolling interests\t32247\t29702\nTotal equity\t11017730\t9804158\nTotal liabilities and equity\t20740285\t18554796\n", "q10k_tbl_45": "\t2020\t2019\t2018\nREVENUE\t\t\t\nRental (including reimbursable)\t1639533\t1484818\t1321546\nOther\t12092\t6773\t6292\nTotal revenue\t1651625\t1491591\t1327838\nEXPENSES\t\t\t\nDepreciation and amortization\t677038\t593961\t539780\nInterest\t309336\t290991\t266020\nProperty (including reimbursable)\t104603\t88585\t66326\nGeneral and administrative\t73215\t66483\t84148\nIncome taxes\t14693\t6158\t5340\nProvisions for impairment\t147232\t40186\t26269\nTotal expenses\t1326117\t1086364\t987883\nGain on sales of real estate\t76232\t29996\t24643\nForeign currency and derivative gains net\t4585\t2255\t0\nLoss on extinguishment of debt\t(9819)\t0\t0\nNet income\t396506\t437478\t364598\nNet income attributable to noncontrolling interests\t(1020)\t(996)\t(984)\nNet income available to common stockholders\t395486\t436482\t363614\nAmounts available to common stockholders per common share:\t\t\t\nNet income\t\t\t\nBasic\t1.15\t1.38\t1.26\nDiluted\t1.14\t1.38\t1.26\nWeighted average common shares outstanding:\t\t\t\nBasic\t345280126\t315837012\t289427430\nDiluted\t345415258\t316159277\t289923984\nOther comprehensive income:\t\t\t\nNet income available to common stockholders\t395486\t436482\t363614\nForeign currency translation adjustment\t(2606)\t186\t0\nUnrealized loss on derivatives net\t(34926)\t(9190)\t(8098)\nComprehensive income available to common stockholders\t357954\t427478\t355516\n", "q10k_tbl_46": "\tShares of common stock\tCommon stock and paid in capital\tDistributions in excess of net income\tAccumulated other comprehensive loss\tTotal stockholders' equity\tNoncontrolling interests\tTotal equity\nBalance December 31 2017\t284213685\t9624264\t(2252763)\t0\t7371501\t19207\t7390708\nNet income\t0\t0\t363614\t0\t363614\t984\t364598\nOther comprehensive loss\t0\t0\t0\t(8098)\t(8098)\t0\t(8098)\nDistributions paid and payable\t0\t0\t(768506)\t0\t(768506)\t(1996)\t(770502)\nShare issuances net of costs\t19304878\t1119297\t0\t0\t1119297\t0\t1119297\nContributions by noncontrolling interests\t0\t0\t0\t0\t0\t18848\t18848\nRedemption of common units\t88182\t2829\t0\t0\t2829\t(5581)\t(2752)\nReallocation of equity\t0\t(774)\t0\t0\t(774)\t774\t0\nShare-based compensation net\t135345\t8879\t0\t0\t8879\t0\t8879\nBalance December 31 2018\t303742090\t10754495\t(2657655)\t(8098)\t8088742\t32236\t8120978\nNet income\t0\t0\t436482\t0\t436482\t996\t437478\nOther comprehensive loss\t0\t0\t0\t(9004)\t(9004)\t0\t(9004)\nDistributions paid and payable\t0\t0\t(861118)\t0\t(861118)\t(1296)\t(862414)\nShare issuances net of costs\t29818978\t2117983\t0\t0\t2117983\t0\t2117983\nContributions by noncontrolling interests\t0\t0\t0\t0\t0\t11370\t11370\nRedemption of common units\t0\t(6866)\t0\t0\t(6866)\t(14257)\t(21123)\nReallocation of equity\t0\t(653)\t0\t0\t(653)\t653\t0\nShare-based compensation net\t58038\t8890\t0\t0\t8890\t0\t8890\nBalance December 31 2019\t333619106\t12873849\t(3082291)\t(17102)\t9774456\t29702\t9804158\nNet income\t0\t0\t395486\t0\t395486\t1020\t396506\nOther comprehensive loss\t0\t0\t0\t(37532)\t(37532)\t0\t(37532)\nDistributions paid and payable\t0\t0\t(973128)\t0\t(973128)\t(1596)\t(974724)\nShare issuances net of costs\t27564163\t1817978\t0\t0\t1817978\t0\t1817978\nContributions by noncontrolling interests\t0\t0\t0\t0\t0\t3168\t3168\nReallocation of equity\t0\t47\t0\t0\t47\t(47)\t0\nShare-based compensation net\t120176\t8176\t0\t0\t8176\t0\t8176\nBalance December 31 2020\t361303445\t14700050\t(3659933)\t(54634)\t10985483\t32247\t11017730\n", "q10k_tbl_47": "\t2020\t2019\t2018\nCASH FLOWS FROM OPERATING ACTIVITIES\t\t\t\nNet income\t396506\t437478\t364598\nAdjustments to net income:\t\t\t\nDepreciation and amortization\t677038\t593961\t539780\nLoss on extinguishment of debt\t9819\t0\t0\nAmortization of share-based compensation\t16503\t13662\t27267\nNon-cash revenue adjustments\t(3562)\t(9338)\t(7835)\nAmortization of net premiums on mortgages payable\t(1258)\t(1415)\t(1520)\nAmortization of net premiums on notes payable\t(1754)\t(995)\t(1256)\nAmortization of deferred financing costs\t11003\t9795\t9021\nLoss (gain) on interest rate swaps\t4353\t2752\t(2733)\nForeign currency and derivative gains net\t(4585)\t(2255)\t0\nGain on sales of real estate\t(76232)\t(29996)\t(24643)\nProvisions for impairment on real estate\t147232\t40186\t26269\nChange in assets and liabilities\t\t\t\nAccounts receivable and other assets\t(79240)\t(8954)\t(6901)\nAccounts payable accrued expenses and other liabilities\t19720\t24056\t18695\nNet cash provided by operating activities\t1115543\t1068937\t940742\nCASH FLOWS FROM INVESTING ACTIVITIES\t\t\t\nInvestment in real estate\t(2283130)\t(3572581)\t(1769335)\nImprovements to real estate including leasing costs\t(8708)\t(23536)\t(25350)\nProceeds from sales of real estate\t259459\t108911\t142286\nInsurance and other proceeds received\t0\t0\t7648\nCollection of loans receivable\t0\t0\t5267\nNon-refundable escrow deposits\t0\t(14603)\t(200)\nNet cash used in investing activities\t(2032379)\t(3501809)\t(1639684)\nCASH FLOWS FROM FINANCING ACTIVITIES\t\t\t\nCash distributions to common stockholders\t(964167)\t(852134)\t(761582)\nBorrowings on line of credit and commercial paper program\t3528042\t2816632\t1774000\nPayments on line of credit and commercial paper program\t(4246755)\t(2365368)\t(1632000)\nPrincipal payment on term loan\t(250000)\t(70000)\t(125866)\nProceeds from notes and bonds payable issued\t2200488\t897664\t497500\nPrincipal payment on notes payable\t(250000)\t0\t(350000)\nProceeds from term loan\t0\t0\t250000\nPayments upon extinguishment of debt\t(9445)\t0\t0\nPrincipal payments on mortgages payable\t(108789)\t(20723)\t(21905)\nProceeds from common stock offerings net\t728883\t845061\t0\nProceeds from dividend reinvestment and stock purchase plan\t9109\t8437\t9114\nProceeds from At-the-Market (ATM) program\t1094938\t1264518\t1125364\nRedemption of common units\t0\t(21123)\t(2752)\nDistributions to noncontrolling interests\t(1596)\t(1342)\t(1930)\nNet receipts on derivative settlements\t4106\t4881\t0\nDebt issuance costs\t(19456)\t(9129)\t(18685)\nOther items including shares withheld upon vesting\t(23279)\t(4772)\t(33387)\nNet cash provided by financing activities\t1692079\t2492602\t707871\nEffect of exchange rate changes on cash and cash equivalents\t4431\t(9796)\t0\nNet increase in cash cash equivalents and restricted cash\t779674\t49934\t8929\nCash cash equivalents and restricted cash beginning of year\t71005\t21071\t12142\nCash cash equivalents and restricted cash end of year\t850679\t71005\t21071\n", "q10k_tbl_48": "\t2020\t2019\t2018\nWeighted average shares used for the basic net income per share computation\t345280126\t315837012\t289427430\nIncremental shares from share-based compensation\t135132\t322265\t179532\nWeighted average partnership common units convertible to common shares that were dilutive\t0\t0\t317022\nWeighted average shares used for diluted net income per share computation\t345415258\t316159277\t289923984\nUnvested shares from share-based compensation that were anti-dilutive\t70581\t8113\t13148\nWeighted average partnership common units convertible to common shares that were anti-dilutive\t463119\t442073\t297576\n", "q10k_tbl_49": "\tYear ended December 31\t\t\n\t2020\t2019\t2018\nRental revenue reserves\t44.1\t1.4\t1.1\nStraight-line rent reserves\t8.4\t1.5\t0.2\nTotal rental revenue reserves\t52.5\t2.9\t1.3\n", "q10k_tbl_50": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nTotal provisions for impairment\t147.2\t40.2\t26.3\nNumber of properties:\t\t\t\nClassified as held for sale\t6\t1\t0\nClassified as held for investment\t42\t5\t3\nSold\t51\t45\t41\n", "q10k_tbl_51": "A.\tAccounts Receivable net consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tStraight-line rent receivables net\t174074\t147047\n\tClient receivables net\t111627\t34922\n\t\t285701\t181969\n", "q10k_tbl_52": "B.\tLease intangible assets net consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tIn-place leases\t1840704\t1612153\n\tAccumulated amortization of in-place leases\t(744375)\t(627676)\n\tAbove-market leases\t866567\t710275\n\tAccumulated amortization of above-market leases\t(252241)\t(201369)\n\t\t1710655\t1493383\n", "q10k_tbl_53": "C.\tOther assets net consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tFinancing receivables\t131291\t81892\n\tRight of use asset - financing leases\t118585\t36901\n\tRight of use asset - operating leases net\t112049\t120533\n\tRestricted escrow deposits\t21220\t4529\n\tGoodwill\t14180\t14430\n\tPrepaid expenses\t11795\t11839\n\tCorporate assets net\t8598\t5251\n\tCredit facility origination costs net\t7705\t11453\n\tImpounds related to mortgages payable\t4983\t12465\n\tValue-added tax receivable\t1130\t9682\n\tNon-refundable escrow deposits\t1000\t14803\n\tDerivative assets and receivables - at fair value\t10\t12\n\tOther items\t1751\t4871\n\t\t434297\t328661\n", "q10k_tbl_54": "D.\tAccounts payable and accrued expenses consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tNotes payable - interest payable\t83219\t75114\n\tDerivative liabilities and payables - at fair value\t73356\t26359\n\tProperty taxes payable\t23413\t18626\n\tAccrued costs on properties under development\t12685\t5870\n\tValue-added tax payable\t8077\t13434\n", "q10k_tbl_55": "Accrued income taxes\t5182\t4450\nMortgages term loans and credit line - interest payable and interest rate swaps\t1044\t1729\nOther items\t34360\t31457\n\t241336\t177039\n", "q10k_tbl_56": "E.\tLease intangible liabilities net consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tBelow-market leases\t460895\t447522\n\tAccumulated amortization of below-market leases\t(139697)\t(114419)\n\t\t321198\t333103\n", "q10k_tbl_57": "F.\tOther liabilities consist of the following at:\tDecember 31 2020\tDecember 31 2019\n\tRent received in advance and other deferred revenue\t130231\t127687\n\tLease liability - operating leases net\t114559\t122285\n\tLease liability - financing leases\t6256\t5946\n\tSecurity deposits\t5817\t6303\n\t\t256863\t262221\n", "q10k_tbl_58": "\tNumber of Properties\tLeasable Square Feet\tInvestment ($ in thousands)\tWeighted Average Lease Term (Years)\tInitial Average Cash Lease Yield\nYear Ended December 31 2020 (1)\t\t\t\t\t\nAcquisitions - U.S. (in 30 states)\t202\t5476009\t1302220\t14.9\t5.8%\nAcquisitions - U.K. (2)\t24\t2120256\t920934\t10.8\t6.1%\nTotal Acquisitions\t226\t7596265\t2223154\t13.2\t5.9%\nProperties under Development - U.S.\t18\t1601095\t84127\t15.3\t5.6%\nTotal (3)\t244\t9197360\t2307281\t13.2\t5.9%\n", "q10k_tbl_59": "\tAcquisitions - U.S.\tAcquisitions - U.K.\t\nYear Ended December 31 2020\t(USD)\t(£ Sterling)\t\nLand (1)\t337.5\t£\t247.1\nBuildings and improvements\t768.4\t258.7\t\nLease intangible assets (2)\t203.1\t139.8\t\nOther assets (3)\t52.4\t62.9\t\nLease intangible liabilities (2)\t(12.9)\t(0.7)\t\nOther liabilities (4)\t(0.9)\t0\t\n\t1347.6\t£\t707.8\n", "q10k_tbl_60": "\tNumber of Properties\tLeasable Square Feet\tInvestment ($ in thousands)\tWeighted Average Lease Term (Years)\tInitial Average Cash Lease Yield\nYear Ended December 31 2019 (1)\t\t\t\t\t\nAcquisitions - U.S. (in 45 states)\t753\t11630423\t2860806\t13.0\t6.8%\nAcquisitions - U.K. (2)\t18\t1583676\t797846\t15.6\t5.2%\nTotal Acquisitions\t771\t13214099\t3658652\t13.4\t6.4%\nProperties under Development - U.S.\t18\t522173\t56585\t15.1\t7.3%\nTotal (3)\t789\t13736272\t3715237\t13.5\t6.4%\n", "q10k_tbl_61": "\tAcquisitions - U.S.\tAcquisitions - U.K.\t\nYear Ended December 31 2019\t(USD)\t(£ Sterling)\t\nLand (1)\t780.0\t£\t251.0\nBuildings and improvements\t1776.1\t249.3\t\nLease intangible assets (2)\t290.1\t129.9\t\nOther assets (3)\t82.0\t0\t\nLease intangible liabilities (4)\t(41.9)\t(4.4)\t\nOther liabilities (5)\t(8.4)\t0\t\n\t2877.9\t£\t625.8\n", "q10k_tbl_62": "\tNet decrease to rental revenue\tIncrease to amortization expense\n2021\t(31717)\t138254\n2022\t(30283)\t126762\n2023\t(28745)\t114571\n2024\t(27164)\t105775\n2025\t(26609)\t96398\nThereafter\t(148610)\t514569\nTotals\t(293128)\t1096329\n", "q10k_tbl_63": "As Of\tNumber of Properties(1)\tWeighted Average Stated Interest Rate(2)\tWeighted Average Effective Interest Rate(3)\tWeighted Average Remaining Years Until Maturity\tRemaining Principal Balance\tUnamortized Premium and Deferred Finance Costs Balance net\tMortgage Payable Balance\n12/31/2020\t68\t4.9%\t4.6%\t2.9\t299631\t729\t300360\n12/31/2019\t92\t4.9%\t4.6%\t3.1\t408419\t1700\t410119\n", "q10k_tbl_64": "Year of Maturity\tPrincipal\n2021\t44.2\n2022\t111.8\n2023\t20.6\n2024\t112.2\n2025\t0.7\nThereafter\t10.1\nTotals\t299.6\n", "q10k_tbl_65": "\tDecember 31 2020\tDecember 31 2019\n5.750% notes issued in June 2010 and due in January 2021\t0\t250\n3.250% notes $450 issued in October 2012 and $500 issued in December 2017 both due in October 2022 (1)\t950\t950\n4.650% notes issued in July 2013 and due in August 2023\t750\t750\n3.875% notes issued in June 2014 and due in July 2024\t350\t350\n3.875% notes issued in April 2018 and due in April 2025\t500\t500\n0.750% notes issued December 2020 and due in March 2026\t325\t0\n4.125% notes $250 issued in September 2014 and $400 issued in March 2017 both due in October 2026\t650\t650\n3.000% notes issued in October 2016 and due in January 2027\t600\t600\n3.650% notes issued in December 2017 and due in January 2028\t550\t550\n3.250% notes issued in June 2019 and due in June 2029\t500\t500\n1.625% notes issued in October 2020 and due December 2030 (2)\t547\t0\n3.250% notes $600 issued in May 2020 and $350 issued in July 2020 both due in January 2031\t950\t0\n1.800% notes issued in December 2020 and due in March 2033\t400\t0\n2.730% notes issued in May 2019 and due in May 2034 (2)\t431\t418\n5.875% bonds $100 issued in