Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-13374 | ||
Entity Registrant Name | REALTY INCOME CORPORATION | ||
Entity Central Index Key | 0000726728 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 33-0580106 | ||
Entity Address, Address Line One | 11995 El Camino Real | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92130 | ||
City Area Code | 858 | ||
Local Phone Number | 284-5000 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | O | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 21.9 | ||
Entity Common Stock, Shares Outstanding | 333,627,261 | ||
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 12, 2020, 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. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Real estate, at cost: | ||
Land | $ 5,684,034 | $ 4,682,660 |
Buildings and improvements | 13,833,882 | 11,858,806 |
Total real estate, at cost | 19,517,916 | 16,541,466 |
Less accumulated depreciation and amortization | (3,117,919) | (2,714,534) |
Net real estate held for investment | 16,399,997 | 13,826,932 |
Real estate held for sale, net | 96,775 | 16,585 |
Net real estate | 16,496,772 | 13,843,517 |
Cash and cash equivalents | 54,011 | 10,387 |
Accounts receivable | 181,969 | 144,991 |
Lease intangible assets, net | 1,493,383 | 1,199,597 |
Other assets, net | 328,661 | 61,991 |
Total assets | 18,554,796 | 15,260,483 |
LIABILITIES AND EQUITY | ||
Distributions payable | 76,728 | 67,789 |
Accounts payable and accrued expenses | 177,039 | 133,765 |
Lease intangible liabilities, net | 333,103 | 310,866 |
Other liabilities | 262,221 | 127,109 |
Line of credit payable | 704,335 | 252,000 |
Term loans, net | 499,044 | 568,610 |
Mortgages payable, net | 410,119 | 302,569 |
Notes payable, net | 6,288,049 | 5,376,797 |
Total liabilities | 8,750,638 | 7,139,505 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock and paid in capital, par value $0.01 per share, 740,200,000 shares authorized, 333,619,106 shares issued and outstanding as of December 31, 2019 and 370,100,000 shares authorized, 303,742,090 shares issued and outstanding as of December 31, 2018 | 12,873,849 | 10,754,495 |
Distributions in excess of net income | (3,082,291) | (2,657,655) |
Accumulated other comprehensive loss | (17,102) | (8,098) |
Total stockholders’ equity | 9,774,456 | 8,088,742 |
Noncontrolling interests | 29,702 | 32,236 |
Total equity | 9,804,158 | 8,120,978 |
Total liabilities and equity | $ 18,554,796 | $ 15,260,483 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock and paid in capital, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock and paid in capital, authorized (in shares) | 740,200,000 | 370,100,000 |
Common stock and paid in capital, issued (in shares) | 333,619,106 | 303,742,090 |
Common stock and paid in capital, outstanding (in shares) | 333,619,106 | 303,742,090 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUE | |||
Rental (including reimbursable) | $ 1,484,818 | $ 1,321,546 | $ 1,212,306 |
Other | 6,773 | 6,292 | 3,462 |
Total revenue | 1,491,591 | 1,327,838 | 1,215,768 |
EXPENSES | |||
Depreciation and amortization | 593,961 | 539,780 | 498,788 |
Interest | 290,991 | 266,020 | 247,413 |
General and administrative | 66,483 | 84,148 | 58,446 |
Property (including reimbursable) | 88,585 | 66,326 | 69,480 |
Income taxes | 6,158 | 5,340 | 6,044 |
Provisions for impairment | 40,186 | 26,269 | 14,751 |
Total expenses | 1,086,364 | 987,883 | 894,922 |
Gain on sales of real estate | 29,996 | 24,643 | 40,898 |
Foreign currency and derivative gains, net | 2,255 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | (42,426) |
Net income | 437,478 | 364,598 | 319,318 |
Net income attributable to noncontrolling interests | (996) | (984) | (520) |
Net income attributable to the Company | 436,482 | 363,614 | 318,798 |
Preferred stock dividends | 0 | 0 | (3,911) |
Excess of redemption value over carrying value of preferred shares redeemed | 0 | 0 | (13,373) |
Net income available to common stockholders | $ 436,482 | $ 363,614 | $ 301,514 |
Amounts available to common stockholders per common share: | |||
Net income, basic and diluted (in dollars per share) | $ 1.38 | $ 1.26 | $ 1.10 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 315,837,012 | 289,427,430 | 273,465,680 |
Diluted (in shares) | 316,159,277 | 289,923,984 | 273,936,752 |
Other comprehensive income: | |||
Net income available to common stockholders | $ 436,482 | $ 363,614 | $ 318,798 |
Foreign currency translation adjustment | 186 | 0 | 0 |
Unrealized loss on derivatives, net | (9,190) | (8,098) | 0 |
Comprehensive income available to common stockholders | $ 427,478 | $ 355,516 | $ 318,798 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total stockholders' equity | Preferred stock | Common stock | Preferred stock and paid in capital | Common stock and paid in capital | Distributions in excess of net income | Accumulated other comprehensive loss | Noncontrolling interests |
Balance at Dec. 31, 2016 | $ 6,787,053 | $ 6,766,804 | $ 395,378 | $ 8,228,594 | $ (1,857,168) | $ 0 | $ 20,249 | ||
Balance (in shares) at Dec. 31, 2016 | 16,350,000,000 | 260,168,259 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 319,318 | 318,798 | 318,798 | 520 | |||||
Distributions paid and payable | (703,067) | (701,020) | (701,020) | (2,047) | |||||
Share issuances, net of costs | 1,388,080 | 1,388,080 | 1,388,080 | ||||||
Share issuances, net of costs (in shares) | 23,957,741 | ||||||||
Preferred shares redeemed | (408,751) | (408,751) | (395,378) | (13,373) | |||||
Preferred shares redeemed (in shares) | (16,350,000,000) | ||||||||
Reallocation of equity | 0 | (485) | (485) | 485 | |||||
Share-based compensation, net | 8,075 | 8,075 | 8,075 | ||||||
Share-based compensation, net (in shares) | 87,685 | ||||||||
Balance at Dec. 31, 2017 | 7,390,708 | 7,371,501 | 0 | 9,624,264 | (2,252,763) | 0 | 19,207 | ||
Balance (in shares) at Dec. 31, 2017 | 0 | 284,213,685 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 364,598 | 363,614 | 363,614 | 984 | |||||
Other comprehensive loss | (8,098) | (8,098) | (8,098) | ||||||
Distributions paid and payable | (770,502) | (768,506) | (768,506) | (1,996) | |||||
Share issuances, net of costs | 1,119,297 | 1,119,297 | 1,119,297 | ||||||
Share issuances, net of costs (in shares) | 19,304,878 | ||||||||
Additions to noncontrolling interest | 18,848 | 18,848 | |||||||
Redemptions | (2,752) | 2,829 | 2,829 | (5,581) | |||||
Redemption of common units (in shares) | 88,182 | ||||||||
Reallocation of equity | 0 | (774) | (774) | 774 | |||||
Share-based compensation, net | 8,879 | 8,879 | 8,879 | ||||||
Share-based compensation, net (in shares) | 135,345 | ||||||||
Balance at Dec. 31, 2018 | 8,120,978 | 8,088,742 | 0 | 10,754,495 | (2,657,655) | (8,098) | 32,236 | ||
Balance (in shares) at Dec. 31, 2018 | 0 | 303,742,090 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 437,478 | 436,482 | 436,482 | 996 | |||||
Other comprehensive loss | (9,004) | (9,004) | (9,004) | ||||||
Distributions paid and payable | (862,414) | (861,118) | (861,118) | (1,296) | |||||
Share issuances, net of costs | 2,117,983 | 2,117,983 | 2,117,983 | ||||||
Share issuances, net of costs (in shares) | 29,818,978 | ||||||||
Additions to noncontrolling interest | 11,370 | 11,370 | |||||||
Redemptions | (21,123) | (6,866) | (6,866) | (14,257) | |||||
Redemption of common units (in shares) | 0 | ||||||||
Reallocation of equity | 0 | (653) | (653) | 653 | |||||
Share-based compensation, net | 8,890 | 8,890 | 8,890 | ||||||
Share-based compensation, net (in shares) | 58,038 | ||||||||
Balance at Dec. 31, 2019 | $ 9,804,158 | $ 9,774,456 | $ 0 | $ 12,873,849 | $ (3,082,291) | $ (17,102) | $ 29,702 | ||
Balance (in shares) at Dec. 31, 2019 | 0 | 333,619,106 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 437,478 | $ 364,598 | $ 319,318 |
Adjustments to net income: | |||
Depreciation and amortization | 593,961 | 539,780 | 498,788 |
Loss on extinguishment of debt | 0 | 0 | 42,426 |
Amortization of share-based compensation | 13,662 | 27,267 | 13,946 |
Non-cash revenue adjustments | (9,338) | (7,835) | (3,927) |
Amortization of net premiums on mortgages payable | (1,415) | (1,520) | (466) |
Amortization of net (premiums) discounts on notes payable | (995) | (1,256) | 884 |
Amortization of deferred financing costs | 9,795 | 9,021 | 8,274 |
Loss (gain) on interest rate swaps | 2,752 | (2,733) | (3,250) |
Foreign currency and derivative gains, net | (2,255) | 0 | 0 |
Gain on sales of real estate | (29,996) | (24,643) | (40,898) |
Provisions for impairment on real estate | 40,186 | 26,269 | 14,751 |
Change in assets and liabilities | |||
Accounts receivable and other assets | (8,954) | (6,901) | (92) |
Accounts payable, accrued expenses and other liabilities | 24,056 | 18,695 | 26,096 |
Net cash provided by operating activities | 1,068,937 | 940,742 | 875,850 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in real estate | (3,572,581) | (1,769,335) | (1,413,270) |
Improvements to real estate, including leasing costs | (23,536) | (25,350) | (15,247) |
Proceeds from sales of real estate | 108,911 | 142,286 | 166,976 |
Insurance and other proceeds received | 0 | 7,648 | 14,411 |
Collection of loans receivable | 0 | 5,267 | 123 |
Non-refundable escrow deposits | (14,603) | (200) | (7,500) |
Net cash used in investing activities | (3,501,809) | (1,639,684) | (1,254,507) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash distributions to common stockholders | (852,134) | (761,582) | (689,294) |
Cash dividends to preferred stockholders | 0 | 0 | (6,168) |
Borrowings on line of credit | 2,816,632 | 1,774,000 | 1,465,000 |
Payments on line of credit | (2,365,368) | (1,632,000) | (2,475,000) |
Principal payment on term loan | (70,000) | (125,866) | 0 |
Proceeds from notes and bonds payable issued | 897,664 | 497,500 | 2,033,041 |
Principal payment on notes payable | 0 | (350,000) | (725,000) |
Proceeds from term loan | 0 | 250,000 | 0 |
Payments upon extinguishment of debt | 0 | 0 | (41,643) |
Principal payments on mortgages payable | (20,723) | (21,905) | (139,725) |
Redemption of preferred stock | 0 | 0 | (408,750) |
Proceeds from common stock offerings, net | 845,061 | 0 | 704,938 |
Proceeds from dividend reinvestment and stock purchase plan | 8,437 | 9,114 | 69,931 |
Proceeds from At-the-Market (ATM) program | 1,264,518 | 1,125,364 | 621,697 |
Redemption of common units | (21,123) | (2,752) | 0 |
Distributions to noncontrolling interests | (1,342) | (1,930) | (2,043) |
Net receipts on derivative settlements | 4,881 | 0 | 0 |
Debt issuance costs | (9,129) | (18,685) | (17,510) |
Other items, including shares withheld upon vesting | (4,772) | (33,387) | (14,356) |
Net cash provided by financing activities | 2,492,602 | 707,871 | 375,118 |
Effect of exchange rate changes on cash and cash equivalents | (9,796) | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 49,934 | 8,929 | (3,539) |
Cash, cash equivalents and restricted cash, beginning of period | 21,071 | 12,142 | 15,681 |
Cash, cash equivalents and restricted cash, end of period | $ 71,005 | $ 21,071 | $ 12,142 |
Organization and Operation
