Realty Income Corp (NYSE:O) shares fell despite the company’s positive quarterly results.
On Thursday, the real estate investment trust (REIT) reported its fourth-quarter results of its fiscal 2017, unveiling quarterly earnings of 22 cents per share, while AFFO per share was 76 cents per share. AFFO is a metric that measures the REIT’s funds from operations (FFO), adjusted for recurring capital expenditures.
Realty Income invested $562.5 million in 130 new properties and properties under development or expansion during the period. For its fiscal 2017, net income was $1.10 per share and its AFFO surged 6.3% year-over-year to $3.06 per share.
Throughout the year, the REIT invested $1.52 billion in 303 new properties and properties under development or expansion. Plus, Realty Income increased its dividends paid per common share by 5.6% year-over-year.
“Our earnings growth during the year was primarily driven by robust property acquisitions volume at investment spreads well above our historical average,” said John P. Case, Realty Income’s CEO. “We completed over $1.5 billion of property acquisitions in 2017 and also ended the year with portfolio occupancy of 98.4%, matching our highest year-end occupancy rate in the last 10 years. ”
For 2018, the REIT expects to acquire between $1 billion and $1.5 billion in real estate investments based on current market conditions. Plus, the company is introducing 2018 AFFO per share guidance of $3.14 to $3.20 per share, representing annual growth in the range of 3% to 5%.
O stock declined 2% after the bell Wednesday.