March 2005 and $150 issued in June 2011 both due in March 2035\t250\t250\n4.650% notes $300 issued in March 2017 and $250 issued in December 2017 both due in March 2047\t550\t550\nTotal principal amount\t8303\t6318\nUnamortized net original issuance premiums and deferred financing costs\t(35)\t(30)\n\t8268\t6288\n", "q10k_tbl_66": "Year of Maturity\tPrincipal\n2022 (1)\t950\n2023\t750\n2024\t350\n2025\t500\nThereafter\t5753\nTotals\t8303\n", "q10k_tbl_67": "2020 Issuances\tDate of Issuance\tMaturity date\tPrincipal amount issued\tPrice of par value\tEffective yield to maturity\n3.250% notes (1)\tMay 2020\tJanuary 2031\t600\t98.99%\t3.36%\n3.250% notes (1)\tJuly 2020\tJanuary 2031\t350\t108.24%\t2.34%\n1.625% notes\tOctober 2020\tDecember 2030\t£400\t99.19%\t1.71%\n0.750% notes\tDecember 2020\tMarch 2026\t325\t99.19%\t0.91%\n1.800% notes\tDecember 2020\tMarch 2033\t400\t98.47%\t1.94%\n", "q10k_tbl_68": "2019 Issuances\t\t\t\t\t\n2.730% notes\tMay 2019\tMay 2034\t£315\t100.00%\t2.73%\n3.250% notes\tJune 2019\tJune 2029\t500\t99.36%\t3.33%\n", "q10k_tbl_69": "2018 Issuance\t\t\t\t\t\n3.875% notes\tApril 2018\tApril 2025\t500\t99.50%\t3.96%\n", "q10k_tbl_70": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nShares of common stock issued under the ATM program\t17724374\t17051456\t19138610\nGross proceeds\t1094.9\t1274.5\t1125.4\n", "q10k_tbl_71": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nShares of common stock issued under the DRSPP program\t149289\t117522\t116268\nGross proceeds\t9.1\t8.4\t9.1\n", "q10k_tbl_72": "\tTau Operating Partnership units(1)\tRealty Income L.P. units(2)\tOther Noncontrolling Interests\tTotal\nCarrying value at December 31 2018\t13356\t17912\t968\t32236\nReallocation of equity\t0\t653\t0\t653\nRedemptions\t(13356)\t0\t(901)\t(14257)\nAdditions to noncontrolling interest\t0\t6286\t5084\t11370\nDistributions\t0\t(1219)\t(77)\t(1296)\nAllocation of net income\t0\t964\t32\t996\nCarrying value at December 31 2019\t0\t24596\t5106\t29702\nReallocation of equity\t0\t(47)\t0\t(47)\nAdditions to noncontrolling interest\t0\t0\t3168\t3168\nDistributions\t0\t(1297)\t(299)\t(1596)\nAllocation of net income\t0\t848\t172\t1020\nCarrying value at December 31 2020\t0\t24100\t8147\t32247\n", "q10k_tbl_73": "\tDecember 31 2020\tDecember 31 2019\nNet real estate\t635963\t654305\nTotal assets\t723668\t744394\nTotal liabilities\t47962\t52087\n", "q10k_tbl_74": "Month\t2020\t2019\t2018\nJanuary\t0.2275\t0.2210\t0.2125\nFebruary\t0.2325\t0.2255\t0.2190\nMarch\t0.2325\t0.2255\t0.2190\nApril\t0.2330\t0.2260\t0.2195\nMay\t0.2330\t0.2260\t0.2195\nJune\t0.2330\t0.2260\t0.2195\nJuly\t0.2335\t0.2265\t0.2200\nAugust\t0.2335\t0.2265\t0.2200\nSeptember\t0.2335\t0.2265\t0.2200\nOctober\t0.2340\t0.2270\t0.2205\nNovember\t0.2340\t0.2270\t0.2205\nDecember\t0.2340\t0.2270\t0.2205\nTotal\t2.7940\t2.7105\t2.6305\n", "q10k_tbl_75": "\t2020\t2019\t2018\nOrdinary income\t2.2798764\t2.1206964\t2.0269173\nNontaxable distributions\t0.4902835\t0.5898036\t0.6035827\nTotal capital gain distribution\t0.0238401\t0\t0\nTotals\t2.7940000\t2.7105000\t2.6305000\n", "q10k_tbl_76": "2021\t1684817\n2022\t1629281\n2023\t1543909\n2024\t1428212\n2025\t1343730\nThereafter\t8371347\nTotals\t16001296\n", "q10k_tbl_77": "\tYear Ended December 31\t\t\n\t2020\t2019\t2018\nNumber of properties\t126\t93\t128\nNet sales proceeds\t262.5\t108.9\t142.3\nGain on sales of real estate\t76.2\t30.0\t24.6\n", "q10k_tbl_78": "At December 31 2020\tCarrying value\tEstimated fair value\nMortgages payable assumed in connection with acquisitions (1)\t299.6\t309.4\nNotes and bonds payable (2)\t8302.4\t9324.0\nAt December 31 2019\tCarrying value\tEstimated fair value\nMortgages payable assumed in connection with acquisitions (1)\t408.4\t417.7\nNotes and bonds payable (2)\t6317.6\t6826.1\n", "q10k_tbl_79": "Derivative Type\tAccounting Classification\tHedge Designation\tNotional Amount\t\tStrike\tEffective Date\tMaturity Date\tFair Value - asset (liability)\t\n\t\t\tDecember 31\tDecember 31\t\t\t\tDecember 31\tDecember 31\n\t\t\t2020\t2019\t\t\t\t2020\t2019\nInterest rate swap (1)\tDerivative\tCash flow\t0\t7.0\t6.03%\t09/25/2012\t09/03/2021\t0\t(0.2)\nInterest rate swap\tDerivative\tCash flow\t0\t250.0\t1.72%\t06/30/2015\t06/30/2020\t0\t(0.1)\nInterest rate swap\tDerivative\tCash flow\t250.0\t250.0\t3.04%\t10/24/2018\t03/24/2024\t(22.6)\t(14.7)\nCross-currency swap (2)\tDerivative\tCash flow\t41.6\t41.6\t(3)\t05/20/2019\t05/22/2034\t(5.2)\t(2.6)\nCross-currency swap (2)\tDerivative\tCash flow\t41.6\t41.6\t(4)\t05/20/2019\t05/22/2034\t(5.1)\t(2.6)\nCross-currency swap (2)\tDerivative\tCash flow\t41.6\t41.6\t(5)\t05/20/2019\t05/22/2034\t(5.4)\t(2.9)\nCross-currency swap (2)\tDerivative\tCash flow\t41.6\t41.6\t(6)\t05/20/2019\t05/22/2034\t(5.7)\t(3.2)\nCurrency exchange swap (2)\tDerivative\tN/A\t625.0\t0\t(7)\t12/23/2020\t01/29/2021\t(8.2)\t0\nForward-starting swap\tDerivative\tCash flow\t75.0\t0\t2.02%\t(8)\t06/30/2033\t(5.0)\t0\nForward-starting swap\tDerivative\tCash flow\t75.0\t0\t1.94%\t(8)\t11/30/2032\t(5.2)\t0\nForward-starting swap\tDerivative\tCash flow\t25.0\t0\t1.67%\t(8)\t11/30/2032\t(1.1)\t0\nForward-starting swap\tDerivative\tCash flow\t125.0\t0\t1.75%\t(8)\t06/30/2033\t(5.2)\t0\nForward-starting swap\tHybrid debt\tCash flow\t125.0\t0\t1.88%\t(8)\t11/30/2032\t(7.9)\t0\nForward-starting swap\tHybrid debt\tCash flow\t75.0\t0\t2.00%\t(8)\t06/30/2033\t(4.9)\t0\n\t\t\t1541.4\t673.4\t\t\t\t(81.5)\t(26.3)\n", "q10k_tbl_80": "\tDecember 31 2020\tDecember 31 2019\nCash and cash equivalents shown in the consolidated balance sheets\t824476\t54011\nRestricted escrow deposits (1)\t21220\t4529\nImpounds related to mortgages payable (1)\t4983\t12465\nTotal cash cash equivalents and restricted cash shown in the consolidated statements of cash flows\t850679\t71005\n", "q10k_tbl_81": "\t2020\t\t2019\t\t2018\t\n\tNumber of shares\tWeighted average price(1)\tNumber of shares\tWeighted average price(1)\tNumber of shares\tWeighted average price(1)\nOutstanding nonvested shares beginning of year\t259698\t58.39\t307821\t53.44\t475768\t52.32\nShares granted\t103473\t67.84\t87327\t69.83\t183952\t52.21\nShares vested\t(141486)\t56.94\t(126363)\t54.45\t(310706)\t51.05\nShares forfeited\t(2203)\t66.48\t(9087)\t55.71\t(41193)\t53.06\nOutstanding nonvested shares end of each period\t219482\t63.69\t259698\t58.39\t307821\t53.44\n", "q10k_tbl_82": "\tWeighting for year granted\t\t\nPerformance Awards Metrics\t2020\t2019\t2018\nTotal shareholder return (\"TSR\") ranking relative to MSCI US REIT Index\t70%\t45%\t45%\nTSR ranking relative to J.P. Morgan Net Lease Peer Group\tN/A\t26%\t26%\nDividend per share Growth Rate\t15%\t16%\t16%\nDebt-to-Adjusted EBITDAre Ratio\tN/A\t13%\t13%\nNet Debt-to-Adjusted EBITDAre Ratio\t15%\tN/A\tN/A\n", "q10k_tbl_83": "\t2020\t\t2019\t\t2018\t\n\tNumber of performance shares\tWeighted average price(1)\tNumber of performance shares\tWeighted average price(1)\tNumber of performance shares\tWeighted average price(1)\nOutstanding nonvested shares beginning of year\t304663\t62.25\t223392\t58.78\t245309\t62.49\nShares granted\t136729\t79.98\t128581\t65.34\t269868\t51.98\nShares vested\t(139012)\t63.66\t(47310)\t54.27\t(291785)\t54.88\nShares forfeited\t(10621)\t66.64\t0\t0\t0\t0\nOutstanding nonvested shares end of each period\t291759\t69.73\t304663\t62.25\t223392\t58.78\n", "q10k_tbl_84": "\t2020\t\t2019\t\t2018\t\n\tNumber of restricted stock units\tWeighted average price(1)\tNumber of restricted stock units\tWeighted average price(1)\tNumber of restricted stock units\tWeighted average price(1)\nOutstanding nonvested shares beginning of year\t15511\t59.82\t14968\t54.62\t24869\t55.97\nShares granted\t9966\t78.79\t5482\t69.58\t8383\t49.96\nShares vested\t(6807)\t58.63\t(4939)\t54.90\t(10118)\t55.01\nShares forfeited\t0\t0\t0\t0\t(8166)\t53.45\nOutstanding nonvested shares end of each period\t18670\t70.38\t15511\t59.82\t14968\t54.62\n", "q10k_tbl_85": "Assets as of December 31:\t2020\t2019\nSegment net real estate:\t\t\nAutomotive service\t328340\t288453\nBeverages\t347366\t279373\nChild care\t216718\t208326\nConvenience stores\t2101005\t2057157\nDollar stores\t1420210\t1427950\nDrug stores\t1555106\t1618854\nFinancial services\t374508\t389634\nGeneral merchandise\t730806\t475418\nGrocery stores - U.S.\t907634\t922349\nGrocery stores - U.K.\t1131760\t663210\nHealth and fitness\t1050791\t1019796\nHome improvement - U.S.\t608222\t495305\nRestaurants-casual dining\t515226\t576526\nRestaurants-quick service\t1062918\t1059155\nTheaters - U.S.\t767117\t878103\nTransportation services\t729640\t769614\nWholesale club\t407584\t396690\nOther non-reportable segments\t3230205\t2970859\nTotal segment net real estate\t17485156\t16496772\nIntangible assets:\t\t\nAutomotive service\t55018\t58854\nBeverages\t9401\t1509\nChild care\t19848\t21997\nConvenience stores\t121151\t131808\nDollar stores\t77176\t82701\nDrug stores\t167975\t183319\nFinancial services\t14611\t17130\nGeneral merchandise\t108646\t66135\nGrocery stores - U.S.\t181764\t180197\nGrocery stores - U.K.\t282211\t153407\nHealth and fitness\t67537\t74428\nHome improvement - U.S.\t97228\t72979\nRestaurants-casual dining\t20553\t23289\nRestaurants-quick service\t47517\t52353\nTheaters - U.S.\t28292\t36089\nTransportation services\t53902\t66055\nWholesale club\t36165\t23372\nOther non-reportable segments\t321660\t247761\nOther corporate assets\t1544474\t564641\nTotal assets\t20740285\t18554796\n", "q10k_tbl_86": "Revenue for the years ended December 31\t2020\t2019\t2018\nSegment rental revenue:\t\t\t\nAutomotive service\t35090\t32365\t28303\nBeverages\t32771\t31807\t31488\nChild care\t35643\t31749\t21865\nConvenience stores\t189658\t166755\t142194\nDollar stores\t126719\t102695\t94782\nDrug stores\t140993\t127853\t129565\nFinancial services\t30531\t30189\t29429\nGeneral merchandise\t49352\t35366\t29249\nGrocery stores - U.S.\t78106\t69691\t63594\nGrocery stores - U.K.\t51459\t17819\t0\nHealth and fitness\t104744\t105896\t94638\nHome improvement - U.S.\t46392\t42351\t37939\nRestaurants-casual dining\t46265\t45238\t46171\nRestaurants-quick service\t88163\t92018\t72465\nTheaters - U.S.\t78653\t87698\t70560\nTransportation services\t64131\t66500\t63565\nWholesale club\t38713\t38117\t37571\nOther non-reportable segments and contractually obligated reimbursements by our clients\t402150\t360711\t328168\nRental (including reimbursable)\t1639533\t1484818\t1321546\nOther\t12092\t6773\t6292\nTotal revenue\t1651625\t1491591\t1327838\n", "q10k_tbl_87": "\tGround Leases Paid by Realty Income (1)\tGround Leases Paid by Our Clients (2)\tTotal\n2021\t1.6\t13.7\t15.3\n2022\t1.6\t13.6\t15.2\n2023\t1.6\t13.7\t15.3\n2024\t1.6\t13.8\t15.4\n2025\t1.4\t13.5\t14.9\nThereafter\t18.8\t55.9\t74.7\nTotal\t26.6\t124.2\t150.8\nPresent value adjustment for remaining lease payments (3)\t\t\t(36.2)\nLease liability - operating leases net\t\t\t114.6\n", "q10k_tbl_88": "\tFirst Quarter\tSecond Quarter\tThird Quarter\tFourth Quarter\tYear\n2020\t\t\t\t\t\nTotal revenue(1)\t414341\t414636\t404572\t418076\t1651625\nDepreciation and amortization expense\t164585\t168328\t169084\t175041\t677038\nInterest expense\t75925\t77841\t76806\t78764\t309336\nOther expenses(2)\t53811\t62222\t151611\t72099\t339743\nNet income\t147143\t108070\t23143\t118150\t396506\nNet income available to common stockholders\t146827\t107824\t22904\t117931\t395486\nNet income per common share\t\t\t\t\t\nBasic\t0.44\t0.31\t0.07\t0.33\t1.15\nDiluted\t0.44\t0.31\t0.07\t0.33\t1.14\nDividends paid per common share\t0.6925\t0.6990\t0.7005\t0.7020\t2.7940\n2019\t\t\t\t\t\nTotal revenue\t354365\t365450\t374247\t397529\t1491591\nDepreciation and amortization expense\t137517\t150426\t149424\t156594\t593961\nInterest expense\t70020\t72488\t73410\t75073\t290991\nOther expenses(2)\t42861\t54143\t52139\t52269\t201412\nNet income\t111230\t95420\t101275\t129553\t437478\nNet income available to common stockholders\t110942\t95194\t101049\t129297\t436482\nNet income per common share\t\t\t\t\t\nBasic and diluted\t0.37\t0.31\t0.32\t0.39\t1.38\nDividends paid per common share\t0.6720\t0.6780\t0.6795\t0.6810\t2.7105\n", "q10k_tbl_89": "Exhibit No.\tDescription\n2.1\tAgreement and Plan of Merger dated as of September 6 2012 (File No. 001-13374) by and among Realty Income Corporation Tau Acquisition LLC and American Realty Capital Trust Inc. (filed as exhibit 2.1 to the Company's Form 8-K filed on September 6 2012 and incorporated herein by reference).\n2.2\tFirst Amendment to Agreement and Plan of Merger dated as of January 6 2013 by and among Realty Income Corporation Tau Acquisition LLC and American Realty Capital Trust Inc. (filed as exhibit 2.1 to the Company's Form 8-K filed on January 7 2013 (File No. 001-13374) and incorporated herein by reference).\n3.1\tArticles of Incorporation of the Company as amended by amendment No. 1 dated May 10 2005 and amendment No. 2 dated May 10 2005 (filed as exhibit 3.1 to the Company's Form 10-Q for the quarter ended June 30 2005 (File No. 033-69410) and incorporated herein by reference).\n3.2\tArticles of Amendment dated July 29 2011 (filed as exhibit 3.1 to the Company's Form 8-K filed on August 2 2011 (File No. 001-13374) and incorporated herein by reference).\n3.3\tArticles of Amendment dated June 21 2012 (filed as exhibit 3.1 to the Company's Form 8-K filed on June 21 2012 (File No. 001-13374) and incorporated herein by reference).\n3.4\tArticles of Amendment dated May 14 2019 (filed as exhibit 3.1 to the Company's Form 8-K filed on May 16 2019 (File No. 001-13374) and incorporated herein by reference).\n3.5\tAmended and Restated Bylaws of the Company dated February 19 2020 (filed as exhibit 3.1 to the Company's Form 8-K filed on February 20 2020 (File No. 001-13374) and incorporated herein by reference).