Organization and Operation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Operation | Organization and Operation Realty Income Corporation (“Realty Income,” the “Company,” “we,” “our” or “us”) is organized as a Maryland corporation. We invest in commercial real estate and have elected to be taxed as a real estate investment trust, or REIT. At December 31, 2019 , we owned 6,483 properties, located in 49 U.S states, Puerto Rico and the United Kingdom (U.K.), containing over 106.3 million leasable square feet. Information with respect to number of properties, square feet, average initial lease term and average cash lease yield is unaudited. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards | Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards Federal Income Taxes . We have elected to be taxed as a REIT, as defined above, under the Internal Revenue Code of 1986, as amended, or the Code. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our taxable net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income and comprehensive income represent amounts paid by Realty Income and its subsidiaries for city and state income and franchise taxes and for U.K. income taxes. Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for financial reporting purposes due to differences in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things. We regularly analyze our various federal and state filing positions and only recognize the income tax effect in our financial statements when certain criteria regarding uncertain income tax positions have been met. We believe that our income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provisions for uncertain income tax positions have been recorded in our financial statements. Net Income per Common Share. Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to common stockholders, plus income attributable to dilutive shares and convertible common units, for the period by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation. 2019 2018 2017 Weighted average shares used for the basic net income per share computation 315,837,012 289,427,430 273,465,680 Incremental shares from share-based compensation 322,265 179,532 154,050 Weighted average partnership common units convertible to common shares that were dilutive — 317,022 317,022 Weighted average shares used for diluted net income per share computation 316,159,277 289,923,984 273,936,752 Unvested shares from share-based compensation that were anti-dilutive 8,113 13,148 32,205 Weighted average partnership common units convertible to common shares that were anti-dilutive 442,073 297,576 88,182 Revenue Recognition and Accounts Receivable . The majority of our leases are accounted for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Any rental revenue contingent upon a tenant’s sales is recognized only after the tenant exceeds their sales breakpoint. Rental increases based upon changes in the consumer price indexes are recognized only after the changes in the indexes have occurred and are then applied according to the lease agreements. Contractually obligated rental revenue from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursements in the period when such costs are incurred. Taxes and operating expenses paid directly by the tenant are recorded on a net basis. On January 1, 2019, we adopted ASU 2016-02 (Topic 842, Leases ), which amended Topic 840, Leases. As our leases are accounted for as operating leases under both Topic 840 and 842, our lease revenue recognition policy was largely unaffected by this update. For further information, see Newly Adopted Accounting Standards section below. Other revenue, which includes property-related revenue not included in rental revenue and interest income recognized on financing receivables for certain leases with above-market terms. Principles of Consolidation . The accompanying consolidated financial statements include the accounts of Realty Income and other subsidiaries for which we make operating and financial decisions (i.e. control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination or asset acquisition was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments. Cash Equivalents and Restricted Cash . We consider all short-term, highly liquid investments that are readily convertible to cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Our cash equivalents are primarily investments in United States government money market funds. Restricted cash includes cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Code, impounds related to mortgages payable and cash that is not immediately available to Realty Income (i.e. escrow deposits for future acquisitions). Cash accounts maintained on behalf of Realty Income in demand deposits at commercial banks and money market funds may exceed federally insured levels or may be held in accounts without any federal insurance or any other insurance or guarantee. However, Realty Income has not experienced any losses in such accounts. Gain on Sales of Properties . When real estate is sold, the related net book value of the applicable assets is removed and a gain from the sale is recognized in our consolidated statements of income and comprehensive income. We record a gain from the sale of real estate provided that various criteria, relating to the terms of the sale and any subsequent involvement by us with the real estate, have been met. Allocation of the Purchase Price of Real Estate Acquisitions . A majority of our acquisitions qualify as asset acquisitions and the transaction costs associated with those acquisitions are capitalized. When acquiring a property for investment purposes, we typically allocate the cost of real estate acquired, inclusive of transaction costs, to: (1) land, (2) building and improvements, and (3) identified intangible assets and liabilities, based in each case on their relative estimated fair values. Intangible assets and liabilities consist of above-market or below-market lease value of in-place leases and the value of in-place leases, as applicable. In an acquisition of multiple properties, we must also allocate the purchase price among the properties. The allocation of the purchase price is based on our assessment of estimated fair value and is often based upon the expected future cash flows of the property and various characteristics of the markets where the property is located. In addition, any assumed mortgages are recorded at their estimated fair values. The estimated fair values of our mortgages payable have been calculated by discounting the future cash flows using applicable interest rates that have been adjusted for factors, such as industry type, tenant investment grade, maturity date, and comparable borrowings for similar assets. Our estimated fair value determinations are based on management’s judgment, utilizing various factors, including: market land and building values, market rental rates, discount rates and capitalization rates. Our methodology for measuring and allocating the fair value of real estate acquisitions includes both observable market data (categorized as level 2 on the three-level valuation hierarchy of Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement), and unobservable inputs that reflect our own internal assumptions (categorized as level 3 under ASC Topic 820). Given the significance of the unobservable inputs we believe the allocations of fair value of real estate acquisitions should be categorized as level 3 under ASC Topic 820. For certain of our purchase price allocations we have used the assistance of an independent third party real estate valuation firm. The allocation of tangible assets (which includes land and buildings/improvements) of an acquired property with an in-place lease is based upon relative fair value. Land is typically valued utilizing the sales comparison (or market) approach. Buildings and improvements are typically valued under the replacement cost approach. In allocating the fair value to identified intangibles for above-market or below-market leases, an amount is recorded based on the present value of the difference between (i) the contractual amount to be paid pursuant to the in-place lease and (ii) our estimate of fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease. The value of in-place leases is determined by our estimated costs related to acquiring a tenant and the carrying costs that would be incurred over the vacancy period to locate a tenant if the property were vacant, considering market conditions and costs to execute similar leases at the time of acquisition. The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income and comprehensive income. The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to depreciation and amortization expense over the remaining periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are recorded to revenue or expense as appropriate. Depreciation and Amortization . Land, buildings and improvements are recorded and stated at cost. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. Buildings and improvements that are under redevelopment, or are being developed, are carried at cost and no depreciation is recorded on these assets. Additionally, amounts essential to the development of the property, such as pre-construction, development, construction, interest and other costs incurred during the period of development are capitalized. We cease capitalization when the property is available for occupancy upon substantial completion of tenant improvements, but in any event no later than one year from the completion of major construction activity. Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 25 years or 35 years Building improvements 4 to 20 years Tenant improvements and lease commissions The shorter of the term of the related lease or useful life Acquired in-place leases Remaining terms of the respective leases Provision for Impairment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we utilize in this analysis include projected rental rates, estimated holding periods, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases. If a property was previously reclassified as held for sale but the applicable criteria for this classification are no longer met, the property is reclassified to real estate held for investment. A property that is reclassified to held for investment is measured and recorded at the lower of (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for investment, or (ii) the fair value at the date of the subsequent decision not to sell. Twenty-three properties were classified as held for sale at December 31, 2019 . We do not depreciate properties that are classified as held for sale. The following table summarizes provisions for impairment during the periods indicated below (dollars in millions): Year Ended December 31, 2019 2018 2017 Total provisions for impairment $ 40.2 $ 26.3 $ 14.8 Number of properties: Classified as held for sale 9 1 — Classified as held for investment 5 3 2 Sold 37 40 24 Equity Offering Costs. Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in-capital on our consolidated balance sheets. Noncontrolling Interests. Noncontrolling interests are reflected on our consolidated balance sheets as a component of equity. In accordance with the applicable accounting guidance, noncontrolling interests acquired prior to October 1, 2017 were recorded initially at fair value based on the price of the applicable units issued or contributions made, and subsequently adjusted each period for distributions, additional contributions and the allocation of net income attributable to the noncontrolling interests. Noncontrolling interests issued or assumed subsequent to October 1, 2017, were recorded based on the proportional share of equity in the entity. Derivative and Hedging Activities. We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or we elect not to apply hedge accounting. As of December 31, 2019 we had three interest rate swaps in place, including one on each of our $250.0 million unsecured term loans and the third on an assumed mortgage loan. Our objective in using derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. In October 2018, we designated these three interest rate swaps as hedges and adopted hedge accounting treatment in accordance with Topic 815, Derivatives and Hedging . From the adoption date through the end of 2019, the effective portion of gains or losses on our interest rate swaps were recorded in accumulated other comprehensive loss on our consolidated balance sheet as of December 31, 2019, instead of through interest expense on our consolidated statements of income and comprehensive income. In May 2019, we entered into four cross-currency swaps to exchange £130 million Sterling for $166 million maturing in May 2034, in order to hedge the foreign currency risk associated with our Sterling-denominated intercompany loan receivable from our consolidated foreign subsidiaries. These cross-currency swaps were designated as cash flow hedges on their trade date. Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in earnings over the life of the hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. The earnings recognition of excluded components is presented in foreign currency and derivative gains, net on our consolidated statements of income and comprehensive income, which is the same caption item as the hedged transactions. Use of Estimates . The consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles, or GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications . During the fourth quarter of 2019, we reclassified Goodwill, which was previously presented in its own caption on the consolidated balance sheets, into Other Assets for all comparative periods. Newly Adopted Accounting Standards. In February 2016, the FASB issued ASU 2016-02 (Topic 842, Leases ), which replaced Topic 840, Leases . Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of our leases remain classified as operating leases, and we continue to recognize lease income on a generally straight-line basis over the lease term. Although primarily a lessor, we are also a lessee under several ground lease arrangements. We adopted Topic 842, Leases , effective as of January 1, 2019 using the effective date method, and elected the practical expedients available for implementation under the standard for all classes of underlying assets. As a result, we recognize lease obligations for ground leases designated as operating and financing leases with corresponding right of use assets and liabilities (see note 3). Additionally, above-market rents on certain of our leases under which we are a lessor are accounted for as financing receivables amortizing over the lease term, and below-market rents on certain of our leases under which we are a lessor are accounted for as prepaid rent (see note 3). Also, as a result of the adoption of this standard, tenant reimbursable revenue and property expenses are now presented on a gross basis as both tenant reimbursement revenue included in rental revenue, and as a reimbursable expense included in property expenses, respectively, on our consolidated statements of income and comprehensive income. Property taxes and insurance paid directly by the lessee to a third party will continue to be presented on a net basis. These presentation changes had no impact on our results of operations. As a result, there was no restatement of prior issued financial statements and, similarly, no cumulative effect adjustment to opening equity; however, we have elected to aggregate prior period tenant reimbursement revenue within rental revenue to be consistent with the current period presentation within the statements of income and comprehensive income. In connection with our acquisition of properties in the U.K. during the second quarter of 2019, we adopted accounting guidance applicable under Topic 830, Foreign Currency Matters . The functional currency of the U.K. subsidiaries holding the acquired properties is the Great British Pound (Sterling). Assets and liabilities from our foreign-owned subsidiaries are translated into U.S. dollars using the exchange rate in effect at the consolidated balance sheet date. Equity accounts are translated at historical rates, except for retained earnings, whereas the impact is calculated via the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rates during the period. The cumulative translation adjustments from our U.K. subsidiaries are recorded in accumulated other comprehensive income (loss) in the consolidated statements of equity. We have intercompany debt denominated in pound sterling, which is the same currency as the functional currency of our U.K. subsidiaries. When this debt is remeasured against the functional currency of the Company, which is the U.S. dollar, a gain or loss can result. Such transaction gains or losses realized upon settlement of a foreign currency transaction, which may include intercompany transactions, are included in net income under the caption ‘Foreign currency and derivative gains, net'. |
Supplemental Detail for Certain
Supplemental Detail for Certain Components of Consolidated Balance Sheets | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Detail for Certain Components of Consolidated Balance Sheets | Supplemental Detail for Certain Components of Consolidated Balance Sheets (dollars in thousands): December 31, December 31, A. Lease intangible assets, net, consist of the following at: 2019 2018 In-place leases $ 1,612,153 $ 1,321,979 Accumulated amortization of in-place leases (627,676 ) (546,573 ) Above-market leases 710,275 583,109 Accumulated amortization of above-market leases (201,369 ) (158,918 ) $ 1,493,383 $ 1,199,597 December 31, December 31, B. Other assets, net, consist of the following at: 2019 2018 Right of use asset - operating leases, net $ 120,533 $ — Financing receivables 81,892 — Right of use asset - financing leases 36,901 — Non-refundable escrow deposits 14,803 200 Goodwill 14,430 14,630 Impounds related to mortgages payable 12,465 9,555 Prepaid expenses 11,839 11,595 Credit facility origination costs, net 11,453 14,248 Value-added tax receivable 9,682 — Corporate assets, net 5,251 5,681 Restricted escrow deposits 4,529 1,129 Derivative assets and receivables - at fair value 12 3,100 Other items 4,871 1,853 $ 328,661 $ 61,991 December 31, December 31, C. Distributions payable consist of the following declared distributions at: 2019 2018 Common stock distributions $ 76,622 $ 67,636 Noncontrolling interests distributions 106 153 $ 76,728 $ 67,789 December 31, December 31, D. Accounts payable and accrued expenses consist of the following at: 2019 2018 Notes payable - interest payable $ 75,114 $ 73,094 Derivative liabilities and payables - at fair value 26,359 7,001 Property taxes payable 18,626 14,511 Value-added tax payable 13,434 — Accrued costs on properties under development 5,870 8,137 Mortgages, term loans, and credit line - interest payable 1,729 1,596 Other items 35,907 29,426 $ 177,039 $ 133,765 December 31, December 31, E. Lease intangible liabilities, net, consist of the following at: 2019 2018 Below-market leases $ 447,522 $ 404,938 Accumulated amortization of below-market leases (114,419 ) (94,072 ) $ 333,103 $ 310,866 December 31, December 31, F. Other liabilities consist of the following at: 2019 2018 Rent received in advance and other deferred revenue $ 127,687 $ 115,380 Lease liability - operating leases, net 122,285 — Security deposits 6,303 6,093 Lease liability - financing leases 5,946 — Capital lease obligations — 5,636 $ 262,221 $ 127,109 |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate We acquire land, buildings and improvements necessary for the successful operations of commercial tenants. A. Acquisitions during 2019 and 2018 Below is a summary of our acquisitions for the year ended December 31, 2019 : Number of Properties Square Feet (in millions) Investment ($ in millions) Weighted Average Lease Term (Years) Initial Average Cash Lease Yield Year Ended December 31, 2019 (1) Acquisitions - U.S. (in 45 states) 753 11.6 $ 2,860.8 13.0 6.8 % Acquisitions - U.K. (2) 18 1.6 797.8 15.6 5.2 % Total Acquisitions 771 13.2 3,658.6 13.4 6.4 % Properties under Development - U.S. 18 0.5 56.6 15.1 7.3 % Total (3) 789 13.7 $ 3,715.2 13.5 6.4 % (1) None of our investments during 2019 caused any one tenant to be 10% or more of our total assets at December 31, 2019 . All of our 2019 investments in acquired properties are 100% leased at the acquisition date. (2) Represents investments of £625.8 million Sterling during the year ended December 31, 2019 converted at the applicable exchange rate on the date of acquisition. (3) The tenants occupying the new properties operate in 31 industries, and are 94.6% retail and 5.4% industrial, based on rental revenue. Approximately 36% of the rental revenue generated from acquisitions during 2019 is from investment grade rated tenants, their subsidiaries or affiliated companies. The $3.7 billion invested during 2019 was allocated as follows: $1.1 billion to land, of which $28.9 million was related to right of use assets under long-term ground leases, $2.1 billion to buildings and improvements, $448.3 million to intangible assets related to leases, $82.6 million to financing receivables related to certain leases with above-market terms, $46.8 million to intangible liabilities related to below-market leases, and $8.4 million to prepaid rent related to certain leases with below-market terms. There was no contingent consideration associated with these acquisitions. The properties acquired during 2019 generated total revenues of $92.0 million and net income of $36.9 million during the year ended December 31, 2019 . Below is a summary of our acquisitions for the year ended December 31, 2018 : Number of Properties Square Feet (in millions) Investment ($ in millions) Weighted Average Lease Term (Years) Initial Average Cash Lease Yield Year Ended December 31, 2018 (1) Acquisitions - U.S. (in 39 states) 750 4.1 $ 1,717.2 14.9 6.3 % Properties under Development - U.S. 14 1.1 80.3 12.3 6.9 % Total (2) 764 5.2 1,797.5 14.8 6.4 % (1) None of our investments during 2018 caused any one tenant to be 10% or more of our total assets at December 31, 2018 . All of our 2018 investments in acquired properties are 100% leased at the acquisition date. (2) The tenants occupying the new properties operated in 21 industries, and the property types consisted of 96.3% retail and 3.7% industrial, based on rental revenue. Approximately 59% of the rental revenue generated from acquisitions during 2018 was from investment grade rated tenants, their subsidiaries or affiliated companies. The $1.8 billion invested during 2018 was allocated as follows: $651.5 million to land, $1.0 billion to buildings and improvements, $141.0 million to intangible assets related to leases, and $39.2 million to intangible liabilities related to leases and other assumed liabilities. There was no contingent consideration associated with these acquisitions. The properties acquired during 2018 generated total revenues of $57.3 million and net income of $30.9 million during the year ended December 31, 2018 . 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 a tenant 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. 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. B. Investments in Existing Properties 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. In comparison, during 2018 , we capitalized costs of $17.9 million on existing properties in our portfolio, consisting of $3.9 million for re-leasing costs, $1.1 million for recurring capital expenditures and $12.9 million for non-recurring building improvements. C. Properties with Existing Leases Of the $3.7 billion we invested during 2019 , approximately $2.72 billion was used to acquire 575 properties with existing leases. In comparison, of the $1.8 billion we invested during 2018 , approximately $425.5 million was used to acquire 205 properties with existing leases. The value of the in-place and above-market leases is recorded to lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to lease intangible liabilities, net on our consolidated balance sheets. The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases, for 2019 , 2018 , and 2017 were $112.0 million , $106.6 million , and $104.8 million , respectively. The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for 2019 , 2018 , and 2017 were $21.7 million , $16.9 million , and $14.0 million , respectively. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense as appropriate. The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at December 31, 2019 (in thousands): Net decrease to rental revenue Increase to amortization expense 2020 $ (22,911 ) $ 122,982 2021 (21,756 ) 115,235 2022 (20,201 ) 103,268 2023 (18,685 ) 90,965 2024 (17,145 ) 82,394 Thereafter (75,105 ) 469,633 Totals $ (175,803 ) $ 984,477 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