\n3.6\tArticles Supplementary dated June 30 1998 establishing the terms of the Company's Class A Junior Participating Preferred Stock (filed as exhibit A to exhibit 1 of Form 8-A12B filed on June 26 1998 (File No. 001-13374) and incorporated herein by reference).\n3.7\tArticles Supplementary dated May 24 1999 establishing the terms of the Company's 93/8% Class B Cumulative Redeemable Preferred Stock (filed as exhibit 4.1 on Form 8-K filed on May 25 1999 (File No. 001-13374) and incorporated herein by reference).\n3.8\tArticles Supplementary dated July 28 1999 establishing the terms of the Company's 91/2% Class C Cumulative Redeemable Preferred Stock (filed as exhibit 4.1 on Form 8-K filed on July 30 1999 (File No. 001-13374) and incorporated herein by reference).\n3.9\tArticles Supplementary dated May 24 2004 and the Articles Supplementary dated October 18 2004 establishing the terms of the Company's 7.375% Monthly Income Class D Cumulative Redeemable Preferred Stock (filed as exhibit 3.8 on Form 8-A12B filed on May 25 2004 (File No. 001-13374) and incorporated herein by reference).\n3.10\tArticles Supplementary dated November 30 2006 establishing the terms of the Company's 6.75% Monthly Income Class E Cumulative Redeemable Preferred Stock (filed as exhibit 3.5 on Form 8-A12B filed on December 5 2006 (File No. 001-13374) and incorporated herein by reference).\n3.11\tArticles Supplementary to the Articles of Incorporation of the Company classifying and designating the 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock dated February 3 2012 (the \"First Class F Articles Supplementary\") (filed as exhibit 3.1 to the Company's Form 8-K filed on February 3 2012 (File No. 001-13374) and incorporated herein by reference).\n3.12\tCertificate of Correction to the First Class F Articles Supplementary dated April 11 2012 (filed as exhibit 3.2 to the Company's Form 8-K filed on April 17 2012 (File No. 001-13374) and incorporated herein by reference).\n3.13\tArticles Supplementary to the Articles of Incorporation of the Company classifying and designating additional shares of the 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock dated April 17 2012 (filed as exhibit 3.3 to the Company's Form 8-K filed on April 17 2012 (File No. 001-13374) and incorporated herein by reference).\nInstruments defining the rights of security holders including indentures\t\n4.1\tIndenture dated as of October 28 1998 between the Company and The Bank of New York (filed as exhibit 4.1 to the Company's Form 8-K filed on October 28 1998 (File No. 001-13374) and incorporated herein by reference).\n4.2\tForm of 5.875% Senior Notes due 2035 (filed as exhibit 4.2 to the Company's Form 8-K filed on March 11 2005 (File No. 033-69410) and incorporated herein by reference).\n4.3\tOfficer's Certificate pursuant to sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York as Trustee establishing a series of securities entitled 5.875% Senior Debentures due 2035 (filed as exhibit 4.3 to the Company's Form 8-K filed on March 11 2005 (File No. 033-69410) and incorporated herein by reference).\n4.4\tForm of Common Stock Certificate (filed as exhibit 4.16 to the Company's Form 10-Q for the quarter ended September 30 2011 filed on October 28 2011 (File No. 001-13374) and incorporated herein by reference).\n", "q10k_tbl_90": "4.5\tForm of 4.650% Note due 2023 (filed as exhibit 4.2 to Company's Form 8-K filed on July 16 2013 (File No. 001-13374) and incorporated herein by reference).\n4.6\tOfficer's Certificate pursuant to sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"4.650% Notes due 2023\" (filed as exhibit 4.3 to the Company's Form 8-K filed on July 16 2013 (File No. 001-13374) and incorporated herein by reference).\n4.7\tForm of 3.875% Note due 2024 (filed as exhibit 4.2 to Company's Form 8-K filed on June 25 2014 and incorporated herein by reference).\n4.8\tOfficer's Certificate pursuant to sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"3.875% Notes due 2024\" (filed as exhibit 4.3 to the Company's Form 8-K filed on June 25 2014 and incorporated herein by reference).\n4.9\tForm of 4.125% Note due 2026 (filed as exhibit 4.2 to Company's Form 8-K filed on September 23 2014 and incorporated herein by reference).\n4.10\tOfficer's Certificate pursuant to sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"4.125% Notes due 2026\" (filed as exhibit 4.3 to the Company's Form 8-K filed on September 23 2014 and incorporated herein by reference).\n4.11\tForm of 3.000% Note due 2027 (filed as exhibit 4.2 to Company's Form 8-K filed on October 12 2016 and incorporated herein by reference).\n4.12\tOfficer's Certificate pursuant to sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"3.000% Notes due 2027\" (filed as exhibit 4.3 to the Company's Form 8-K filed on October 12 2016 and incorporated herein by reference).\n4.13\tForm of 4.650% Note due 2047 (filed as exhibit 4.2 to Company's Form 8-K filed on March 15 2017 and incorporated herein by reference).\n4.14\tForm of 4.125% Note due 2026 (filed as exhibit 4.3 to Company's Form 8-K filed on March 15 2017 and incorporated herein by reference).\n4.15\tOfficers' Certificate pursuant to Sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"4.650% Notes due 2047\" and re-opening a series of securities entitled \"4.125% Notes due 2026\" (filed as exhibit 4.4 to Company's Form 8-K filed on March 15 2017 and incorporated herein by reference).\n4.16\tForm of 3.650% Note due 2028 (filed as exhibit 4.2 to Company's Form 8-K filed on December 6 2017 and incorporated herein by reference).\n4.17\tForm of 4.650% Note due 2047 (filed as exhibit 4.4 to Company's Form 8-K filed on December 6 2017 and incorporated herein by reference).\n4.18\tForm of 3.875% Note due 2025 (filed as exhibit 4.2 to Company's Form 8-K filed on April 4 2018 and incorporated herein by reference).\n4.19\tOfficers' Certificate pursuant to Sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"3.875% Notes due 2025\" and re-opening a series of securities entitled \"4.125% Notes due 2026\" (filed as exhibit 4.3 to Company's Form 8-K filed on April 4 2018 and incorporated herein by reference).\n4.20\tForm of 3.250% Note due 2029 (filed as exhibit 4.2 to the Company's Form 8-K filed on June 19 2019 and incorporated herein by reference).\n4.21\tOfficers' Certificate pursuant to Sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"3.250% Notes due 2029.\" (filed as exhibit 4.3 to the Company's Form 8-K filed on June 19 2019 and incorporated herein by reference).\n4.22*\tDescription of Securities.\n4.23\tForm of 3.250% Note due 2031 (filed as exhibit 4.2 to the Company's Form 8-K filed on May 8 2020 and incorporated herein by reference).\n4.24\tForm of 3.250% Note due 2031 (filed as exhibit 4.2 to the Company's Form 8-K filed on July 16 2020 and incorporated herein by reference).\n4.25\tOfficers' Certificate dated May 8 2020 pursuant to Sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"3.250% Notes due 2031.\" (filed as exhibit 4.3 to the Company's Form 8-K filed on May 8 2020 and incorporated herein by reference).\n4.26\tOfficers' Certificate dated July 16 2020 pursuant to Sections 201 301 and 303 of the Indenture dated October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee re-opening a series of securities entitled \"3.250% Notes due 2031.\" (filed as exhibit 4.3 to the Company's Form 8-K filed on July 16 2020 and incorporated herein by reference).\n4.27\tForm of 1.625% Note due 2030 (filed as exhibit 4.2 to the Company's Form 8-K filed on October 1 2020 and incorporated herein by reference).\n4.28\tOfficers' Certificate dated October 1 2020 pursuant to Sections 201 301 and 303 of the Indenture dated as of October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of securities entitled \"1.625% Notes due 2030\" (filed as an Exhibit 4.3 to the Company's Form 8-K filed on October 1 2020 and incorporated herein by reference).\n4.29\tForm of 0.750% Note due 2026 (filed as exhibit 4.2 to the Company's Form 8-K filed on December 14 2020 and incorporated herein by reference).\n4.30\tForm of 1.800% Note due 2033 (filed as exhibit 4.3 to the Company's Form 8-K filed on December 14 2020 and incorporated herein by reference).\n", "q10k_tbl_91": "4.31\tOfficers' Certificate dated December 14 2020 pursuant to Sections 201 301 and 303 of the Indenture dated as of October 28 1998 between the Company and The Bank of New York Mellon Trust Company N.A. as successor trustee establishing a series of debt securities entitled \"0.750% Notes due 2026\" and a series of debt securities entitled \"1.800% Notes due 2033\" (filed as an Exhibit 4.4 to the Company's Form 8-K filed on December 14 2020 and incorporated herein by reference).\nMaterial Contracts\t\n10.1+\tManagement Incentive Plan (filed as Exhibit 10.10 to the Company's Form 10-K for the year ended December 31 1997 filed on March 20 1998 (File No. 001-13374) and incorporated herein by reference).\n10.2+\tForm of Nonqualified Stock Option Agreement for Independent Directors (filed as Exhibit 10.11 to the Company's Form 10-K for the year ended December 31 1997 filed on March 20 1998 (File No. 001-13374) and incorporated herein by reference).\n10.3+\tForm of Restricted Stock Agreement between the Company and Executive Officers under the 2003 Stock Incentive Award Plan of Realty Income Corporation (filed as exhibit 10.11 to the Company's Form 8-K filed on January 6 2005 and dated January 1 2005 (File No. 001-13374) and incorporated herein by reference).\n10.4+\t2003 Stock Incentive Award Plan of Realty Income Corporation as amended and restated February 21 2006 (filed as exhibit 10.10 to the Company's Form 10-K for the year ended December 31 2005 filed on February 23 2006 (File No. 033-69410) and incorporated herein by reference).\n10.5+\tAmendment dated May 15 2007 to the Amended and Restated 2003 Stock Incentive Award Plan of Realty Income Corporation (filed as exhibit 10.1 to the Company's Form 10-Q for the quarter ended June 30 2007 and incorporated herein by reference).\n10.6+\tForm of Restricted Stock Agreement under the 2003 Stock Incentive Award Plan of Realty Income Corporation (filed as exhibit 10.2 to the Company's Form 10-Q for the quarter ended June 30 2007 filed on August 2 2007 (File No. 001-13374) and incorporated herein by reference).\n10.7+\tAmended and Restated Form of Employment Agreement between the Company and its Executive Officers (filed as exhibit 10.1 to the Company's Form 8-K filed on January 7 2010 and dated January 5 2010 (File No. 001-13374) and incorporated herein by reference).\n10.8+\tRealty Income Corporation 2012 Incentive Award Plan (filed as Appendix B to the Company's Proxy Statement on Schedule 14A filed on March 30 2012 and incorporated herein by reference).\n10.9+\tForm of Restricted Stock Agreement for Employees under the Realty Income Corporation 2012 Incentive Award Plan (filed as exhibit 10.1 to the Company's Form 8-K filed on January 8 2013 (File No. 001-13374) and incorporated herein by reference).\n10.10+\tForm of Restricted Stock Agreement for Non-Employee Directors under the Realty Income Corporation 2012 Incentive Award Plan (filed as exhibit 10.2 to the Company's Form 8-K filed on January 8 2013 (File No. 001-13374) and incorporated herein by reference).\n10.11+\tForm of Amendment to Employment Agreement (filed as exhibit 10.1 to the Company's Form 8-K filed on June 19 2013 (File No. 001-13374) and incorporated herein by reference).\n10.12+\tForm of Addendum to Restricted Stock Agreement (filed as exhibit 10.2 to the Company's Form 8-K filed on June 19 2013 (File No. 001-13374) and incorporated herein by reference).\n10.13+\tAmended and Restated Form Indemnification Agreement between the Company and each executive officer and each director of the Board of Directors of the Company (filed as exhibit 10.1 to the Company's Form 8-K filed on October 30 2014 and incorporated herein by reference).\n10.14+\tForm of Performance Share Award Agreement (filed as exhibit 10.1 to the Company's Form 10-Q filed on April 30 2015 and incorporated herein by reference).\n10.15+\tDividend Reinvestment and Stock Purchase Plan (filed pursuant to Rule 424(b)(5) under the Securities Act of 1933 as amended on February 23 2015 as a prospectus supplement to the Company's prospectus dated February 22 2013 (File No. 333-186788) and incorporated herein by reference).\n10.16+\tDividend Reinvestment and Stock Purchase Plan (filed pursuant to Rule 424(b)(5) under the Securities Act of 1933 as amended on July 30 2015 as a prospectus supplement to the Company's prospectus dated February 22 2013 (File No. 333-186788) and incorporated herein by reference).\n10.17+\tForm of Restricted Stock Agreement (filed as exhibit 10.30 to the Company's Form 10-K for the year ended December 31 2015 and incorporated herein by reference).\n10.18+\tForm of Restricted Stock Unit Award Agreement (filed as exhibit 10.31 to the Company's Form 10-K for the year ended December 31 2015 and incorporated herein by reference).\n10.19+\tForm of Second Amendment to Employment Agreement (filed as exhibit 10.32 to the Company's Form 10-K for the year ended December 31 2015 and incorporated herein by reference).\n10.20+\tFirst Amendment to Realty Income Corporation 2012 Incentive Award Plan. (filed as exhibit 10.33 to the Company's Form 10-K filed on February 23 2017 and incorporated herein by reference).\n10.21+\tSecond Amendment to Realty Income Corporation 2012 Incentive Award Plan (filed as exhibit 10.1 to the Company's Form 8-K filed on February 17 2017 and incorporated herein by reference).\n10.22+\tForm of Performance Share Award Agreement (filed as exhibit 10.3 to the Company's Form 10-Q for the quarter ended March 31 2017 and incorporated herein by reference).\n10.23+\tRealty Income Executive Severance Plan dated January 15 2019 (filed as exhibit 10.1 to the Company's Form 8-K filed on January 18 2019 and incorporated herein by reference).\n10.24+\tForm of Participation Agreement to Realty Income Executive Severance Plan dated January 15 2019 (filed as exhibit 10.2 to the Company's Form 8-K filed on January 18 2019 and incorporated herein by reference).\n10.25\tSecond Amended and Restated Credit Agreement dated August 7 2019 (filed as exhibit 10.1 to the Company's Form 8-K filed on August 12 2019 and incorporated herein by reference).\n10.26+\tSeverance Agreement and General Release dated January 29 2020 (filed as exhibit 10.1 to the Company's Form 8-K filed on January 30 2020 and incorporated herein by reference).\n10.27+\tParticipation Agreement to Realty Income Executive Severance Plan dated as of October 12 2020 by and between Realty Income Corporation and Christie B. Kelly. (filed as exhibit 10.1 to the Company's Form 8-K filed on October 13 2020 and incorporated herein by reference).\n", "q10k_tbl_92": "Subsidiaries of the Registrant\t\n21.1*\tSubsidiaries of the Company as of February 23 2021.\nConsents of Experts and Counsel\t\n23.1*\tConsent of Independent Registered Public Accounting Firm.\nCertifications\t\n31.1*\tRule 13a-14(a) Certifications as filed by the Chief Executive Officer pursuant to SEC release No. 33-8212 and 34-47551.\n31.2*\tRule 13a-14(a) Certifications as filed by the Chief Financial Officer pursuant to SEC release No. 33-8212 and 34-47551.\n32*\tSection 1350 Certifications as furnished by the Chief Executive Officer and the Chief Financial Officer pursuant to SEC release No. 33-8212 and 34-47551.\nInteractive Data Files\t\n101*\tThe following materials from Realty Income Corporation's Annual Report on Form 10-K for the year ended December 31 2020 formatted in Extensible Business Reporting Language: (i) Consolidated Balance Sheets (ii) Consolidated Statements of Income and Comprehensive Income (iii) Consolidated Statements of Stockholders' Equity (iv) Consolidated Statements of Cash Flows (v) Notes to Consolidated Financial Statements and (vi) Schedule III Real Estate and Accumulated Depreciation.\n104*\tThe cover page from the Company's Annual Report on Form 10-K for the year ended December 31 2020 formatted in Inline Extensible Business Reporting Language.\n* Filed herewith.\t\n+ Indicates a management contract or compensatory plan or arrangement.\t\n", "q10k_tbl_93": "By:\t/s/MICHAEL D. MCKEE\tDate: February 23 2021\n\tMichael D. McKee\t\n\tNon-Executive Chairman of the Board of Directors\t\nBy:\t/s/KATHLEEN R. ALLEN Ph.D.\tDate: February 23 2021\n\tKathleen R. Allen Ph.D.\t\n\tDirector\t\nBy:\t/s/A. LARRY CHAPMAN\tDate: February 23 2021\n\tA. Larry Chapman\t\n\tDirector\t\nBy:\t/s/REGINALD H. GILYARD\tDate: February 23 2021\n\tReginald H. Gilyard\t\n\tDirector\t\nBy:\t/s/PRIYA CHERIAN HUSKINS\tDate: February 23 2021\n\tPriya Cherian Huskins\t\n\tDirector\t\nBy:\t/s/GERARDO I. LOPEZ\tDate: February 23 2021\n\tGerardo I. Lopez\t\n\tDirector\t\nBy:\t/s/GREGORY T. MCLAUGHLIN\tDate: February 23 2021\n\tGregory T. McLaughlin\t\n\tDirector\t\nBy:\t/s/RONALD L. MERRIMAN\tDate: February 23 2021\n\tRonald L. Merriman\t\n\tDirector\t\nBy:\t/s/SUMIT ROY\tDate: February 23 2021\n\tSumit Roy\t\n\tDirector President Chief Executive Officer\t\n\t(Principal Executive Officer)\t\n", "q10k_tbl_94": "\t\t\tInitial Cost to Company\t\tCost Capitalized Subsequent to Acquisition\t\tGross Amount at Which Carried at Close of Period (Notes 3 4 and 6)\t\t\t\t\t\t\nDescription\tNumber of Properties (Note 1)\tEncumbrances (Note 2)\tLand\tBuildings Improvements and Acquisition Fees\tImprovements\tCarrying Costs\tLand\tBuildings Improvements and Acquisition Fees\tTotal\tAccumulated Depreciation (Note 5)\tDate of Construction\tDate Acquired\tLife on which depreciation in latest Income Statement is Computed (in Years)\nU.S.\t\t\t\t\t\t\t\t\t\t\t\t\t\nAerospace\t5\t12811485\t6890774\t110783380\t222669\t0\t6890774\t111006049\t117896823\t32439224\t1994-2013\t6/20/2011-6/27/2013\t25-35\nApparel stores\t37\t13925000\t73267619\t183914767\t3472987\t199362\t73267619\t187587116\t260854735\t48433166\t1970-2012\t10/30/1987-10/6/2020\t4-25\nAutomotive collision services\t83\t0\t59995209\t140125701\t1800680\t10000\t59995209\t141936381\t201931590\t33434601\t1928-2020\t8/30/2002-7/7/2020\t19-25\nAutomotive parts\t251\t0\t98784470\t252803413\t4702685\t826885\t98784470\t258332983\t357117453\t73960839\t1969-2020\t8/6/1987-10/28/2020\t15-25\nAutomotive service\t319\t0\t156569614\t244468843\t513914\t147524\t156569614\t245130281\t401699895\t73360221\t1920-2019\t10/2/1985-12/23/2020\t14-25\nAutomotive tire services\t202\t0\t126835381\t234004107\t727127\t97335\t126835381\t234828569\t361663950\t123637853\t1947-2017\t11/27/1985-12/14/2020\t10-25\nBeverages\t20\t0\t217138252\t174982150\t0\t147\t217138252\t174982297\t392120549\t44754449\t1992-2020\t6/25/2010-11/9/2020\t25-35\nBook Stores\t1\t0\t998250\t3696707\t129751\t79\t998250\t3826537\t4824787\t3590046\t1996\t3/11/1997\t25\nChild care\t278\t0\t98644904\t221368767\t5240741\t901323\t98644904\t227510831\t326155735\t109437582\t1958-2018\t12/22/1981-10/30/2020\t4-25\nConsumer electronics\t12\t0\t22731086\t28326134\t939944\t51616\t22731086\t29317694\t52048780\t12093963\t1992-2003\t6/9/1997-12/7/2020\t23-25\nConsumer goods\t4\t0\t7663458\t124173738\t894295\t0\t7663458\t125068033\t132731491\t26065011\t1987-2011\t1/22/2013-9/22/2015\t34-35\nConvenience stores\t1255\t0\t1067078213\t1402601795\t(598228)\t145384\t1067078213\t1402148951\t2469227164\t368222563\t1949-2020\t3/3/1995-10/30/2020\t5-25\nCrafts and novelties\t29\t0\t53819025\t124854660\t995404\t440482\t53819025\t126290546\t180109571\t18551249\t1974-2020\t11/26/1996-9/29/2020\t22-34\nDiversified industrial\t8\t9790000\t12501884\t140181089\t139970\t0\t12501884\t140321059\t152822943\t21274393\t1987-2015\t9/19/2012-10/30/2020\t25-35\nDollar stores\t1337\t11127000\t436860261\t1283734718\t1749982\t8879\t436860261\t1285493579\t1722353840\t302143582\t1935-2020\t2/3/1998-11/6/2020\t21-25\nDrug stores\t384\t123224723\t575380313\t1331712483\t3288007\t100379\t575380313\t1335100869\t1910481182\t355374686\t1965-2015\t9/30/1998-12/16/2019\t9-35\nEducation\t13\t0\t5689836\t19699816\t389722\t130135\t5689836\t20219673\t25909509\t16215093\t1980-2000\t12/19/1984-6/28/2006\t12-25\nElectric utilities\t1\t0\t1450000\t9209989\t0\t0\t1450000\t9209989\t10659989\t1941726\t1983\t8/30/2013\t35\nEntertainment\t10\t0\t28373479\t10617464\t515457\t0\t28373479\t11132921\t39506400\t6634393\t1989-1999\t3/26/1998-9/11/2014\t24-25\nEquipment services\t6\t0\t3889283\t38989570\t650489\t140\t3889283\t39640199\t43529482\t11916443\t2000-2014\t7/3/2003-12/2/2019\t25-35\nFinancial services\t238\t0\t115289112\t351027648\t(4403463)\t101099\t115289112\t346725284\t462014396\t87506735\t1807-2015\t3/10/1987-6/29/2018\t15-35\nFood processing\t6\t28533002\t13025055\t151759842\t210468\t0\t13025055\t151970310\t164995365\t25524794\t1988-2019\t4/1/2011-9/27/2019\t25-35\nGeneral merchandise\t122\t0\t199207356\t619215984\t(6200698)\t557868\t199207356\t613573154\t812780510\t81974326\t1954-2020\t8/6/1987-12/23/2020\t15-35\nGovernment services\t16\t0\t8093555\t121520749\t3517744\t0\t8093555\t125038493\t133132048\t29653734\t1983-2011\t9/17/2009-1/22/2013\t25-35\nGrocery stores\t132\t38621000\t276250552\t783434945\t1821243\t325183\t276250552\t785581371\t1061831923\t154197849\t1948-2020\t5/26/1988-12/22/2020\t20-35\nHealth and beauty\t2\t0\t2475474\t43935914\t0\t0\t2475474\t43935914\t46411388\t3256609\t2005-2017\t11/1/2006-4/13/2018\t25-35\nHealth and fitness\t103\t0\t251062948\t1054810217\t7735262\t172145\t251062948\t1062717624\t1313780572\t262990060\t1940-2019\t5/31/1995-3/19/2020\t23-25\nHealth care\t66\t0\t51510133\t298522788\t4046245\t1285766\t51510133\t303854799\t355364932\t66121271\t1930-2018\t9/9/1991-12/2/2019\t16-35\nHome furnishings\t64\t9700000\t31810693\t109453697\t2365455\t127944\t31810693\t111947096\t143757789\t34126430\t1968-2015\t1/24/1984-1/13/2020\t15-35\nHome improvement\t83\t6095360\t224674137\t465949401\t2472665\t75210\t224674137\t468497276\t693171413\t84948975\t1950-2015\t12/22/1986-11/23/2020\t23-35\nInsurance\t1\t0\t634343\t6331030\t0\t0\t634343\t6331030\t6965373\t2120895\t2012\t8/28/2012\t25\nJewelry\t4\t0\t0\t8268989\t0\t0\t0\t8268989\t8268989\t2632294\t2006-2008\t1/22/2013\t25\nMachinery\t1\t0\t1630917\t12938430\t0\t0\t1630917\t12938430\t14569347\t4377502\t2010\t7/31/2012\t25\nMotor vehicle dealerships\t28\t0\t115897045\t143335317\t0\t231\t115897045\t143335548\t259232593\t56030088\t1975-2017\t5/13/2004-3/29/2019\t25\nOffice supplies\t7\t0\t8281041\t13776478\t875115\t349599\t8281041\t15001192\t23282233\t12683737\t1995-2014\t1/29/1997-12/2/2019\t23-25\nOther manufacturing\t7\t23664607\t8893136\t78526394\t1676794\t239723\t8893136\t80442911\t89336047\t14216221\t1989-2016\t1/22/2013-12/21/2016\t34-35\nPackaging\t10\t1809877\t20323553\t163114123\t2480121\t0\t20323553\t165594244\t185917797\t33290751\t1965-2016\t6/3/2011-12/20/2017\t25-35\n", "q10k_tbl_95": "\t\t\tInitial Cost to Company\t\tCost Capitalized Subsequent to Acquisition\t\tGross Amount at Which Carried at Close of Period (Notes 3 4 and 6)\t\t\t\t\t\t\nDescription\tNumber of Properties (Note 1)\tEncumbrances (Note 2)\tLand\tBuildings Improvements and Acquisition Fees\tImprovements\tCarrying Costs\tLand\tBuildings Improvements and Acquisition Fees\tTotal\tAccumulated Depreciation (Note 5)\tDate of Construction\tDate Acquired\tLife on which depreciation in latest Income Statement is Computed (in Years)\nPaper\t2\t0\t2462414\t11934685\t44760\t0\t2462414\t11979445\t14441859\t3834776\t2002-2006\t5/2/2011-12/21/2012\t25-35\nPet supplies and services\t43\t2509000\t26418753\t114773425\t5541147\t243582\t26418753\t120558154\t146976907\t25506704\t1950-2019\t12/22/1981-11/24/2020\t11-35\nRestaurants - casual dining\t263\t0\t225489972\t416077090\t(1386447)\t1936522\t225489972\t416627165\t642117137\t126891240\t1965-2018\t5/16/1984-12/2/2019\t10-40\nRestaurants - quick service\t907\t0\t434309094\t806191905\t865353\t212582\t434309094\t807269840\t1241578934\t178660444\t1968-2019\t12/9/1976-10/12/2020\t11-26\nShoe stores\t3\t0\t6251472\t35793479\t214466\t214706\t6251472\t36222651\t42474123\t10836836\t1996-2008\t3/26/1998-1/22/2013\t23-35\nSporting goods\t20\t0\t34594645\t101810538\t997950\t178206\t34594645\t102986694\t137581339\t29388411\t1950-2016\t10/17/2001-12/2/2019\t19-25\nTelecommunications\t7\t0\t9269789\t68360132\t1484421\t21884\t9269789\t69866437\t79136226\t20270489\t1990-2016\t6/26/1998-12/10/2015\t22-35\nTheaters\t78\t0\t227724561\t742442923\t8987908\t270\t227724561\t751431101\t979155662\t212038075\t1930-2014\t7/27/2000-8/13/2019\t21-25\nTransportation services\t44\t0\t102948288\t800700134\t3051181\t401593\t102948288\t804152908\t907101196\t177461019\t1967-2016\t4/1/2003-9/6/2016\t25-35\nWholesale clubs\t33\t17820000\t191190334\t328001563\t(3889900)\t0\t191190334\t324111663\t515301997\t107718055\t1985-2015\t9/30/2011-9/25/2020\t25\nOther\t6\t0\t7254447\t24355185\t887023\t18796\t7254447\t25261004\t32515451\t6351227\t1982-1997\t5/29/1984-9/13/2013\t23-35\nU.K.\t\t\t\t\t\t\t\t\t\t\t\t\t\nGrocery stores\t31\t0\t568612041\t586831469\t0\t0\t568612041\t586831469\t1155443510\t23683408\t1975-2020\t5/23/2019-12/24/2020\t25-167\nHealth care\t2\t0\t8902803\t17341109\t0\t0\t8902803\t17341109\t26243912\t447303\t2000\t3/23/2020\t63-71\nHome improvement\t8\t0\t101275951\t86969771\t0\t0\t101275951\t86969771\t188245722\t956356\t1986-2006\t7/31/2020-12/2/2020\t25\nTheaters\t1\t0\t1561502\t0\t0\t0\t1561502\t0\t1561502\t0\t2011\t12/18/2019\tN/A\n\t6593\t299631054\t6331886427\t14647754645\t59170409\t9522579\t6331886427\t14716447633\t21048334060\t3563177697\t\t\t\n", "q10k_tbl_96": "Note 1.\tRealty Income Corporation owns 6503 single-client properties in the United States and Puerto Rico our corporate headquarters property in San Diego California and 39 single-client properties in the United Kingdom. Crest Net Lease Inc. owns 13 single-client properties in the United States.\t\t\t\n\tRealty Income Corporation also owns 34 multi-client properties located in the United States and owns three multi-client properties located in the United Kingdom.\t\t\t\nNote 2.\tIncludes mortgages payable secured by 68 properties but excludes unamortized net debt premiums of $1.7 million.\t\t\t\nNote 3.\tThe aggregate cost for federal income tax purposes for Realty Income Corporation is $22741595516 and for Crest Net Lease Inc. is $92643698.\t\t\t\nNote 4.\tThe following is a reconciliation of total real estate carrying value for the years ended December 31:\t2020\t2019\t2018\n\tBalance at Beginning of Period\t19637626852\t16566601986\t15027043415\n\tAdditions During Period:\t\t\t\n\tAcquisitions\t2163707260\t3644884106\t1802745841\n\tLess amounts allocated to acquired lease intangible assets and liabilities on our Consolidated Balance Sheets\t(382849836)\t(401318627)\t(89474897)\n\tImprovements Etc.\t6194424\t17447145\t23043158\n\tOther (Leasing Costs and Building Adjustments as a result of net debt premiums) (1)\t22489716\t2740797\t2839574\n\tTotal Additions\t1809541564\t3263753421\t1739153676\n\tDeductions During Period:\t\t\t\n\tCost of Real Estate sold\t253505789\t129736613\t165023825\n\tCost of Equipment sold\t24799\t11200\t15650\n\tReleasing costs\t258513\t673647\t232089\n\tOther (including Provisions for Impairment) (2)\t195003525\t87951488\t34323541\n\tTotal Deductions\t448792626\t218372948\t199595105\n\tForeign Currency Translation\t49958270\t25644393\t0\n\tBalance at Close of Period\t21048334060\t19637626852\t16566601986\n\t(1) Includes reclassification of $22.5 million right of use assets under finance leases in 2020.\t\t\t\n\t(2) Includes provision for impairment and for the year ended 2019 a reclassification of $36.9 million of right of use assets under finance leases in accordance with the adoption of ASC 842 Leases on January 1 2019.\t\t\t\n", "q10k_tbl_97": "Note 5.\tThe following is a reconciliation of accumulated depreciation for the years ended:\t\t\t\n\tBalance at Beginning of Period\t3140854604\t2723085290\t2350544126\n\tAdditions During Period - Provision for Depreciation\t531908615\t481498979\t432482396\n\tDeductions During Period:\t\t\t\n\tAccumulated depreciation of real estate and equipment sold or disposed of\t110914744\t64053838\t59941232\n\tForeign Currency Translation\t1329222\t324174\t0\n\tBalance at Close of Period\t3563177697\t3140854604\t2723085290\nNote 6.\tIn 2020 provisions for impairment were recorded on ninety-nine Realty Income properties.\t\t\t\n\tIn 2019 provisions for impairment were recorded on fifty-one Realty Income properties.\t\t\t\n\tIn 2018 provisions for impairment were recorded on forty-four Realty Income properties.\t\t\t\n\tSee report of independent registered public accounting firm.\t\t\t\n"}{"bs": "q10k_tbl_44", "is": "q10k_tbl_48", "cf": "q10k_tbl_47"}None