Credit Facility | |
Debt | |
Debt | Credit Facility In August 2019, we amended and restated our unsecured credit facility, or our credit facility, in order to allow borrowings in multiple currencies under our revolving credit facility. The amended and restated credit agreement is otherwise substantively consistent with the prior credit agreement entered into in October 2018. Our credit facility consists of 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 and a $250.0 million unsecured term loan due March 2024. The revolving credit facility allows us to borrow in up to 14 currencies, including U.S. dollars, and has a $1.0 billion expansion option. Under our credit facility, our investment grade credit ratings as of December 31, 2019 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 drawn pricing of 0.90% over LIBOR. The borrowing rate 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 credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation. At December 31, 2019 , credit facility origination costs of $11.5 million are included in other assets, net, as compared to $14.2 million at December 31, 2018 , on our consolidated balance sheet. These costs are being amortized over the remaining term of our revolving credit facility. At December 31, 2019 , we had a borrowing capacity of $2.3 billion available on our revolving credit facility (subject to customary conditions to borrowing) and an outstanding balance of $704.3 million , including £169.2 million Sterling, as compared to an outstanding balance of $252.0 million at December 31, 2018 . The weighted average interest rate on outstanding borrowings under our revolving credit facility was 3.1% during 2019 and 2.9% during 2018 . At December 31, 2019 and 2018 , the weighted average interest rate on borrowings outstanding was 2.2% and 3.2% , respectively. Our credit facility is subject to various leverage and interest coverage ratio limitations, and at December 31, 2019 , we were in compliance with the covenants on our credit facility. |
Term Loans
Term Loans | 12 Months Ended |
Dec. 31, 2019 | |
Term Loans | |
Debt | |
Debt | Term Loans In October 2018, in conjunction with our revolving credit facility, we entered into a $250.0 million senior unsecured term loan, which matures in March 2024. 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% . The terms of this term loan were not impacted by the amendment and restatement of our credit agreement in August 2019. In June 2015, in conjunction with entering into our previous credit facility, we entered into a $250.0 million senior unsecured term loan maturing in June 2020. Borrowing under this term loan bears 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 fixes our per annum interest rate on this term loan at 2.62% . The terms of this term loan were not impacted by the amendment and restatement of our credit agreement in August 2019. In January 2013, in conjunction with our acquisition of American Realty Capital Trust, Inc., or ARCT, we entered into a $70.0 million senior unsecured term loan with an initial maturity date of January 2018. Borrowing under this term loan bore interest at the current one-month LIBOR , plus 1.10% . In conjunction with this term loan, we also entered into an interest rate swap, which, until its termination in January 2018, effectively fixed our per annum interest rate on this term loan at 2.05% . In 2018, we entered into two separate six –month extensions of this loan, during which periods the interest was borne at the current one–month LIBOR, plus 0.90% . In January 2019, we paid off the outstanding principal and interest on this term loan. Deferred financing costs of $1.2 million incurred in conjunction with the $250.0 million term loan maturing June 2020 and $1.1 million incurred in conjunction with the $250.0 million term loan maturing March 2024 are being amortized over the remaining terms of each respective term loan. The net balance of these deferred financing costs, which was $956,000 at December 31, 2019 and $1.4 million at December 31, 2018 , is included within term loans, net on our consolidated balance sheets. |
Mortgages Payable
Mortgages Payable | 12 Months Ended |
Dec. 31, 2019 | |
Mortgages Payable | |
Debt | |
Debt | Mortgages Payable During 2019 , we made $20.7 million in principal payments, including the repayment of one mortgage in full for $15.8 million . During 2018 , we made $21.9 million in principal payments, including the repayment of two mortgages in full for $17.0 million . During 2019, we assumed two mortgages totaling $130.8 million on 33 properties. No mortgages were assumed during 2018. Assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. Our mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage without the prior consent of the lender. At December 31, 2019 , we were in compliance with these covenants. The balance of our deferred financing costs, which are classified as part of mortgages payable, net, on our consolidated balance sheets, was $1.3 million at December 31, 2019 and $183,000 at December 31, 2018 . These costs are being amortized over the remaining term of each mortgage. The following is a summary of all our mortgages payable as of December 31, 2019 and 2018 , respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Average Remaining Years Until Maturity Remaining Principal Balance Unamortized Premium and Deferred Finance Costs Balance, net Mortgage Payable Balance 12/31/2019 92 4.9 % 4.6 % 3.1 $ 408,419 $ 1,700 $ 410,119 12/31/2018 60 5.1 % 4.6 % 3.2 $ 298,377 $ 4,192 $ 302,569 (1) At December 31, 2019 , there were 27 mortgages on 92 properties. At December 31, 2018 , there were 26 mortgages on 60 properties. The mortgages require monthly payments with principal payments due at maturity. At December 31, 2019 , the mortgages were at fixed interest rates, except for one variable rate mortgage on one property totaling $7.1 million , which has been swapped to a fixed interest rate. At December 31, 2018 , the mortgages were at fixed rates, except for two mortgages on two properties totaling $23.3 million . After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totaled $16.0 million at December 31, 2018 . (2) Stated interest rates ranged from 3.8% to 6.9% at each of December 31, 2019 and December 31, 2018 . (3) Effective interest rates ranged from 3.8% to 7.6% at December 31, 2019 , while effective interest rates ranged from 1.1% to 7.7% at December 31, 2018 . The following table summarizes the maturity of mortgages payable, excluding net premiums of $3.0 million and deferred financing costs of $1.3 million , as of December 31, 2019 (dollars in millions): Year of Maturity Principal 2020 $ 84.2 2021 68.8 2022 111.8 2023 20.6 2024 112.2 Thereafter 10.8 Totals $ 408.4 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes Payable | |
Debt | |
Debt | Notes Payable A. General Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): December 31, 2019 December 31, 2018 5.750% notes, issued in June 2010 and due in January 2021 $ 250 $ 250 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 950 950 4.650% notes, issued in July 2013 and due in August 2023 750 750 3.875% notes, issued in June 2014 and due in July 2024 350 350 3.875% notes, issued April 2018 and due in April 2025 500 500 4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 650 650 3.000% notes, issued in October 2016 and due in January 2027 600 600 3.650% notes, issued in December 2017 and due in January 2028 550 550 3.250% notes, issued in June 2019 and due in June 2029 500 — 2.730% notes, issued in May 2019 and due in May 2034 (1) 418 — 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 250 250 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 550 550 Total principal amount 6,318 5,400 Unamortized net original issuance premiums and deferred financing costs (30 ) (23 ) $ 6,288 $ 5,377 (1) Represents the principal balance (in U.S. dollars) of the Sterling-denominated private placement of £315.0 million Sterling based on the applicable exchange rate on December 31, 2019 . The following table summarizes the maturity of our notes and bonds payable as of December 31, 2019 , excluding unamortized net original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2021 $ 250 2022 950 2023 750 2024 350 Thereafter 4,018 Totals $ 6,318 As of December 31, 2019 , the weighted average interest rate on our notes and bonds payable was 3.9% and the weighted average remaining years until maturity was 8.3 years . Interest incurred on all of the notes and bonds was $233.5 million for 2019 , $213.8 million for 2018 and $197.1 million for 2017 . The interest rate on each of these notes and bonds is fixed. Our outstanding notes and bonds are unsecured; accordingly, we have not pledged any assets as collateral for these or any other obligations. Interest on all of the senior note and bond obligations is paid semiannually. All of these notes and bonds contain various covenants, including: (i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60% ; (ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40% ; (iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of our outstanding unsecured debt. At December 31, 2019 , we were in compliance with these covenants. B. Note Issuances During the three year period ended December 31, 2019 we issued the following notes and bonds (in millions): 2019 Issuances Date of Issuance Maturity date Principal amount issued Price of par value Effective yield to maturity 2.730% notes May 2019 May 2034 £315 100.00 % 2.73% 3.250% notes June 2019 June 2029 $500 99.36 % 3.33% 2018 Issuances 3.875% notes April 2018 April 2025 $500 99.50 % 3.96% 2017 Issuances 4.125% notes March 2017 October 2026 (1) $400 102.98 % 3.75% 4.650% notes March 2017 March 2047 $300 99.97 % 4.65% 3.250% notes December 2017 October 2022 (2) $500 101.77 % 2.84% 3.650% notes December 2017 January 2028 $550 99.78 % 3.68% 4.650% notes December 2017 March 2047 (3) $250 105.43 % 4.32% (1) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2026 issued in September 2014. (2) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2022 issued in October 2012. (3) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2047 issued in March 2017. The net proceeds from the May 2019 Sterling-denominated private placement of £315.0 million approximated $398.1 million , as converted at the applicable exchange rate on the closing of the offering, and were used to fund our initial investment in U.K. properties. The net proceeds of $492.2 million from the June 2019 note offering and the net proceeds of approximately $493.1 million from the April 2018 note offering were used to repay borrowings outstanding under our credit facility, to fund investment opportunities, and for other general corporate purposes. The net proceeds of $1.3 billion from the December 2017 note offerings were used to redeem all $550.0 million aggregate principal amount of our outstanding 2019 notes, including accrued and unpaid interest, and to repay borrowings outstanding under our revolving credit facility and, to the extent not used for those purposes, to fund the development and acquisitions of additional properties and for other general corporate purposes. The net proceeds of $705.2 million from the March 2017 note offerings were used to repay borrowings outstanding under our credit facility, to fund investment opportunities and for other general corporate purposes. C. Note Repayment In January 2018, we repaid our $350.0 million of outstanding 2.000% notes, plus accrued and unpaid interest upon maturity. In December 2017, we completed the early redemption on all $550.0 million of outstanding 6.75% notes due August 2019, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $42.4 million loss on extinguishment of debt, represents a $0.15 dilution of net income per common share for the year ended December 31, 2017. In September 2017, we repaid our $175.0 million of outstanding 5.375% notes, plus accrued and unpaid interest upon maturity. |
Issuances of Common Stock
Issuances of Common Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Issuances of Common Stock | Issuances of Common Stock A. Issuance of Common Stock in an Overnight Offering In May 2019, we issued 12,650,000 shares of common stock in an overnight underwritten public offering. After deducting underwriting discounts and other offering costs of $31.0 million , the net proceeds of $845.1 million were used to repay borrowings under our credit facility, to fund investment opportunities, and for other general corporate purposes. We did not issue any shares in an overnight offering in 2018. In March 2017, we issued 11,850,000 shares of common stock in an overnight offering. After underwriting discounts and other offering costs of $29.8 million , the net proceeds of $704.9 million were used to repay borrowings under our credit facility. B. Dividend Reinvestment and Stock Purchase Plan Our Dividend Reinvestment and Stock Purchase Plan, or our DRSPP, provides our common stockholders, as well as new investors, with a convenient and economical method of purchasing our common stock and reinvesting their distributions. Our DRSPP also allows our current stockholders to buy additional shares of common stock by reinvesting all or a portion of their distributions. Our DRSPP authorizes up to 26,000,000 common shares to be issued. At December 31, 2019 , we had 11,652,668 shares remaining for future issuance under our DRSPP program. The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions): Year Ended December 31, 2019 2018 2017 Shares of common stock issued under the DRSPP program 117,522 166,268 1,193,653 Gross proceeds $ 8.4 $ 9.1 $ 69.9 Our DRSPP includes a waiver approval process, allowing larger investors or institutions, per a formal approval process, to purchase shares at a small discount, if approved by us. We did not issue shares under the waiver approval process during 2019 or 2018. During 2017, we issued 927,695 shares and raised $54.7 million under the waiver approval process. These shares are included in the total activity for 2017 noted in the table above. C. At-the-Market (ATM) Program Under our ATM equity distribution plan, or our ATM program, pursuant to which up to 33,402,405 additional shares of common stock may be offered and sold (1) by us to, or through, a consortium of banks acting as our sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers' transactions on the NYSE at prevailing market prices or at negotiated prices. At December 31, 2019 , we had 33,402,405 shares remaining for future issuance under our ATM program. We anticipate maintaining the availability of our ATM program in the future, including through replenishing the authorized shares issuable thereunder. The following table outlines common stock issuances pursuant to our ATM program (dollars in millions): Year Ended December 31, 2019 2018 2017 Shares of common stock issued under the ATM program 17,051,456 19,138,610 10,914,088 Gross proceeds $ 1,274.5 $ 1,125.4 $ 621.7 |
Redemption of Preferred Stock
Redemption of Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Redemption of Preferred Stock | Redemption of Preferred Stock We issued an irrevocable notice of redemption with respect to our 6.625% Monthly Income Class F Preferred Stock, or the Class F preferred stock, in March 2017, and, as a result, we incurred a non–cash charge of $13.4 million for 2017, representing the Class F preferred stock original issuance costs that we paid in 2012. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests In January 2013, we completed our acquisition of ARCT. Equity issued as consideration for this transaction included common and preferred partnership units issued by Tau Operating Partnership, L.P., or Tau Operating Partnership, the consolidated subsidiary which owns properties acquired through the ARCT acquisition. In January 2019, we redeemed all 317,022 remaining common units of Tau Operating Partnership, and paid off the outstanding balance and interest on the $70.0 million senior unsecured term loan entered in January 2013 in conjunction with our acquisition of ARCT. Following the redemption, our taxable REIT subsidiary, Crest Net Lease, obtained a 0.11% interest in Tau Operating Partnership, and we continue to consolidate the entity. In 2019 and 2018, we completed the acquisitions of portfolios of properties, both by paying cash and by issuing additional common partnership units in Realty Income, L.P. as consideration for the acquisitions. At December 31, 2019, the remaining units from this issuance represent a 1.9% ownership in Realty Income, L.P. We hold the remaining 98.1% interests in this entity and consolidate the entity. Neither of the common partnership units have voting rights. Both common partnership units are entitled to monthly distributions equal to the amount paid to common stockholders of Realty Income, and are redeemable in cash or Realty Income common stock, at our option, and at a conversion ratio of one to one, subject to certain exceptions. These issuances with redemption provisions that permit the issuer to settle in either cash or common stock, at the option of the issuer, were evaluated to determine whether temporary or permanent equity classification on the balance sheet was appropriate. We determined that the units meet the requirements to qualify for presentation as permanent equity. In December 2019, we completed the acquisition of nine properties by acquiring a controlling interest in a joint venture. We are the managing member of this joint venture, and possess the ability to control the business and manage the affairs of this entity. At December 31, 2019, we and our subsidiaries held an 89.9% interest, and consolidated this entity in our consolidated financial statements. In 2016, we completed the acquisition of two properties by acquiring a controlling interest in two entities. In December 2018, we acquired all of the outstanding minority ownership interests associated with one of these entities. In July 2019, we acquired all of the outstanding minority interest associated with the remaining entity. The following table represents the change in the carrying value of all noncontrolling interests through December 31, 2019 (dollars in thousands): Tau Operating Partnership units (1) Realty Income, L.P. units (2) Other Noncontrolling Interests Total Carrying value at December 31, 2017 $ 13,322 $ 2,160 $ 3,725 $ 19,207 Reallocation of equity 572 (43 ) 245 774 Redemptions — (2,829 ) (2,752 ) (5,581 ) Shares issued in conjunction with acquisition — 18,848 — 18,848 Distributions (837 ) (842 ) (317 ) (1,996 ) Allocation of net income 299 618 67 984 Carrying value at December 31, 2018 $ 13,356 $ 17,912 $ 968 $ 32,236 Reallocation of equity — 653 — 653 Redemptions (13,356 ) — (901 ) (14,257 ) Additions to noncontrolling interest — 6,286 5,084 11,370 Distributions — (1,219 ) (77 ) (1,296 ) Allocation of net income — 964 32 996 Carrying value at December 31, 2019 $ — $ 24,596 $ 5,106 $ 29,702 (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013. No units remained outstanding as of December 31, 2019 , and 317,022 remained outstanding as of December 31, 2018 . (2) 242,007 Realty Income L.P. units were issued on March 30, 2018, 131,790 units were issued on April 30, 2018 and 89,322 units were issued on March 28, 2019. 463,119 and 373,797 units remained outstanding as of December 31, 2019 and 2018, respectively. At December 31, 2018 , Tau Operating Partnership, Realty Income, L.P. and an entity acquired during 2016 were considered variable interest entities, or VIEs, in which we were deemed the primary beneficiary based on our controlling financial interests. In January 2019, we redeemed all 317,022 remaining Tau Operating Partnership units held by nonaffiliates for $20.2 million and recorded the excess over carrying value of $6.9 million as a reduction to common stock and paid in capital. Following the redemption, we hold 100% of the ownership interests of Tau Operating Partnership, L.P., and while we continue to consolidate the entity, it is no longer considered a VIE. In July 2019, we purchased the remaining interest in the entity acquired during 2016 for $900,000 . Below is a summary of selected financial data of consolidated VIEs, including the joint venture acquired during 2019, for which we are the primary beneficiary, included in the consolidated balance sheets at December 31, 2019 and December 31, 2018 (in thousands): December 31, 2019 December 31, 2018 Net real estate $ 654,305 $ 2,903,093 Total assets 744,394 3,259,495 Total debt — 191,565 Total liabilities 89,975 320,800 |
Distributions Paid and Payable
Distributions Paid and Payable | 12 Months Ended |
Dec. 31, 2019 | |
Dividends [Abstract] | |