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File Number 1-13374
REALTY INCOME CORPORATION
(Exact name of registrant as specified in its charter)
Maryland
33-0580106
(State or Other Jurisdiction of Incorporation or Organization)
(IRS Employer Identification No.)
11995 El Camino Real, San Diego, California, 92130
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: (858) 284-5000
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class
Trading Symbol
Name of each exchange on which registered
Common Stock, $0.01 Par Value
O
New York Stock Exchange
1.625% Notes due 2030
O30
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐No☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer a smaller reporting company. or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
At June 30, 2020, the aggregate market value of the Registrant’s shares of common stock, $0.01 par value, held by non-affiliates of the Registrant was $20.5 billion based upon the last reported sale price of $59.50 per share on the New York Stock Exchange on June 30, 2020, the last business day of the Registrant’s most recently completed second fiscal quarter. The determination of affiliate status for purposes of this calculation is not necessarily a conclusive determination for other purposes.
At February 15, 2021, the number of shares of common stock outstanding was 373,390,661.
DOCUMENTS INCORPORATED BY REFERENCE
Part III, Items 10, 11, 12, 13, and 14 incorporate by reference certain specific portions of the definitive Proxy Statement for Realty Income Corporation’s Annual Meeting to be held on May 18, 2021, to be filed pursuant to Regulation 14A. Only those portions of the proxy statement which are specifically incorporated by reference herein shall constitute a part of this annual report.
Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing stockholders with dependable monthly dividends that increase over time. The company is structured as a real estate investment trust, or REIT, requiring it to annually distribute at least 90% of its taxable income (excluding net capital gains) in the form of dividends to its stockholders. The monthly dividends are supported by the cash flow generated from real estate owned under long-term net lease agreements with our commercial clients.
Realty Income was founded in 1969, and listed on the New York Stock Exchange (NYSE: O) in 1994. Over the past 52 years, Realty Income has been acquiring and managing freestanding commercial properties that generate rental revenue under long-term net lease agreements with our commercial clients. We refer to our tenants as clients, because we strive to build mutually beneficial relationships and we believe their success is our success. The company is a member of the S&P 500 Dividend Aristocrats® index for having increased its dividend every year for more than 25 consecutive years.
At December 31, 2020, we owned a diversified portfolio:
•Of 6,592 properties;
•With an occupancy rate of 97.9%, or 6,452 properties leased and 140 properties available for lease or sale;
•Doing business in 51 separate industries;
•Located in 49 U.S. states, Puerto Rico and the United Kingdom (U.K.);
•With approximately 110.8 million square feet of leasable space;
•With a weighted average remaining lease term (excluding rights to extend a lease at the option of our client) of approximately 9.0 years; and
•With an average leasable space per property of approximately 16,810 square feet; approximately 12,340 square feet per retail property and 245,270 square feet per industrial property.
Of the 6,592 properties in the portfolio at December 31, 2020, 6,555, or 99.4%, are single-client properties, of which 6,419 were leased, and the remaining are multi-client properties.
Our eight senior officers owned 0.05% of our outstanding common stock with a market value of $12.5 million at February 15, 2021. Our directors and seven senior officers, as a group, owned 0.15% of our outstanding common stock with a market value of$34.3 million at February 15, 2021.
Our common stock is listed on the NYSE under the ticker symbol “O” with a CUSIP number of 756109-104. Our 1.625% notes due December 2030 are listed on the NYSE under the ticker symbol "O30" with a CUSIP number of 756109-AY0. Our central index key number is 726728.
In January 2021, we had 210 employees, inclusive of two part-time employees, as compared to 196 employees, inclusive of two part-time employees, in January 2020.
We maintain a corporate website at www.realtyincome.com. On our website we make available, free of charge, copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, Form 3s, Form 4s, Form 5s, current reports on Form 8-K, and amendments to those reports, as soon as reasonably practicable after we electronically file these reports with the Securities and Exchange Commission, or SEC. None of the information on our website is deemed to be part of this report.
As of December 31, 2020, our clients in the theater industry represented 5.6% of our annualized contractual rent. Given the ongoing disruption to this industry due to the COVID-19 pandemic, we performed a property-level analysis on the collectability of rent for our theater properties. Our analysis involved the assignment of quartile rankings for each asset’s pre-pandemic EBITDAR relative to each operator’s overall footprint. Other criteria utilized included an analysis of the property’s pre-pandemic annual EBITDA generation before corporate overhead, and real estate fundamentals.
As a result of this analysis at September 30, 2020, we determined that for 31 of our 78 theater properties it was no longer probable that we would collect substantially all of contractual rents due. We fully reserved for six additional theater properties for which we do not possess unit level financial information. Consequently, we reserved for 100% of the outstanding receivables for 37 theater properties at September 30, 2020. Beginning October 2020, contractual rent from these 37 properties is accounted for on a cash basis. Additionally, during November 2020, one of these properties was sold. We fully reserved for one additional theater property at December 31, 2020. At December 31, 2020, the receivables outstanding for our 77 theater properties totaled $48.6 million, net of $23.7 million of reserves, and includes $7.8 million of straight-line rent receivables, net of $1.8 million of reserves. The monthly contractual rent associated with the 37 properties accounted for under the cash basis totaled approximately $2.8 million at December 31, 2020. The following table summarizes reserves recorded as a reduction of rental revenue for theater properties (dollars in millions):
Three Months Ended
Three Months Ended
Year Ended
September 30, 2020
December 31, 2020
December 31, 2020
Rental revenue reserves
$
15.6
$
8.1
$
23.7
Straight-line rent reserves
1.6
$
0.2
$
1.8
Total rental revenue reserves
$
17.2
$
8.3
$
25.5
Additionally, during the third quarter, we recorded provisions for impairment on 12 of the 37 theater properties for $79.0 million. During the fourth quarter, we recorded provisions for impairment on one additional theater property for $4.8 million. Impairment charges are not included in Nareit-defined funds from operations (FFO) available to commons stockholders or in our calculation of adjusted funds from operations (AFFO) available to commons stockholders.
See "Item 1A—Risk Factors" in Part I of this Annual Report on Form 10-K for more information regarding the actual and potential future impacts of the COVID-19 pandemic and the measures taken to limit its spread on our clients and our business, results of operations, financial condition and liquidity.
Increases in Monthly Dividends to Common Stockholders
We have continued our 52-year policy of paying monthly dividends. In addition, we increased the dividend five times during 2020 and once during 2021. As of February 2021, we have paid 93 consecutive quarterly dividend increases and increased the dividend 109 times since our listing on the NYSE in 1994.
Month
Month
Monthly Dividend
Increase
2020 Dividend increases
Declared
Paid
per share
per share
1st increase
Dec 2019
Jan 2020
$
0.2275
$
0.0005
2nd increase
Jan 2020
Feb 2020
$
0.2325
$
0.0050
3rd increase
Mar 2020
Apr 2020
$
0.2330
$
0.0005
4th increase
Jun 2020
Jul 2020
$
0.2335
$
0.0005
5th increase
Sep 2020
Oct 2020
$
0.2340
$
0.0005
2021 Dividend increases
1st increase
Dec 2020
Jan 2021
$
0.2345
$
0.0005
The dividends paid per share during 2020 totaled $2.7940, as compared to $2.7105 during 2019, an increase of $0.0835, or 3.1%.
The monthly dividend of $0.2345 per share represents a current annualized dividend of $2.81 per share, and an annualized dividend yield of approximately 4.5% based on the last reported sale price of our common stock on the
NYSE of $62.17 on December 31, 2020. Although we expect to continue our policy of paying monthly dividends, we cannot guarantee that we will maintain our current level of dividends, that we will continue our pattern of increasing dividends per share, or what our actual dividend yield will be in any future period.
Acquisitions During 2020
Below is a listing of our acquisitions in the U.S. and U.K. for the year ended December 31, 2020:
Number of Properties
Leasable Square Feet
Investment ($ in thousands)
Weighted Average Lease Term (Years)
Initial Average Cash Lease Yield (1)
Year ended December 31, 2020 (2)
Acquisitions - U.S. (in30 states)
202
5,476,009
$
1,302,220
14.9
5.8
%
Acquisitions - U.K. (3)
24
2,120,256
920,934
10.8
6.1
%
Total Acquisitions
226
7,596,265
$
2,223,154
13.2
5.9
%
Properties under Development - U.S.
18
1,601,095
84,127
15.3
5.6
%
Total (4)
244
9,197,360
$
2,307,281
13.2
5.9
%
(1)The initial average cash lease yield for a property is generally computed as estimated contractual first year cash net operating income, which, in the case of a net leased property, is equal to the aggregate cash base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that our client could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above. Contractual net operating income for the fourth quarter of 2020 includes approximately $700,000 received as a settlement credit for a property acquired in the U.S. as reimbursement of a free rent period.
In the case of a property under development or expansion, the contractual lease rate is generally fixed such that rent varies based on the actual total investment in order to provide a fixed rate of return. When the lease does not provide for a fixed rate of return on a property under development or expansion, the initial average cash lease yield is computed as follows: estimated cash net operating income (determined by the lease) for the first full year of each lease, divided by our projected total investment in the property, including land, construction and capitalized interest costs.
(2) None of our investments during 2020 caused any one client to be 10% or more of our total assets at December 31, 2020. All of our investments in acquired properties during 2020 are 100% leased at the acquisition date.
(3) Represents investments of £707.8 million Sterling during the year ended December 31, 2020 converted at the applicable exchange rate on the date of acquisition.
(4) Our clients occupying the new properties operate in 26 industries and are 86.6% retail and 13.4% industrial, based on rental revenue. Approximately 61% of the rental revenue generated from acquisitions during 2020 is from our investment grade rated clients, which we define as clients with a credit rating, and clients that are subsidiaries or affiliates of companies with a credit rating, as of the balance sheet date, of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch).
Portfolio Discussion
Leasing Results
At December 31, 2020, we had 140 properties available for lease out of 6,592 properties in our portfolio, which represents a 97.9% occupancy rate based on the number of properties in our portfolio.
The following tables summarize our leasing results for the periods indicated below:
Three months ended December 31, 2020
Properties available for lease at September 30, 2020
92
Lease expirations (1)
159
Re-leases to same client (2)
(72)
Re-leases to new client (2)(3)
(5)
Vacant dispositions
(34)
Properties available for lease at December 31, 2020
140
(1)Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current quarter.
(2)The annual new rent on these re-leases was $21.01 million, as compared to the previous annual rent of $20.95 million on the same properties, representing a rent recapture rate of 100.3% on the properties re-leased during the three months ended December 31, 2020.
(3)Re-leased all five properties to new clients after a period of vacancy.
Properties available for lease at December 31, 2019
94
Lease expirations (1)
446
Re-leases to same client (2)
(296)
Re-leases to new client (2)(3)
(18)
Vacant dispositions
(86)
Properties available for lease at December 31, 2020
140
(1)Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current year.
(2)The annual new rent on these re-leases was $66.24 million, as compared to the previous annual rent of $66.26 million on the same properties, representing a rent recapture rate of 100.0% on the properties re-leased during the year ended December 31, 2020.
(3)Re-leased five properties to new clients without a period of vacancy, and 13 properties to new clients after a period of vacancy.
As part of our re-leasing costs, we pay leasing commissions to unrelated, third party real estate brokers consistent with the commercial real estate industry standard, and sometimes provide rent concessions to our clients. We do not consider the collective impact of the leasing commissions or rent concessions to our clients to be material to our financial position or results of operations.
At December 31, 2020, our average annualized contractual rent was approximately $15.38 per square foot on the 6,452 leased properties in our portfolio. At December 31, 2020, we classified 21 properties, with a carrying amount of $19.0 million, as real estate and lease intangibles held for sale, net on our balance sheet. The expected sale of these properties does not represent a strategic shift that will have a major effect on our operations and financial results and is consistent with our existing disposition strategy to further enhance our real estate portfolio and maximize portfolio returns.
Investments in Existing Properties
During 2020, we capitalized costs of $7.0 million on existing properties in our portfolio, consisting of $1.8 million for re-leasing costs, $198,000 for recurring capital expenditures, and $5.0 million for non-recurring building improvements. In comparison, during 2019, we capitalized costs of $17.9 million on existing properties in our portfolio, consisting of $2.1 million for re-leasing costs, $801,000 for recurring capital expenditures, and $15.0 million for non-recurring building improvements.
The majority of our building improvements relate to roof repairs, HVAC improvements, and parking lot resurfacing and replacements. The amounts of our capital expenditures can vary significantly, depending on the rental market, credit worthiness of our clients, the lease term and the willingness of our clients to pay higher rents over the terms of the leases.
We define recurring capital expenditures as mandatory and recurring landlord capital expenditure obligations that have a limited useful life. We define non-recurring capital expenditures as property improvements in which we invest additional capital that extend the useful life of the properties.
Chief Legal Officer, General Counsel and Secretary Transition
Effective February 8, 2021, Michelle Bushore joined us as our new Executive Vice President (EVP), Chief Legal Officer, General Counsel and Secretary. Michael Pfeiffer, who served as our EVP, Chief Administrative Officer, General Counsel and Secretary intends to remain with the company through June 30, 2021, serving as EVP, Chief Administrative Officer, to assist with Ms. Bushore's transition.
Chief Financial Officer (CFO) and Treasurer Transition
Effective January 19, 2021, Christie B. Kelly assumed her role as our EVP, Chief Financial Officer (CFO) and Treasurer replacing Paul M. Meurer, our former CFO, who departed the company in March 2020. Concurrently with Ms. Kelly's appointment, she resigned from our Board of Directors, and our Board of Directors was reduced to nine members. As a result of Mr. Meurer's departure, we recognized an executive severance charge of $3.5 million during the first quarter of 2020, consisting of $1.6 million cash, $1.8 million related to share-based compensation expense, and $58,000 of professional fees.
Issuance of Common Stock in an Underwritten Public Offering
In January 2021, we raised $669.6 million from the issuance of 12,075,000 shares of common stock in an underwritten public offering, including 1,575,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. The company used the net proceeds from the offering, along with available cash and additional borrowings, to fund property acquisitions and for general corporate purposes and working capital.
Early Redemption of Notes
In January 2021, we completed the early redemption on all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022, plus accrued and unpaid interest. As a result of the early redemption, we will recognize aloss on extinguishment of debt of approximately $46 million, or approximately $0.12 per diluted common share, to net income available to common stockholders and Nareit-defined FFO in the three months ended March 31, 2021. Loss on extinguishment of debt is excluded in our calculation of AFFO.
In January 2020, we completed the early redemption on all $250.0 million in principal amount of our outstanding 5.750% notes due January 2021, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $9.8 million loss on extinguishment of debt during the three months ended March 31, 2020.
Equity Capital Raising
During 2020, we raised $1.85 billion from the sale of common stock at a weighted average price of $67.26 per share.
Note Issuances
In December 2020, we issued $325.0 million of 0.750% senior unsecured notes due March 2026 (the "2026 Notes") and $400.0 million of 1.800% senior unsecured notes due March 2033 (the "2033" Notes"). The public offering price for the 2026 Notes was 99.192% of the principal amount, for an effective yield to maturity of 0.908% and net proceeds of approximately $320.3 million. The public offering price for the 2033 Notes was 98.470% of the principal amount, for an effective yield to maturity of 1.941% and net proceeds of $391.3 million. The proceeds from this offering were used, along with available cash and additional borrowings, as necessary, to redeem all $950 million aggregate principal amount of the company's outstanding 3.25% notes due 2022 at the applicable redemption price, plus accrued interest, to fund potential investment opportunities and for other general corporate purposes.
In October 2020, we issued £400.0 million of 1.625% senior unsecured notes due December 2030. The public offering price for these notes was 99.191% of the principal amount, for an effective annual yield to maturity of 1.712% and net proceeds of $508.2 million, as converted at the applicable exchange rate on the closing of the offering.The proceedsfrom this offering were used to repay GBP-denominated borrowings outstanding under our $3.0 billion revolving credit facility, to settle an outstanding GBP/USD currency exchange swap arrangement, to fund potential investment opportunities and for other general corporate purposes.
In July 2020, we issued $350.0 million of 3.250% senior unsecured notes due January 2031 (the "2031" Notes), which constituted a further issuance of, and formed a single series with, the $600.0 million of 2031 Notes issued in May 2020. The public offering price was 108.241% of the principal amount, for an effective yield to maturity of 2.341% and net proceeds of $376.6 million.
In May 2020, we issued $600.0 million of 2031 Notes. The public offering price for the notes was 98.987% of the principal amount, for an effective yield to maturity of 3.364% and net proceeds of approximately $590.0 million.
The proceeds from each of the offerings of 2031 Notes were used to repay borrowings outstanding under our credit facility, to fund potential investment opportunities, and for other general corporate purposes.
Commercial Paper Program
In August 2020, we established a U.S. dollar-denominated unsecured commercial paper program. Under the terms of the program, we may, from time to time, issue unsecured commercial paper notes up to a maximum aggregate amount outstanding of $1.0 billion. Proceeds from commercial paper borrowings are used for general corporate purposes. As of December 31, 2020, we had no outstanding commercial paper borrowings. We use our $3.0 billion revolving credit facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program.
Term Loan Redemption
In June 2020, we repaid the $250.0 million term loan in full upon maturity.
Impact of COVID-19
The COVID-19 pandemic and the measures taken to limit its spread are negatively impacting global, national and regional economies across many industries, including the industries in which some of our clients operate, and have disrupted the businesses and operations of some of our clients, each of which has had and may continue to have an adverse impact on our business, results of operations, financial condition, and liquidity. These impacts may increase in severity as the duration or extent of the pandemic increases. See "Item 1A—Risk Factors" in Part I of this report for more information regarding some of the actual and potential future impacts of the COVID-19 pandemic and the measures taken to limit its spread on our clients and our business, results of operations, financial condition and liquidity.
As a result of this challenging environment, we continue to work diligently with our clients most affected by the pandemic to understand their business operations and financial liquidity and their ability to satisfy their contractual obligations to us. As we carefully navigate this difficult economic period with our clients, our focus is on finding resolutions that preserve the long-term relationships we have built with many of our clients.
The majority of lease concessions granted to our clients during 2020 as a result of the COVID-19 pandemic have been rent deferrals with the original lease term unchanged. In these cases, we have determined that the collection of deferred rent is probable (within the meaning applicable under U.S. generally accepted accounting principles, or GAAP), although we cannot assure you that this determination will not change in the future. In addition, as we believe to be the case with many retail landlords, we have received many short-term rent relief requests, most often in the form of rent deferral requests, or requests for further discussion from our clients. We believe that not all of our client requests will ultimately result in lease modification agreements, nor have we relinquished our contractual rights under our lease agreements where rent concessions have not yet been granted. Our rent collections for the periods below and rent relief requests to-date may not be indicative of collections, concessions or requests in any future period.
Percentages of Contractual Rent Collected as of January 31, 2021
Month Ended October 31, 2020
Month Ended November 30, 2020
Month Ended December 31, 2020
Quarter Ended December 31, 2020
Contractual rent collected(1) across total portfolio
93.5%
93.7%
93.6%
93.6%
Contractual rent collected(1) from our top 20 clients(2)
89.8%
90.2%
89.7%
89.9%
Contractual rent collected(1) from our investment grade clients(3)
100.0%
100.0%
100.0%
100.0%
(1) Collection rates are calculated as the aggregate contractual rent collected for the applicable period from the beginning of that applicable period through January 31, 2021, divided by the contractual rent charged for the applicable period. Rent collection percentages are calculated based on contractual rents (excluding percentage rents and contractually obligated reimbursements by our clients). Charged amounts have not been adjusted for any COVID-19 related rent relief granted and include contractual rents from any clients in bankruptcy. Due to differences in applicable foreign currency conversion rates and rent conventions, the percentages above may differ from percentages calculated utilizing total our portfolio annualized contractual rent.
(2) We define our top 20 clients as our 20 largest clients based on percentage of total portfolio annualized contractual rent as of December 31, 2020 for all periods.
(3) We define our investment grade clients as clients with a credit rating, and clients that are subsidiaries or affiliates of companies with a credit rating, as of the balance sheet date, of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch).
The following table provides information relating to percentage of total contractual rent due and collected for the indicated periods:
Percentage of Total Contractual Rent Due By Month(1)
Percentage of Total Contractual Rent Collected By Month(1)
December 2020
November 2020
October 2020
December 2020
November 2020
October 2020
U.S.
Aerospace
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
Apparel stores
1.3
1.3
1.3
1.3
1.3
1.3
Automotive collision services
1.1
1.1
1.1
1.1
1.1
1.1
Automotive parts
1.6
1.6
1.6
1.6
1.6
1.6
Automotive service
2.7
2.5
2.5
2.7
2.5
2.5
Automotive tire services
2.0
2.0
2.0
2.0
2.0
2.0
Beverages
2.0
2.0
2.0
2.0
2.0
2.0
Child care
2.1
2.1
2.1
2.1
2.1
2.1
Consumer electronics
0.2
0.3
0.3
0.2
0.3
0.3
Consumer goods
0.5
0.6
0.6
0.5
0.6
0.6
Convenience stores
12.0
12.1
12.1
12.0
12.0
12.0
Crafts and novelties
0.9
0.9
0.9
0.9
0.9
0.9
Diversified industrial
0.8
0.8
0.6
0.8
0.8
0.6
Dollar stores
7.7
7.7
7.7
7.6
7.7
7.7
Drug stores
8.2
8.3
8.4
8.2
8.3
8.4
Education
0.2
0.2
0.2
0.2
0.2
0.2
Electric utilities
0.1
0.1
0.1
0.1
0.1
0.1
Entertainment
0.3
0.3
0.3
0.3
0.3
0.3
Equipment services
0.3
0.3
0.3
0.3
0.3
0.3
Financial services
1.9
1.9
1.9
1.9
1.9
1.9
Food processing
0.7
0.7
0.7
0.7
0.7
0.7
General merchandise
3.2
3.0
3.0
3.2
3.0
3.0
Government services
0.6
0.6
0.7
0.6
0.6
0.7
Grocery stores
4.9
4.9
5.0
4.9
4.9
4.9
Health and beauty
0.2
0.2
0.2
0.2
0.2
0.2
Health and fitness
6.8
6.9
7.0
5.6
6.0
6.1
Health care
1.5
1.6
1.6
1.5
1.5
1.6
Home furnishings
0.7
0.7
0.7
0.7
0.7
0.7
Home improvement
3.1
3.0
3.0
3.1
3.0
3.0
Machinery
0.1
0.1
0.1
0.1
0.1
0.1
Motor vehicle dealerships
1.6
1.6
1.6
1.6
1.6
1.6
Office supplies
0.2
0.2
0.2
0.1
0.1
0.1
Other manufacturing
0.4
0.6
0.6
0.4
0.6
0.6
Packaging
0.9
0.9
0.9
0.9
0.9
0.9
Paper
0.1
0.1
0.1
0.1
0.1
0.1
Pet supplies and services
0.7
0.7
0.7
0.7
0.7
0.7
Restaurants - casual dining
2.9
2.9
2.9
2.7
2.8
2.8
Restaurants - quick service
5.3
5.5
5.6
5.3
5.5
5.6
Shoe stores
0.2
0.2
0.2
0.2
0.2
0.2
Sporting goods
0.7
0.7
0.7
0.7
0.7
0.7
Telecommunications
0.5
0.5
0.5
0.5
0.5
0.5
Theaters
5.6
5.7
5.7
0.8
0.7
0.5
Transportation services
4.0
4.1
4.1
4.0
4.1
4.1
Wholesale clubs
2.5
2.5
2.5
2.5
2.5
2.5
Other
0.1
*
0.2
0.1
*
0.2
Total U.S.
94.0%
94.6%
95.1%
87.6%
88.3%
88.6%
U.K.
Grocery stores
4.8
4.3
3.9
4.8
4.3
3.9
Health care
0.1
0.1
0.1
0.1
0.1
0.1
Home improvement
1.1
1.0
0.9
1.1
1.0
0.9
Theaters
*
*
*
—
—
—
Total U.K.
6.0%
5.4%
4.9%
6.0%
5.4%
4.9%
Totals
100.0%
100.0%
100.0%
93.6%
93.7%
93.5%
* Less than 0.1%
(1) Collection rates are calculated as the aggregate contractual rent collected for the applicable period from the beginning of that applicable period through January 31, 2021, divided by the contractual rent charged for the applicable period. Rent collection percentages are calculated based on contractual rents (excluding percentage rents and contractually obligated reimbursements by our clients). Charged amounts have not been adjusted for any COVID-19 related rent relief granted and include contractual rents from any clients in bankruptcy. Due to differences in applicable foreign currency conversion rates and rent conventions, the industry percentages above may differ from industry percentages calculated utilizing our total portfolio annualized contractual rent.
As the adverse impacts of the COVID-19 pandemic and the measures taken to limit its spread continue to evolve, the ability of our clients to continue to pay rent to us may further diminish, and therefore we cannot assure you that our historical rental collections are indicative of our rental collections in the future. As a result of the impacts of the COVID-19 pandemic and the measures taken to limit its spread, our revenues in the foreseeable future may decline relative to 2020, and that decline may continue or increase in subsequent periods as long as such impacts continue to exist.
Summarized Financial Results
The following summarizes our select financial results (dollars in millions, except per share data):
Year Ended December 31,
2020
2019
% Increase/ (decrease)
Total revenue
$
1,651.6
$
1,491.6
10.7
%
Net income available to common stockholders (1)
$
395.5
$
436.5
(9.4)
%
Net income per share (2)
$
1.14
$
1.38
(17.4)
%
FFO available to common stockholders
$
1,142.1
$
1,039.6
9.9
%
FFO per share (2)
$
3.31
$
3.29
0.6
%
AFFO available to common stockholders
$
1,172.6
$
1,050.0
11.7
%
AFFO per share (2)
$
3.39
$
3.32
2.1
%
(1) The calculation to determine net income available to common stockholders includes provisions for impairment, gain from the sales of real estate, and foreign currency gains and losses. These items can vary from year to year and can significantly impact net income available to common stockholders and period to period comparisons.
(2) All per share amounts are presented on a diluted per common share basis.