Distributions Paid and Payable | Distributions Paid and Payable A. Common Stock We pay monthly distributions to our common stockholders. The following is a summary of monthly distributions paid per common share for 2019 , 2018 and 2017 : Month 2019 2018 2017 January $ 0.2210 $ 0.2125 $ 0.2025 February 0.2255 0.2190 0.2105 March 0.2255 0.2190 0.2105 April 0.2260 0.2195 0.2110 May 0.2260 0.2195 0.2110 June 0.2260 0.2195 0.2110 July 0.2265 0.2200 0.2115 August 0.2265 0.2200 0.2115 September 0.2265 0.2200 0.2115 October 0.2270 0.2205 0.2120 November 0.2270 0.2205 0.2120 December 0.2270 0.2205 0.2120 Total $ 2.7105 $ 2.6305 $ 2.5270 The following presents the federal income tax characterization of distributions paid or deemed to be paid per common share for the years: 2019 2018 2017 Ordinary income $ 2.1206964 $ 2.0269173 $ 1.9402085 Nontaxable distributions 0.5898036 0.6035827 0.5478464 Total capital gain distribution — — 0.0389451 Totals $ 2.7105000 $ 2.6305000 $ 2.5270000 At December 31, 2019 , a distribution of $0.2275 per common share was payable and was paid in January 2020. At December 31, 2018 , a distribution of $0.2210 per common share was payable and was paid in January 2019. B. Class F Preferred Stock In April 2017, we redeemed all 16,350,000 shares of our Class F preferred stock. During the first three months of 2017, we paid three monthly dividends to holders of our Class F preferred stock totaling $0.414063 per share, or $3.9 million . In April 2017, we paid a final monthly dividend of $0.101215 per share, or $1.7 million , which was recorded as interest expense. For 2017, dividends per share of $0.5073368 were characterized as ordinary income and dividends per share of $0.0079412 were characterized as total capital gain distribution for federal income tax purposes. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases A. At December 31, 2019 , we owned 6,483 properties in 49 U.S. states, Puerto Rico and the U.K. Of the 6,483 properties, 6,452 , or 99.5% , are single-tenant properties, and the remaining are multi-tenant properties. At December 31, 2019 , 94 properties were available for lease or sale. Substantially all leases are net leases where the tenant pays or reimburses us for property taxes and assessments, maintains the interior and exterior of the building and leased premises, and carries insurance coverage for public liability, property damage, fire and extended coverage. Rent based on a percentage of a tenants’ gross sales or percentage rents was $8.0 million for 2019 , $5.9 million for 2018 and $6.1 million for 2017 . At December 31, 2019 , minimum future annual rents to be received on the operating leases for the next five years and thereafter are as follows (dollars in thousands): 2020 $ 1,541,732 2021 1,503,125 2022 1,435,784 2023 1,350,877 2024 1,233,083 Thereafter 8,055,610 Total $ 15,120,211 B. Major Tenants - No individual tenant’s rental revenue, including percentage rents, represented more than 10% of our total revenue for each of the years ended December 31, 2019 , 2018 or 2017 . |
Gain on Sales of Real Estate
Gain on Sales of Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Gain on Sales of Real Estate | Gain on Sales of Real Estate The following table summarizes our properties sold during the periods indicated below (dollars in millions): Year Ended December 31, 2019 2018 2017 Number of properties 93 128 59 Net sales proceeds $ 108.9 $ 142.3 $ 167.0 Gain on sales of real estate $ 30.0 $ 24.6 $ 40.9 These property sales do not represent a strategic shift that will have a major effect on our operations and financial results, and therefore do not require presentation as discontinued operations. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The disclosure for assets and liabilities measured at fair value requires allocation to a three-level valuation hierarchy. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loans and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): At December 31, 2019 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 408.4 $ 417.7 Notes and bonds payable (2) 6,317.6 6,826.1 At December 31, 2018 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 298.4 $ 305.7 Notes and bonds payable (2) 5,400.0 5,430.0 ( 1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $3.0 million at December 31, 2019 , and $4.4 million at December 31, 2018 . Also excludes deferred financing costs of $1.3 million at December 31, 2019 , and $183,000 at December 31, 2018 . (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was $6.3 million at December 31, 2019 , and $10.5 million at December 31, 2018 . Also excludes deferred financing costs of $35.9 million at December 31, 2019 and $33.7 million at December 31, 2018 . The estimated fair values of our mortgages payable assumed in connection with acquisitions and private senior notes payable have been calculated by discounting the future cash flows using an interest rate based upon the relevant forward interest rate curve, plus an applicable credit-adjusted spread. Because this methodology includes unobservable inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values related to our mortgages payable is categorized as level three on the three-level valuation hierarchy. The estimated fair values of our publicly-traded senior notes and bonds payable are based upon indicative market prices and recent trading activity of our senior notes and bonds payable. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to our notes and bonds payable is categorized as level two on the three-level valuation hierarchy. We record interest rate swaps on the consolidated balance sheet at fair value. Prior to our adoption of hedge accounting during October 2018, the change in fair value of interest rate swaps was recognized through interest expense. Following adoption, changes to fair value are recorded to accumulated other comprehensive income, or AOCI. In May 2019, we entered into four cross-currency swaps to exchange £130 million Sterling for $166 million maturing in May 2034, in order to hedge the foreign currency risk associated with our Sterling-denominated intercompany loan receivable from our consolidated foreign subsidiaries. These cross-currency swaps were designated as cash flow hedges on their trade date. Gains and losses representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. The earnings recognition of excluded components is presented in foreign currency and derivative gains, net on our consolidated statements of income and comprehensive income, which is the same caption item as the hedged transactions. The following table summarizes the terms and fair values of our derivative financial instruments at December 31, 2019 and December 31, 2018 (dollars in millions): Derivative Type Hedge Designation Notional Amount Strike Effective Date Maturity Date Fair Value - asset (liability) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Interest rate swap Cash flow $ 7.0 $ 7.2 6.03% 09/25/2012 09/03/2021 $ (0.2 ) $ (0.2 ) Interest rate swap Cash flow 250.0 250.0 1.72% 06/30/2015 06/30/2020 (0.1 ) 3.0 Interest rate swap Cash flow 250.0 250.0 3.04% 10/24/2018 03/24/2024 (14.7 ) (6.8 ) Cross-currency swap (1) Cash flow 41.6 — (2) 05/20/2019 05/22/2034 (2.6 ) — Cross-currency swap (1) Cash flow 41.6 — (3) 05/20/2019 05/22/2034 (2.6 ) — Cross-currency swap (1) Cash flow 41.6 — (4) 05/20/2019 05/22/2034 (2.9 ) — Cross-currency swap (1) Cash flow 41.6 — (5) 05/20/2019 05/22/2034 (3.2 ) — $ 673.4 $ 507.2 $ (26.3 ) $ (4.0 ) (1) Represents British Pound Sterling, or GBP, United States Dollar, or USD, cross-currency swap. (2) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.800% . (3) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.803% . (4) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.745% . (5) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.755% . We measure our derivatives at fair value and include the balances within other assets and accounts payable and accrued expenses on our consolidated balance sheets. We have agreements with each of our derivative counterparties containing provisions under which we could be declared in default on our derivative obligations if repayment of our indebtedness is accelerated by the lender due to our default. We utilize interest rate swap agreements to manage interest rate risk and cross-currency swaps to manage foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, spot and forward rates, as well as option volatility. To comply with the provisions of ASC 820, Fair Value Measurement , we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within level two on the three-level valuation hierarchy, the credit valuation adjustments associated with our derivatives utilize level three inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by ourselves and our counterparties. However, at December 31, 2019 and December 31, 2018, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety are classified as level two on the three-level valuation hierarchy. Unrealized gains and losses in AOCI are reclassified to interest expense in the case of interest rate swaps and to foreign currency gains and losses, net in the case of cross-currency swaps, when the related hedged items are recognized. During 2019 , we reclassified $3.4 million from AOCI as an increase to interest expense for our interest rate swaps and $5.5 million for 2019 in cross-currency swap losses into foreign currency and derivative gains, net. During 2018, there were no outstanding derivatives designated as hedges and accounted for through AOCI. As a result, there were no amounts to reclassify from AOCI during 2018. We expect to reclassify $5.1 million from AOCI as an increase to interest expense relating to interest rate swaps and $1.3 million from AOCI to foreign currency gain relating to cross-currency swaps within the next twelve months. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Cash paid for interest was $275.3 million in 2019 , $251.5 million in 2018 , and $240.4 million in 2017 . Interest capitalized to properties under development was $751,000 in 2019 , $369,000 in 2018 , and $461,000 in 2017 . Cash paid for income taxes was $4.2 million in 2019 , $4.7 million in 2018 , and $3.8 million in 2017 . The following non-cash activities are included in the accompanying consolidated financial statements: A. As a result of the adoption of Accounting Standards Codifications Topic 842, Leases , on January 1, 2019, we recorded $132.0 million of lease liabilities and related right of use assets as lessee under operating leases. B. During 2019, we issued 89,322 common partnership units of Realty Income, L.P. totaling $6.3 million , as partial consideration for an acquisition of properties. C. During 2019, we recorded $5.1 million to noncontrolling interests in connection with the acquisition of a controlling interest in a consolidated joint venture. D. During 2019, we assumed mortgages payable to the third-party lenders of $130.8 million . E. During 2018, we issued 373,797 common partnership units of Realty Income, L.P. as partial consideration for an acquisition of properties, totaling $18.8 million . F. During 2018, we completed the acquisition of a property using $7.5 million in funds that were held in a non-refundable escrow account. G. During 2017, we completed the acquisition of a portfolio of properties by entering into a note payable in the amount of $125.9 million with the seller, maturing in January 2018. This note was paid in full at maturity. Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows ) the following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of the cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows (dollars in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents shown in the consolidated balance sheets $ 54,011 $ 10,387 Impounds related to mortgages payable (1) 12,465 9,555 Restricted escrow deposits (1) 4,529 1,129 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 71,005 $ 21,071 (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash that we are legally entitled to, but that is not immediately available to us. As a result, these amounts were considered restricted as of the dates presented. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan We have a 401(k) plan covering substantially all of our employees. Under our 401(k) plan, employees may elect to make contributions to the plan up to a maximum of 60% of their compensation, subject to limits under the Code. We match 50% of each of our employee’s salary deferrals up to the first 6% of the employee’s eligible compensation. Our aggregate matching contributions each year have been immaterial to our results of operations. |