Our financial results for 2020 were impacted by the following transactions: (i) $147.2 million of provisions for impairment, (ii) $52.5 million in reserves recorded as a reduction of rental revenue, (iii) a $9.8 million loss on extinguishment of debt due to the early redemption of the 5.750% notes due 2021, and (iv) a $3.5 million executive severance charge for our former CFO. For 2019, the only comparable charges were $40.2 million in provisions for impairment and $2.9 million in reserves recorded as a reduction of rental revenue.
See our discussion of FFO and AFFO (which are not financial measures under GAAP), later in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in this annual report, which includes a reconciliation of net income available to common stockholders to FFO and AFFO.
DIVIDEND POLICY
Distributions are paid monthly to holders of shares of our common stock.
Distributions are paid monthly to the limited partners holding common units of Realty Income, L.P., each on a per unit basis that is generally equal to the amount paid per share to our common stockholders.
In order to maintain our status as a REIT for federal income tax purposes, we generally are required to distribute dividends to our stockholders aggregating annually at least 90% of our taxable income (excluding net capital gains), and we are subject to income tax to the extent we distribute less than 100% of our taxable income (including net capital gains). In 2020, our cash distributions to common stockholders totaled $964.2 million, or approximately 119.8% of our estimated taxable income of $804.9 million. Our estimated taxable income reflects non-cash deductions for depreciation and amortization. Our estimated taxable income is presented to show our compliance with REIT dividend requirements and is not a measure of our liquidity or operating performance. We intend to continue to make distributions to our stockholders that are sufficient to meet this dividend requirement and that will reduce or eliminate our exposure to income taxes. Furthermore, we believe our funds from operations are sufficient to support our current level of cash distributions to our stockholders. Our cash distributions to common stockholders in 2020 totaled $964.2 million, representing82.2% of our adjusted funds from operations available to common stockholders of $1.173 billion. In comparison, our 2019 cash distributions to common stockholders totaled $852.1 million, representing 81.2% of our adjusted funds from operations available to common stockholders of $1.05 billion.
Future distributions will be at the discretion of our Board of Directors and will depend on, among other things, our results of operations, FFO, AFFO, cash flow from operations, financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Code, our debt service requirements, and any other factors the Board of Directors may deem relevant. In addition, our credit facility contains financial covenants that could limit the amount of distributions payable by us in the event of a default, and which prohibit the payment of distributions on the common or preferred stock in the event that we fail to pay when due (subject to any applicable grace period) any principal or interest on borrowings under our credit facility.
Distributions of our current and accumulated earnings and profits for federal income tax purposes generally will be taxable to stockholders as ordinary income, except to the extent that we recognize capital gains and declare a capital gains dividend, or that such amounts constitute “qualified dividend income” subject to a reduced rate of tax. The maximum tax rate of non-corporate taxpayers for “qualified dividend income” is generally 20%. In general, dividends payable by REITs are not eligible for the reduced tax rate on qualified dividend income, except to the extent that certain holding requirements have been met with respect to the REIT’s stock and the REIT’s dividends are attributable to dividends received from certain taxable corporations (such as our taxable REIT subsidiaries) or to income that was subject to tax at the corporate or REIT level (for example, if we distribute taxable income that we retained and paid tax on in the prior taxable year). However, non-corporate stockholders, including individuals, generally may deduct up to 20% of dividends from a REIT, other than capital gain dividends and dividends treated as qualified dividend income, for taxable years beginning after December 31, 2017 and before January 1, 2026.
Distributions in excess of earnings and profits generally will first be treated as a non-taxable reduction in the stockholders’ basis in their stock, but not below zero. Distributions in excess of that basis generally will be taxable as a capital gain to stockholders who hold their shares as a capital asset. Approximately17.6% of the distributions to our common stockholders, made or deemed to have been made in 2020, were classified as a return of capital for federal income tax purposes.
BUSINESS PHILOSOPHY AND STRATEGY
We believe that owning an actively managed, diversified portfolio of commercial properties under long-term net lease agreements produces consistent and predictable income. A net lease typically requires the client to be responsible for monthly rent and certain property operating expenses including property taxes, insurance, and maintenance. In addition, clients of our properties typically pay rent increases based on: (1) fixed increases, (2) increases in the consumer price index (typically subject to ceilings), or (3) additional rent calculated as a percentage of the clients’ gross sales above a specified level. We believe that a portfolio of properties under long-term net lease agreements with our commercial clients generally produces a more predictable income stream than many other types of real estate portfolios, while continuing to offer the potential for growth in rental income.
Diversification is also a key component of our investment philosophy. We believe that diversification of the portfolio by client, industry, geography, and property type leads to more consistent and predictable income for our stockholders by reducing vulnerability that can come with any single concentration. Our investment activities have led to a diversified property portfolio that, as of December 31, 2020, consisted of 6,592 properties, doing business in 51 industries, and located in 49 U.S. states, Puerto Rico and the U.K. None of the 51 industries represented in our property portfolio accounted for more than 11.9% of our annualized contractual rent as of December 31, 2020.
Investment Strategy
When identifying new properties for investment, we generally focus on acquiring high-quality real estate that our clients consider important to the successful operation of their business. We generally seek to acquire real estate that has the following characteristics:
•Properties that are freestanding, commercially-zoned with a single client;
•Properties that are in significant markets or strategic locations critical to generating revenue for our clients (i.e. they need the property in which they operate in order to conduct their business);
•Properties that we deem to be profitable for our clients and/or can generally be characterized as important to the successful operations of the company’s business;
•Properties that are located within attractive demographic areas relative to the business of our clients;
•Properties with real estate valuations that approximate replacement costs;
•Properties with rental or lease payments that approximate market rents for similar properties; and
•Properties that can be purchased with the simultaneous execution or assumption of long-term net lease agreements, offering both current income and the potential for future rent increases.
We seek to invest in properties owned or leased by clients that are already or could become leaders in their respective businesses supported by mechanisms including (but not limited to) occupancy of prime real estate locations, pricing, merchandise assortment, service, quality, economies of scale, consumer branding, e-commerce, and advertising. In addition, we frequently acquire large portfolios of single-client properties net leased to different clients operating in a variety of industries. We have an internal team dedicated to sourcing such opportunities, often using our relationships with various clients, owners/developers, brokers and advisers to uncover and secure transactions. We also undertake thorough research and analysis to identify what we consider to be appropriate property locations, clients, and industries for investment. This research expertise is instrumental to uncovering net lease opportunities in markets where we believe we can add value.
In selecting potential investments, we generally look for clients with one or more of the following attributes:
•Reliable and sustainable cash flow;
•Revenue and cash flow from multiple sources;
•Are willing to sign a long-term lease (10 or more years); and
•Are large owners and/or users of real estate.
From a retail perspective, our investment strategy is to target clients that have a service, non-discretionary, and/or low-price-point component to their business. We believe these characteristics better position clients to operate in a variety of economic conditions and to compete more effectively with internet retailers. As a result of the execution of this strategy, approximately95% of our annualized retail contractual rent at December 31, 2020 is derived from our clients with a service, non-discretionary, and/or low price point component to their business. From a non-retail perspective, we target industrial properties generally leased to industry leaders that are primarily investment grade rated companies. We believe these characteristics enhance the stability of the rental revenue generated from these properties.
After applying this investment strategy, we pursue those transactions that meet our strategic objectives which include achieving an attractive aggregate investment spread over our cost of capital and favorable risk-adjusted returns. We will continue to evaluate all investments consistent with our objective of owning net lease assets.
Underwriting Strategy
In order to be considered for acquisition, properties must meet stringent underwriting requirements. We have established a four-part analysis to examine each potential investment based on:
•The aforementioned overall real estate characteristics, including demographics, replacement cost and comparative rental rates;
•Industry, client (including credit profile), and market conditions;
•Store profitability for retail locations if profitability data is available; and
•The importance of the real estate location to the operations of our clients’ business.
We believe the principal financial obligations for most of our clients typically include their bank and other debt, payment obligations to employees, suppliers, and real estate lease obligations. Because we typically own the land and building in which a client conducts its business or which are critical to the client’s ability to generate revenue, we believe the risk of default on a client’s lease obligation is less than the client’s unsecured general obligations. It has been our experience that clients must retain their profitable and critical locations in order to survive. Therefore, in the event of reorganization, they are less likely to reject a lease of a profitable or critical location because this would terminate their right to use the property.
Thus, as the property owner, we believe that we will fare better than unsecured creditors of the same client in the event of reorganization. If a property is rejected by our client during reorganization, we own the property and can either lease it to a new client or sell the property. In addition, we believe that the risk of default on real estate leases can be further mitigated by monitoring the performance of our clients’ individual locations and considering whether to proactively sell locations that meet our criteria for disposition.
We conduct comprehensive reviews of the business segments and industries in which our clients’ operate. Prior to entering into any transaction, our research department conducts a review of a client’s credit quality. The information
reviewed may include reports and filings, including any public credit ratings, financial statements, debt and equity analyst reports, and reviews of corporate credit spreads, stock prices, market capitalization, and other financial metrics. We conduct additional due diligence, including financial reviews of the client, and continue to monitor our clients’ credit quality on an ongoing basis by reviewing the available information previously discussed, and providing summaries of these findings to management.
At December 31, 2020, approximately 51% of our annualized contractual rent comes from properties leased to our investment grade clients, their subsidiaries or affiliated companies. At December 31, 2020, our top 20 clients (based on percentage of total portfolio annualized contractual rent) represented approximately 52% of our annualized rent and 12 of these clients have investment grade credit ratings or are subsidiaries or affiliates of investment grade companies.
Asset Management Strategy
In addition to pursuing new properties for investment, we seek to increase earnings and dividends through active asset management.
Generally, our asset management efforts seek to achieve:
•Rent increases at the expiration of existing leases, when market conditions permit;
•Optimum exposure to certain clients, industries, and markets through re-leasing vacant properties and selectively selling properties;
•Maximum asset-level returns on properties that are re-leased or sold;
•Additional value creation from the existing portfolio by enhancing individual properties, pursuing alternative uses, and deriving ancillary revenue; and
•Investment opportunities in new asset classes for the portfolio.
We continually monitor our portfolio for any changes that could affect the performance of our clients, our clients’ industries, and the real estate locations in which we have invested. We also regularly analyze our portfolio with a view towards optimizing its returns and enhancing its overall credit quality. Our active asset management strategy pursues asset sales when we believe the reinvestment of the sale proceeds will:
•Generate higher returns;
•Enhance the credit quality of our real estate portfolio;
•Extend our average remaining lease term; and/or
•Strategically decrease client, industry, or geographic concentration.
The active management of the portfolio is an essential component of our long-term strategy of maintaining high occupancy.
Capital Philosophy
Historically, we have met our long-term capital needs by issuing common stock, preferred stock and long-term unsecured notes and bonds. Over the long term, we believe that common stock should be the majority of our capital structure; however, we may issue preferred stock or debt securities. We may issue common stock when we believe that our share price is at a level that allows for the proceeds of any offering to be accretively invested into additional properties. In addition, we may issue common stock to permanently finance properties that were initially financed by our credit facility, commercial paper program, or debt securities. However, there can be no assurances that we will have access to the capital markets at all times and at terms that are acceptable to us.
Our primary cash obligations, for the current year and subsequent years, are included in the “Table of Obligations,” which is presented later in this section. We expect to fund our operating expenses and other short-term liquidity requirements, including property acquisitions and development costs, payment of principal and interest on our outstanding indebtedness, property improvements, re-leasing costs and cash distributions to common stockholders, primarily through cash provided by operating activities, borrowings on our credit facility and under our commercial paper program, and through public securities offerings.
We may choose to mitigate our financial exposure to exchange rate risk for properties acquired outside the U.S. through the issuance of debt securities denominated in the same local currency and through currency derivatives. We may leave a portion of our foreign cash flow unhedged to reinvest in additional properties in the same local currency.
For 2021, we intend to continue our active disposition efforts to further enhance our real estate portfolio. We plan to invest these proceeds into new property acquisitions if there are attractive opportunities available. However, we cannot guarantee that we will sell properties during 2021 or be able to invest the property sale proceeds in new properties.
Conservative Capital Structure
We believe that our stockholders are best served by a conservative capital structure. Therefore, we seek to maintain a conservative debt level on our balance sheet and solid interest and fixed charge coverage ratios. At December 31, 2020, our total outstanding borrowings of senior unsecured notes and bonds, term loan and mortgages payable were $8.85 billion, or approximately 28.2% of our total market capitalization of $31.34 billion.
We define our total market capitalization at December 31, 2020 as the sum of:
•Shares of our common stock outstanding of 361,303,445, plus total common units outstanding of 463,119, multiplied by the last reported sales price of our common stock on the NYSE of $62.17 per share on December 31, 2020, or $22.49 billion;
•Outstanding mortgages payable of $299.6 million, excluding net mortgage premiums of $1.7 million and deferred financing costs of $973,000;
•Outstanding borrowings of $250.0 million on our term loan, excluding deferred financing costs of $642,000;
•Outstanding senior unsecured notes and bonds of $8.30 billion, including Sterling-denominated notes totaling £715.0 million, and excluding unamortized net original issuance premiums of $14.6 million and deferred financing costs of $49.2 million; and
•No borrowings outstanding on our revolving credit facility.
Impact of Real Estate and Credit Markets
In the commercial real estate market, property prices generally continue to fluctuate. Likewise, during certain periods, including the current market, the global credit markets have experienced significant price volatility, dislocations, and liquidity disruptions, which may impact our access to and cost of capital. We continually monitor the commercial real estate and global credit markets carefully and, if required, will make decisions to adjust our business strategy accordingly.
Universal Shelf Registration
In November 2018, we filed a shelf registration statement with the SEC, which is effective for a term of three years and will expire in November 2021. In accordance with SEC rules, the amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit. The securities covered by this registration statement include (1) common stock, (2) preferred stock, (3) debt securities, (4) depositary shares representing fractional interests in shares of preferred stock, (5) warrants to purchase debt securities, common stock, preferred stock, or depositary shares, and (6) any combination of these securities. We may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if these securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.
Revolving Credit Facility and Commercial Paper Program
We have a $3.0 billion unsecured revolving credit facility with an initial term that expires in March 2023 and includes, at our option, two six-month extensions. The multicurrency revolving facility allows us to borrow in up to 14 currencies, including U.S. dollars. Our revolving credit facility has a $1.0 billion expansion option, which is subject to obtaining lender commitments. Under our credit facility, our investment grade credit ratings as of December 31, 2020 provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 0.775% with a facility commitment fee of 0.125%, for all-in pricing of 0.90% over LIBOR.
The borrowing rate under our revolving credit facility is subject to an interest rate floor and may change if our investment grade credit ratings change. We also have other interest rate options available to us under our credit facility. Our revolving credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation.
At December 31, 2020, we had a borrowing capacity of $3.0 billion available on our revolving credit facility and nooutstanding balance. The weighted average interest rate on borrowings outstanding under our revolving credit facility during 2020 was 1.5% per annum. We must comply with various financial and other covenants in our credit facility. At December 31, 2020, we were in compliance with these covenants. We continually evaluate our business
operations through the COVID-19 pandemic and, as of December 31, 2020, expect to remain in compliance with the financial covenants for our credit facility over the next 12 months. We expect to use our credit facility to acquire additional properties and for other general corporate purposes. Any additional borrowings will increase our exposure to interest rate risk.
In August 2020, we established a U.S. dollar-denominated unsecured commercial paper program. Under the terms of the program, we may, from time to time, issue unsecured commercial paper notes up to a maximum aggregate amount outstanding of $1.0 billion. Borrowings under this program generally mature in one year or less. At December 31, 2020, we had no outstanding commercial paper borrowings. The weighted average interest rate on borrowings under our commercial paper program was 0.3% from inception of the plan through December 31, 2020. We use our $3.0 billion revolving credit facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program.
We generally use our credit facility and commercial paper borrowings for the short-term financing of new property acquisitions. Thereafter, we generally seek to refinance those borrowings with the net proceeds of long-term or permanent financing, which may include the issuance of common stock, preferred stock or debt securities. We cannot assure you, however, that we will be able to obtain any such refinancing, or that market conditions prevailing at the time of the refinancing will enable us to issue equity or debt securities at acceptable terms. We regularly review our credit facility and commercial paper program and may seek to extend, renew or replace one or both, to the extent we deem appropriate.
Cash Reserves
We are organized to operate as an equity REIT that acquires and leases properties and distributes to stockholders, in the form of monthly cash distributions, a substantial portion of our net cash flow generated from leases on our properties. We intend to retain an appropriate amount of cash as working capital. At December 31, 2020, we had cash and cash equivalents totaling $824.5 million, inclusive of £32.3 million Sterling.
We believe that our cash and cash equivalents on hand, cash provided from operating activities, and borrowing capacity is sufficient to meet our liquidity needs for the next twelve months. We intend, however, to use permanent or long-term capital to fund property acquisitions and to repay future borrowings under our credit facility and commercial paper program.
Credit Agency Ratings
The borrowing interest rates under our revolving credit facility are based upon our ratings assigned by credit rating agencies. As of December 31, 2020, we were assigned the following investment grade corporate credit ratings on our senior unsecured notes and bonds: Moody’s Investors Service has assigned a rating of A3 with a “stable” outlook and Standard & Poor’s Ratings Group has assigned a rating of A- with a “stable” outlook. In addition, we were assigned the following ratings on our commercial paper at December 31, 2020: Moody's Investors Service has assigned a rating of P-2 and Standard & Poor's Ratings Group has assigned a rating of A-2.
Based on our ratings as of December 31, 2020, the facility interest rate was LIBOR, plus 0.775% with a facility commitment fee of 0.125%, for all-in pricing of 0.90% over LIBOR. Our credit facility provides that the interest rate can range between: (i) LIBOR, plus 1.45% if our credit rating is lower than BBB-/Baa3 or unrated and (ii) LIBOR, plus 0.75% if our credit rating is A/A2 or higher. In addition, our credit facility provides for a facility commitment fee based on our credit ratings, which range from: (i) 0.30% for a rating lower than BBB-/Baa3 or unrated, and (ii) 0.10% for a credit rating of A/A2 or higher.
We also issue senior debt securities from time to time and our credit ratings can impact the interest rates charged in those transactions. If our credit ratings or ratings outlook change, our cost to obtain debt financing could increase or decrease. The credit ratings assigned to us could change based upon, among other things, our results of operations and financial condition. These ratings are subject to ongoing evaluation by credit rating agencies and we cannot assure you that our ratings will not be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant. Moreover, a rating is not a recommendation to buy, sell or hold our debt securities, preferred stock or common stock.
Term Loans
In October 2018, in conjunction with our credit facility, we entered into a $250.0 million senior unsecured term loan, which matures in March 2024, and is governed by the credit agreement that governs our revolving credit facility. Borrowing under this term loan bears interest at the current one-month LIBOR, plus 0.85%. In conjunction with this
term loan, we also entered into an interest rate swap which effectively fixes our per annum interest on this term loan at 3.89%.
In June 2015, in conjunction with entering into our previous credit facility, we entered into a $250.0 million senior unsecured term loan which matured in June 2020. Borrowing under this term loan bore interest at the current one-month LIBOR, plus 0.90%. In conjunction with this term loan, we also entered into an interest rate swap which effectively fixed our per annum interest rate on this term loan at 2.62%. In June 2020, we repaid the term loan in full upon maturity.
Mortgage Debt
As of December 31, 2020, we had $299.6 million of mortgages payable, all of which were assumed in connection with our property acquisitions. Additionally, at December 31, 2020, we had net premiums totaling $1.7 million on these mortgages and deferred financing costs of $973,000. We expect to pay off the mortgages payable as soon as prepayment penalties have declined to a level that would make it economically feasible to do so. During 2020, we made $108.8 million of principal payments, including the repayment of nine mortgages in full for $103.4 million.
Notes Outstanding
As of December 31, 2020, we had $8.30 billion of senior unsecured note and bond obligations, excluding unamortized net original issuance premiums of $14.6 million and deferred financing costs of $49.2 million. All of our outstanding notes and bonds have fixed interest rates. With the exception of interest on our 1.625% senior unsecured notes due in December 2030, which is paid annually, interest on all of our other senior note and bond obligations is paid semiannually.
No Unconsolidated Investments
We have no unconsolidated investments, nor do we engage in trading activities involving energy or commodity contracts.
Environmental, Social and Governance (ESG)
In recent years, our environmental, social, and governance efforts have quickly evolved from commitments to action. We continue to focus on how best to institutionalize efforts for a lasting and positive impact. We strive to be a leader in the net lease industry in ESG initiatives.
We are committed to conducting our business according to the highest ethical standards. We are dedicated to providing an engaging, diverse, and safe work environment for our employees, operating our business in an environmentally conscious manner, and upholding our corporate responsibilities as a public company for the benefit of our stakeholders - our investors, clients, team and community.
As The Monthly Dividend Company®, our mission is to conduct business with integrity, transparency, respect and humility to create long-term value across economic cycles for all stakeholders. We are dedicated to providing dependable monthly dividends that increase over time.
We believe that our commitment to corporate responsibility, which encompasses ESG principles, is critical to our performance and long-term success and that we all have a shared responsibility to our community and the planet. The Nominating/Corporate Governance Committee of our Board of Directors has direct oversight of ESG matters.
Environmental - Sustainability
In 2020, we took the next step on our sustainability agenda by continuing to increase our ESG reporting and disclosure, expanding our "green lease" coverage, and committing to offsetting 100% of our electricity usage at our corporate headquarters through renewable energy combined with an energy storage system. As our sustainability strategy matures, we plan on executing more environmental impact initiatives in the coming years, by utilizing opportunities to collaborate with both internal and external stakeholders.
We hold the protection of our assets, communities, and the environment in high regard. Based on our business model, the properties in our portfolio are primarily net leased to our clients, and each client is generally responsible for maintaining the buildings, including utilities management and the implementation of environmentally sustainable practices at each location. In that light, we intend to expand our client engagement efforts to achieve shared sustainability objectives on an ongoing basis. As a member of the National Association of Real Estate Investment Trusts (Nareit) Real Estate Sustainability Council, we are focused on leveraging best practices and advancing our efforts in this area.
We put great effort into cultivating an inclusive company culture. We are one team, and together we are committed to providing an engaging work environment centered on our values of integrity, transparency, respect, and humility. We hire talented employees with diverse backgrounds and perspectives and work to provide an environment with regular, open communication where capable team members have fulfilling careers and are encouraged to engage with and make a positive impact on business partners and the communities in which we operate.
The COVID-19 pandemic presented challenges to our employees. In response, during 2020, we took the following actions to seek to assist our employees:
•Transitioned all employees to working remotely through secure systems supported by our IT department;
•Utilized Microsoft Teams to support regular communication, collaboration, and continued training;
•Increased dialogue with our team leaders, including our CEO, who scheduled regular check-in calls with departments and employees;
•Provided resources to employees who were directly impacted by the COVID-19 pandemic;
•Implemented a business continuity plan that includes emergency planning, disaster recovery, alternative communication outlets, and real-time testing simulations;
•Engaged with employees through a survey to gather their perspectives on how and when to return to an office work environment based on their individual situations; and
•Established virtual engagement activities bringing colleagues together through the Team Building Committee and Green Team.
Recruitment, Development and Retention
We believe our employees form the foundation of our corporate culture and are one of our most valuable assets. As of January 2021, we employed 210 professionals (including two part-time employees), with the majority of talent recruited and hired from the local community. In order to broaden our reach for talent, we offer a college internship program and attract candidates utilizing diverse resources such as affinity associations, targeted job advertisements, and employee referrals. Additionally, as part of our ongoing efforts to strengthen our internal leadership development capabilities, we operate an annual mentorship program and train on topics such as anti-discrimination and harassment, cybersecurity, Diversity, Equality and Inclusion (DE&I) awareness, safety, and important company policies that are required for every employee. We also offer competency-based training that includes professional development, mentorship opportunities, executive and officer-level coaching, and leadership development.
Assistance and support are provided to employees who are working towards obtaining job-related licenses and relevant certifications as well continuing education. Opportunities to enroll in professional and technical education is also extended to all employees who are looking for ways to continue learning and growing with the company.
Employee retention is vital to maintaining a robust and cohesive workforce. To that end, we provide compensation that we believe is competitive with our peers and competitors, including a generous benefits package. Benefits include medical, dental, and vision healthcare benefits for all employees and their families; participation in a 401(k) plan with a matching contribution from us; paid time-off; disability and life insurance; and, in years that the company's performance meets certain goals, the ability to earn equity in the company that vests over four years. Our employees have an average tenure of over five years and our leadership, including Vice President and above, tenure is over 11 years.
Diversity, Equality and Inclusion
We believe that much of our success is rooted in the diversity of our teams and our commitment to inclusion. This commitment starts at the top with our highly skilled and diverse Board, comprised of individuals with a variety of backgrounds and experience. We strive to emulate this diversity throughout the company as part of our ongoing commitment to diversity, equality and inclusion, our DE&I Policy. In 2020 we focused on building our employees awareness and understanding of DE&I with both required and voluntary learning opportunities (65% participation).
These learning opportunities aim to continue building knowledge and facilitate open and safe conversations regarding critical DE&I topics, such as confronting bias in the workplace, driving inclusive conversations with others, and promoting belonging in our remote environment.
We perform a pay equity analysis each year to ensure that regardless of gender, race, or national origin, employees who perform similar work under similar circumstances are paid similar wages.
The following data is as of February 8, 2021 and was gathered voluntarily from employees and directors, and reflects the information provided by the participating respondents. We define Manager Level as employees that either supervise at least one team member or hold a title of Associate Director or above. We define Senior Officer Level as employees with a title of Senior Vice President or above.
*6 of 17 senior officers identify as women
Age
% of our Workforce
Under 30 years old
21
%
Between 30 and 50 years old
57
%
Over 50 years old
22
%
Ethnicity
Asian
13
%
Black or African American
4
%
Hispanic or Latino
11
%
Caucasian
68
%
Two or more races
4
%
In addition, 22% of our Board of Directors identify as women and 44% identify as ethnically diverse.
Employee Engagement
We believe our focus on culture, employee engagement and inclusion has helped us mitigate the risk of losing key team members. To assess, analyze, and respond to employee sentiment and to ensure that we are doing all we can to foster engagement from a strategic perspective, we launched our first employee engagement survey in 2019. Eighteen months later, we conducted our second employee engagement survey, both with an overwhelming 99% of employees participating and increasing positive results. We continuously engage in our culture and the work environment experiences for opportunities to improve. We intend to continue to conduct employee engagement surveys every eighteen months.
We sponsor an active Team Building Committee comprised of volunteer-employees across numerous departments and seniority levels that organizes employee-driven, team-building events and activities to promote employee involvement, communication, and organizational continuity to foster strong interconnected relationships. We complement the Team Building Committee in support of our Environmental, Social, and Governance efforts with another volunteer-based, employee-driven Green Team that works on sustainability related matters at our office and in the community.
Employee Health, Safety and Wellbeing
We believe the health and wellbeing of our team members are cornerstones for our successful operations. Our “O”verall Wellbeing Program provides opportunities for our people to participate in various activities and educational programs to enhance their personal and professional lives. To support a healthy work-life balance, we offer flexible work schedules, fitness programs, on-site dry-cleaning pickup, car wash services, paid family leave, generous maternity leave, lactation rooms and an infant at work program for new parents. Employees also have access to a robust employee assistance program. Our Injury and Illness Prevention Program (IIPP) helps us meet our goal of maintaining a safe and healthy working environment for our employees.
Additionally, we have been training employees on best practice health habits in advance of a future return to our offices. Every employee will be required to attend an information session prior to regularly returning to the office to work. We have invested in MERV 13 filters, continuous HVAC air filtration, sanitizing stations, social distancing guidelines, training for healthy hand washing habits, escalated cleaning protocols, and preventative health screening questionnaires to create a safe and clean environment for our employees.
Our people are Realty Income.
Governance - Fiduciary Duties and Ethics
We believe that nothing is more important than a company’s reputation for integrity and serving as a responsible fiduciary for its stockholders. We are committed to managing the company for the benefit of our stockholders and are focused on maintaining good corporate governance. Our practices that illustrate this commitment include, but are not limited to:
•Our Board of Directors is currently comprised of nine directors, eight of whom are independent, non- employee directors;
•Our Board of Directors is elected on an annual basis with a majority vote standard;
•Our directors conduct annual self-evaluations and participate in orientation and continuing education programs;
•An enterprise risk management evaluation is conducted annually to identify and assess company risk;
•Each committee within our Board of Directors is comprised entirely of independent directors; and
•We adhere to all other corporate governance principles outlined in our Corporate Governance Guidelines. These guidelines, as well as our bylaws, committee charters and other governance documents may be found on our website.
We are committed to conducting our business according to the highest ethical standards and upholding our corporate responsibilities as a public company operating for the benefit of our stockholders. Our Board of Directors has adopted a Code of Business Ethics that applies to our directors, officers, and other employees. The Code of Business Ethics includes our commitment to dealing fairly with all of our customers, service providers, suppliers, and competitors. We conduct an annual training with our employees regarding ethical behavior and require all employees to acknowledge the terms of, and abide by, our Code of Business Ethics, which is also available on our website. Our employees have access to members of our Board of Directors to report anonymously, if desired, any suspicion of misconduct by any member of our senior management or executive team. Anonymous reporting is always available through the company’s whistleblower hotline and reported to our Audit Committee quarterly.
At December 31, 2020, we owned a diversified portfolio:
•Of 6,592 properties;
•With an occupancy rate of 97.9%, or 6,452 properties leased and 140 properties available for lease or sale;
•Doing business in 51 separate industries;
•Located in 49 U.S. states, Puerto Rico and the U.K.;
•With approximately 110.8 million square feet of leasable space;
•With a weighted average remaining lease term (excluding rights to extend a lease at the option of the client) of approximately 9.0 years; and
•With an average leasable space per property of approximately 16,810 square feet; approximately 12,340 square feet per retail property and 245,270 square feet per industrial property.
At December 31, 2020, 6,452 properties were leased under net lease agreements. A net lease typically requires the client to be responsible for monthly rent and certain property operating expenses including property taxes, insurance, and maintenance. In addition, our clients are typically subject to future rent increases based on increases in the consumer price index (typically subject to ceilings), additional rent calculated as a percentage of the client's gross sales above a specified level, or fixed increases.
We define total portfolio annualized contractual rental revenue as the monthly aggregate cash amount charged to clients, inclusive of monthly base rent receivables, as of the balance sheet date, multiplied by 12, excluding percentage rent. We believe total portfolio annualized contractual rent is a useful supplemental operating measure, as it excludes properties that were no longer owned at the balance sheet date and includes the annualized rent from properties acquired during the quarter. Total portfolio annualized contractual rent has not been reduced to reflect reserves recorded as reductions to GAAP rental revenue in the periods presented.
The following table sets forth certain information regarding our property portfolio classified according to the business of the respective clients, expressed as a percentage of our total portfolio annualized contractual rent:
Percentage of Total Portfolio Annualized Contractual Rent by Industry