Common Stock Incentive Plan
Common Stock Incentive Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock Incentive Plan | Common Stock Incentive Plan In 2012, our Board of Directors adopted and stockholders approved the Realty Income Corporation 2012 Incentive Award Plan, or the 2012 Plan, to enable us to motivate, attract and retain the services of directors and employees considered essential to our long-term success. The 2012 Plan offers our directors and employees an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2012 plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 3,985,734 shares. The 2012 Plan has a term of ten years from the date it was adopted by our Board of Directors. The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income and comprehensive income was $13.7 million during 2019, $27.3 million during 2018 (including $11.8 million of accelerated equity awards for our former CEO upon his departure from the company), and $13.9 million during 2017. In October 2018, John P. Case departed as our Chief Executive Officer (CEO) and resigned as a member of our Board of Directors. In connection with his departure, we entered into a severance agreement with Mr. Case. Pursuant to the terms of this severance agreement, Mr. Case received a severance payment, which included both cash and stock compensation components. The total value of cash, stock compensation and professional fees incurred as a result of this severance was $28.3 million ; however, the net amount, after incorporating accruals for CEO compensation previous to this severance, was $18.7 million , which was recognized in general and administrative expense on our 2018 consolidated statement of income and comprehensive income, and which represents the incremental costs incurred per the reconciliation below (dollars in thousands): Cash $ 9,817 Stock compensation 17,902 Professional fees 574 Total value of severance 28,293 Amount accrued for CEO compensation prior to separation (9,642 ) Incremental severance $ 18,651 A. Restricted Stock The following table summarizes our common stock grant activity under our 2012 Plan. 2019 2018 2017 Number of shares Weighted average price (1) Number of shares Weighted average price (1) Number of shares Weighted average price (1) Outstanding nonvested shares, beginning of year 307,821 $ 53.44 475,768 $ 52.32 513,523 $ 48.33 Shares granted 87,327 $ 69.83 183,952 $ 52.21 149,264 $ 59.21 Shares vested (126,363 ) $ 54.45 (310,706 ) $ 51.05 (183,381 ) $ 46.65 Shares forfeited (9,087 ) $ 55.71 (41,193 ) $ 53.06 (3,638 ) $ 56.57 Outstanding nonvested shares, end of each period 259,698 $ 58.39 307,821 $ 53.44 475,768 $ 52.32 (1) Grant date fair value. The vesting schedule for shares granted to non-employee directors is as follows: • For directors with less than six years of service at the date of grant, shares vest in 33.33% increments on each of the first three anniversaries of the date the shares of stock are granted; • For directors with six years of service at the date of grant, shares vest in 50% increments on each of the first two anniversaries of the date the shares of stock are granted; • For directors with seven years of service at the date of grant, shares are 100% vested on the first anniversary of the date the shares of stock are granted; and • For directors with eight or more years of service at the date of grant, there is immediate vesting as of the date the shares of stock are granted. During May 2019, we granted 32,000 shares of common stock to the independent members of our Board of Directors, of which 20,000 shares vested immediately, 4,000 shares vest over a one -year service period, and 8,000 shares vest in equal parts over a three -year service period. In addition, in November 2019, we granted 4,000 shares of common stock to the new member of our Board of Directors, which vests in equal parts over a three -year service period. Shares granted to employees typically vest annually in equal parts over a four -year service period. During 2019 , 51,327 shares were granted to our employees, and vest over a four -year service period. As of December 31, 2019 , the remaining unamortized share-based compensation expense related to restricted stock totaled $10.1 million , which is being amortized on a straight-line basis over the service period of each applicable award. The amount of share-based compensation is based on the fair value of the stock at the grant date. We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and conditions of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares. B. Performance Shares During 2019 , 2018 and 2017 , we granted performance share awards, as well as dividend equivalent rights, to our executive officers. The number of performance shares that vest for each of the three years is based on the achievement of the following performance goals: Performance Awards Metrics Weighting Total shareholder return (“TSR”) relative to MSCI US REIT Index 45 % TSR relative to JP Morgan Net Lease Peers 26 % Dividend per share growth rate 16 % Debt-to-EBITDA ratio 13 % The performance shares are earned based on our performance, and vest 50% on the first and second January 1 after the end of the three -year performance period, subject to continued service. The performance period for the 2017 performance awards began on January 1, 2017 and ended on December 31, 2019. The performance period for the 2018 performance awards began on January 1, 2018 and will end on December 31, 2020. The performance period for the 2019 performance awards began on January 1, 2019 and will end on December 31, 2021. The fair value of the performance shares was estimated on the date of grant using a Monte Carlo Simulation model. The following table summarizes our performance share grant activity: 2019 2018 2017 Number of performance shares Weighted average price (1) Number of performance shares Weighted average price (1) Number of performance shares Weighted average price (1) Outstanding nonvested shares, beginning of year 223,392 $ 58.78 245,309 $ 62.49 159,751 $ 49.95 Shares granted 128,581 $ 65.34 269,868 $ 51.98 124,681 $ 71.79 Shares vested (47,310 ) $ 54.27 (291,785 ) $ 54.88 (39,123 ) $ 41.60 Shares forfeited — $ — — $ — — $ — Outstanding nonvested shares, end of each period 304,663 $ 62.25 223,392 $ 58.78 245,309 $ 62.49 (1) Grant date fair value. As of December 31, 2019 , the remaining share-based compensation expense related to the performance shares totaled $8.7 million and is being recognized on a tranche-by-tranche basis over the service period. C. Restricted Stock Units During 2019 , 2018 and 2017 we also granted restricted stock units that primarily vest over a four -year service period and have the same economic rights as shares of restricted stock: 2019 2018 2017 Number of restricted stock units Weighted average price (1) Number of restricted stock units Weighted average price (1) Number of restricted stock units Weighted average price (1) Outstanding nonvested shares, beginning of year 14,968 $ 54.62 24,869 $ 55.97 18,460 $ 52.65 Shares granted 5,482 $ 69.58 8,383 $ 49.96 10,467 $ 60.56 Shares vested (4,939 ) $ 54.90 (10,118 ) $ 55.01 (4,058 ) $ 52.70 Shares forfeited — $ — (8,166 ) $ 53.45 — $ — Outstanding nonvested shares, end of each period 15,511 $ 59.82 14,968 $ 54.62 24,869 $ 55.97 (1) Grant date fair value. The amount of share-based compensation for the restricted stock units is based on the fair value of our common stock as the grant date. As of December 31, 2019 , the remaining share-based compensation expense related to the restricted stock units totaled $296,000 and is being recognized on a straight-line basis over the service period. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We evaluate performance and make resource allocation decisions on an industry by industry basis. For financial reporting purposes, we have grouped our tenants into 50 activity segments. All of the properties are incorporated into one of the applicable segments. Unless otherwise specified, all segments listed below are located within the U.S. Because almost all of our leases require the tenant to pay or reimburse us for operating expenses, rental revenue is the only component of segment profit and loss we measure. The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants (dollars in thousands): Assets, as of December 31: 2019 2018 Segment net real estate: Automotive service $ 288,453 $ 210,668 Automotive tire services 232,709 238,939 Beverages 279,373 284,910 Child care 208,326 151,640 Convenience stores 2,057,157 1,756,732 Dollar stores 1,427,950 1,117,250 Drug stores 1,618,854 1,490,261 Financial services 389,634 414,613 General merchandise 475,418 317,424 Grocery stores - U.S. (1) 922,349 774,526 Grocery stores - U.K. (1) 663,210 — Health and fitness 1,019,796 882,515 Home improvement 495,305 424,494 Restaurants-casual dining 576,526 559,616 Restaurants-quick service 1,059,155 964,980 Theaters - U.S. 878,103 555,990 Transportation services 769,614 758,133 Wholesale club 396,690 412,203 Other non-reportable segments 2,738,150 2,528,623 Total segment net real estate 16,496,772 13,843,517 Intangible assets: Automotive service 58,854 61,951 Automotive tire services 7,322 8,696 Beverages 1,509 1,765 Child care 21,997 12,277 Convenience stores 131,808 108,714 Dollar stores 82,701 48,842 Drug stores 183,319 165,558 Financial services 17,130 20,426 General merchandise 66,135 43,122 Grocery stores - U.S. (1) 180,197 144,551 Grocery stores - U.K. (1) 153,407 — Health and fitness 74,428 71,609 Home improvement 72,979 57,928 Restaurants-casual dining 23,289 18,153 Restaurants-quick service 52,353 54,448 Theaters - U.S. 36,089 25,811 Transportation services 66,055 73,577 Wholesale club 23,372 26,484 Other non-reportable segments 240,439 255,685 Other corporate assets 564,641 217,369 Total assets $ 18,554,796 $ 15,260,483 Revenue for the years ended December 31, 2019 2018 2017 Segment rental revenue: Automotive service $ 32,365 $ 28,303 $ 25,291 Automotive tire services 31,292 30,078 29,560 Beverages 31,807 31,488 31,174 Child care 31,749 21,865 20,775 Convenience stores 166,755 142,194 111,023 Dollar stores 102,695 94,782 91,076 Drug stores 127,853 129,565 126,555 Financial services 30,189 29,429 28,744 General merchandise 35,366 29,249 23,752 Grocery stores - U.S. (1) 69,691 63,594 50,731 Grocery stores - U.K. (1) 17,819 — — Health and fitness 105,896 94,638 88,146 Home improvement 42,351 37,939 30,324 Restaurants-casual dining 45,238 46,171 43,876 Restaurants-quick service 92,018 72,465 59,638 Theaters - U.S. 87,698 70,560 58,443 Transportation services 66,500 63,565 62,337 Wholesale club 38,117 37,571 37,646 Other non-reportable segments and tenant reimbursements 329,419 298,090 293,215 Rental (including reimbursable) 1,484,818 1,321,546 1,212,306 Other 6,773 6,292 3,462 Total revenue $ 1,491,591 $ 1,327,838 $ 1,215,768 (1) During 2019, we acquired 17 grocery stores and one theater located in the U.K. Our investments in industries outside of the U.S. are managed as separate operating segments. The U.K. theater is included in other non-reportable segments. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations. At December 31, 2019 , we had commitments of $6.5 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of December 31, 2019 , we had committed $16.0 million under construction contracts, which is expected to be paid in the next twelve months. We have certain properties that are subject to ground leases which are accounted for as operating leases. At December 31, 2019 , minimum future rental payments for the next five years and thereafter are as follows (dollars in millions): Ground Leases Paid by Realty Income (1) Ground Leases Paid by Our Tenants (2) Total 2020 $ 1.6 $ 13.5 $ 15.1 2021 1.4 13.3 14.7 2022 1.4 13.2 14.6 2023 1.3 13.2 14.5 2024 1.3 13.3 14.6 Thereafter 18.9 68.9 87.8 Total $ 25.9 $ 135.4 $ 161.3 Present value adjustment for remaining lease payments (3) (39.0 ) Lease liability - operating leases, net $ 122.3 (1) Realty Income currently pays the ground lessors directly for the rent under the ground leases. (2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible. (3 ) The range of discount rates used to calculate the present value of the lease payments is 2.42% to 5.50% . At December 31, 2019 , the weighted average discount rate is 4.29% and the weighted average remaining lease term is 12.3 years . The discount rates are derived using a hypothetical corporate credit curve for the ground leases based on our outstanding senior notes and relevant market data. The discount rates are specific for individual leases primarily based on the lease term. On January 1, 2019, we adopted Topic 842, Leases using the effective date method and elected the practical expedients available for implementation under the standard. As a result, on December 31, 2018 we do not have a lease liability for operating leases. At December 31, 2018 , minimum future rental payments for the next five years and thereafter were as follows (dollars in millions): Ground Leases Paid by Realty Income (1) Ground Leases Paid by Our Tenants (2) Total 2019 $ 1.5 $ 13.5 $ 15.0 2020 1.4 13.5 14.9 2021 1.2 13.2 14.4 2022 1.2 13.1 14.3 2023 1.2 13.1 14.3 Thereafter 19.8 82.0 101.8 Total $ 26.3 $ 148.4 $ 174.7 (1) Realty Income currently pays the ground lessors directly for the rent under the ground leases. (2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events • In January and February 2020, we declared a dividend of $0.2325 , which will be paid in February 2020 and March 2020, respectively. • 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. • Also in January 2020, we announced that Paul Meurer, our EVP, Chief Financial Officer and Treasurer, is leaving the company. To ensure a smooth transition, Mr. Meurer will serve as a senior advisor to the company through March 31, 2020. The company has begun a search for a new Chief Financial Officer. |
Consolidated Quarterly Financia
Consolidated Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Consolidated Quarterly Financial Data | CONSOLIDATED QUARTERLY FINANCIAL DATA (dollars in thousands, except per share data) (unaudited) (not covered by Report of Independent Registered Public Accounting Firm) First Quarter Second Quarter Third Quarter Fourth Quarter Year 2019 Total revenue $ 354,365 $ 365,450 $ 374,247 $ 397,529 $ 1,491,591 Depreciation and amortization expense 137,517 150,426 149,424 156,594 593,961 Interest expense 70,020 72,488 73,410 75,073 290,991 Other expenses 42,861 54,143 52,139 52,269 201,412 Net income 111,230 95,420 101,275 129,553 437,478 Net income available to common stockholders 110,942 95,194 101,049 129,297 436,482 Net income per common share Basic and diluted 0.37 0.31 0.32 0.39 1.38 Dividends paid per common share 0.6720 0.6780 0.6795 0.6810 2.7105 2018 Total revenue $ 318,295 $ 328,886 $ 338,081 $ 342,576 $ 1,327,838 Depreciation and amortization expense 131,103 133,999 136,967 137,711 539,780 Interest expense 59,415 66,628 69,342 70,635 266,020 Other expenses 47,680 39,349 40,302 54,752 182,083 Net income 83,315 96,697 99,283 85,303 364,598 Net income available to common stockholders 83,163 96,380 98,999 85,072 363,614 Net income per common share Basic and diluted 0.29 0.34 0.34 0.29 1.26 Dividends paid per common share 0.6505 0.6585 0.6600 0.6615 2.6305 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at Which Carried at Close of Period (Notes 3, 4 and 6) Description Number of Properties (Note 1) Encumbrances (Note 2) Land Buildings, Improvements and Acquisition Fees Improvements Carrying Costs Land Buildings, Improvements and Acquisition Fees Total Accumulated Depreciation (Note 5) Date of Construction Date Acquired Life on which depreciation in latest Income Statement is Computed (in Years) U.S. Aerospace 5 14,409,617 6,890,774 110,783,380 216,638 — 6,890,774 111,000,018 117,890,792 28,630,112 1994-2013 6/20/2011-6/27/2013 25-35 Apparel stores 30 13,925,000 58,918,135 141,491,607 3,983,429 218,760 58,918,135 145,693,796 204,611,931 47,856,451 1960-2012 10/30/1987-12/2/2019 4-35 Automotive collision services 75 — 52,729,547 119,655,706 1,799,680 10,000 52,729,547 121,465,386 174,194,933 28,390,510 1928-2018 8/30/2002-6/11/2019 19-25 Automotive parts 249 6,637,578 96,978,473 248,888,548 4,622,175 826,885 96,978,473 254,337,608 351,316,081 64,101,899 1969-2018 8/6/1987-12/4/2019 0-25 Automotive service 303 — 143,625,084 210,090,349 582,498 164,051 143,625,084 210,836,898 354,461,982 66,008,493 1920-2017 10/2/1985-12/2/2019 0-25 Automotive tire services 196 — 122,250,160 225,175,623 384,194 97,335 122,250,160 225,657,152 347,907,312 115,198,601 1947-2017 8/28/1985-12/2/2019 0-40 Beverages 18 — 213,728,623 105,911,254 — 148 213,728,623 105,911,402 319,640,025 40,267,343 2010 6/25/2010-12/15/2011 25 Book Stores 1 — 998,250 3,696,707 129,751 79 998,250 3,826,537 4,824,787 3,433,527 1996 3/11/1997 24-25 Child care 274 — 95,553,417 212,059,451 5,053,358 917,720 95,553,417 218,030,529 313,583,946 105,257,799 1961-2018 12/22/1981-10/25/2019 0-25 Consumer appliances 4 — 8,901,103 85,212,965 109,951 55 8,901,103 85,322,971 94,224,074 13,916,454 2004-2019 7/31/2012-12/27/2019 0 Consumer electronics 10 — 14,623,047 21,833,858 884,168 51,616 14,623,047 22,769,642 37,392,689 11,068,011 1992-1998 6/9/1997-11/3/2017 22-25 Consumer goods 4 — 7,663,458 124,173,738 894,295 — 7,663,458 125,068,033 132,731,491 22,472,474 1987-2011 1/22/2013-9/22/2015 34-35 Convenience stores 1,246 — 1,047,085,568 1,333,428,902 (733,628 ) 145,550 1,047,085,568 1,332,840,824 2,379,926,392 322,769,573 1949-2018 3/3/1995-12/2/2019 0-26 Crafts and novelties 19 — 20,948,352 70,829,924 881,481 440,482 20,948,352 72,151,887 93,100,239 14,466,453 1974-2017 11/26/1996-12/2/2019 22-35 Diversified industrial 6 19,397,723 10,231,370 108,326,826 114,454 — 10,231,370 108,441,280 118,672,650 17,452,956 1989-2015 9/19/2012-2/3/2016 25-35 Dollar stores 1,302 11,127,000 428,220,601 1,249,436,205 1,459,285 8,879 428,220,601 1,250,904,369 1,679,124,970 251,174,478 1935-2019 2/3/1998-12/20/2019 0-25 Drug stores 387 130,834,786 578,997,186 1,340,130,844 4,948,980 100,379 578,997,186 1,345,180,203 1,924,177,389 305,323,601 1965-2015 9/30/1998-12/16/2019 0-35 Education 14 — 6,739,123 21,648,901 472,942 155,418 6,739,123 22,277,261 29,016,384 17,188,255 1980-2000 12/19/1984-6/28/2006 0-25 Electric utilities 1 — 1,450,000 9,209,989 — — 1,450,000 9,209,989 10,659,989 1,678,439 1983 8/30/2013 35 Entertainment 10 — 28,373,479 10,617,464 327,607 — 28,373,479 10,945,071 39,318,550 6,178,632 1989-1999 3/26/1998-9/11/2014 24-25 Equipment services 7 7,073,296 4,116,067 54,045,575 689,663 140 4,116,067 54,735,378 58,851,445 14,967,071 2000-2014 7/3/2003-12/2/2019 25-35 Financial services 239 13,800,000 115,487,739 351,992,876 (3,690,753 ) 101,099 115,487,739 348,403,222 463,890,961 74,256,644 1807-2015 3/10/1987-6/29/2018 0-35 Food processing 7 28,867,158 13,226,562 153,588,645 210,469 — 13,226,562 153,799,114 167,025,676 20,948,814 1987-2019 4/1/2011-9/27/2019 25-35 General merchandise 100 5,070,372 104,508,825 436,513,003 (2,938,508 ) 557,868 104,508,825 434,132,363 538,641,188 63,223,300 1964-2020 8/6/1987-12/2/2019 0-35 Government services 16 — 8,093,555 121,514,780 2,981,604 — 8,093,555 124,496,384 132,589,939 25,784,980 1983-2011 9/17/2009-1/22/2013 25-35 Grocery stores 132 38,621,000 264,275,526 780,156,042 1,811,459 325,183 264,275,526 782,292,684 1,046,568,210 124,219,525 1948-2019 5/26/1988-12/16/2019 0-35 Health and beauty 2 — 2,475,474 42,821,046 68,912 — 2,475,474 42,889,958 45,365,432 1,979,227 2005-2017 11/1/2006-4/13/2018 25-35 Health and fitness 103 4,281,354 246,562,831 990,068,700 8,099,776 172,145 246,562,831 998,340,621 1,244,903,452 225,107,912 1940-2019 5/31/1995-12/2/2019 0-25 Health care 64 4,079,345 46,055,832 298,433,438 3,748,031 1,314,067 46,055,832 303,495,536 349,551,368 55,246,790 1930-2018 9/9/1991-12/2/2019 14-35 Home furnishings 73 9,700,000 35,099,395 113,295,067 2,562,697 372,213 35,099,395 116,229,977 151,329,372 39,350,470 1960-2015 1/24/1984-12/2/2019 0-35 Home improvement 77 17,725,463 186,981,286 375,408,283 2,113,587 75,210 186,981,286 377,597,080 564,578,366 69,273,547 1950-2009 12/22/1986-12/2/2019 0-35 Insurance 1 — 634,343 6,331,030 — — 634,343 6,331,030 6,965,373 1,867,654 2012 8/28/2012 25 Jewelry 4 — — 8,268,989 — — — 8,268,989 8,268,989 2,301,535 2006-2008 1/22/2013 25 Machinery 1 — 1,630,917 12,938,430 — — 1,630,917 12,938,430 14,569,347 3,859,965 2010 7/31/2012 25 Motor vehicle dealerships 28 — 115,897,045 143,335,317 — 230 115,897,045 143,335,547 259,232,592 50,293,566 1975-2017 5/13/2004-3/29/2019 0-25 Office supplies 8 — 8,551,005 15,480,491 955,594 349,599 8,551,005 16,785,684 25,336,689 13,661,632 1995-2014 1/29/1997-12/2/2019 22-25 Other manufacturing 7 23,897,971 8,893,136 104,286,273 1,663,646 240,191 8,893,136 106,190,110 115,083,246 18,426,589 1989-2016 1/22/2013-12/21/2016 33-35 Packaging 10 2,164,411 20,323,553 163,714,298 2,480,122 — 20,323,553 166,194,420 186,517,973 27,809,312 1965-2016 6/3/2011-12/20/2017 24-35 Initial Cost to Company Cost Capitalized Subsequent to Acquisition Gross Amount at Which Carried at Close of Period (Notes 3, 4 and 6) Description Number of Properties (Note 1) Encumbrances (Note 2) Land Buildings, Improvements and Acquisition Fees Improvements Carrying Costs Land Buildings, Improvements and Acquisition Fees Total Accumulated Depreciation (Note 5) Date of Construction Date Acquired Life on which depreciation in latest Income Statement is Computed (in Years) Paper 2 — 2,462,414 11,934,685 44,759 — 2,462,414 11,979,444 14,441,858 3,405,630 2002-2006 5/2/2011-12/21/2012 25-35 Pet supplies and services 33 2,509,000 21,563,825 101,699,137 4,604,704 243,582 21,563,825 106,547,423 128,111,248 21,261,419 1950-2019 12/22/1981-12/31/2019 11-35 Restaurants - casual dining 284 — 241,578,772 459,061,392 6,015,925 2,104,667 241,578,772 467,181,984 708,760,756 132,235,171 1965-2018 3/12/1981-12/2/2019 0-40 Restaurants - quick service 907 — 429,303,832 781,719,427 501,803 226,201 429,303,832 782,447,431 1,211,751,263 152,596,196 1967-2019 12/9/1976-12/4/2019 0-26 Shoe stores 3 8,519,815 6,251,472 35,793,479 214,466 214,706 6,251,472 36,222,651 42,474,123 9,719,936 1996-2008 3/26/1998-1/22/2013 23-35 Sporting goods 22 — 36,258,595 107,396,447 1,854,750 178,206 36,258,595 109,429,403 145,687,998 26,537,565 1950-2016 5/1/1990-12/2/2019 0-25 Telecommunications 7 8,578,171 9,269,789 68,360,132 1,484,423 21,884 9,269,789 69,866,439 79,136,228 17,849,025 1990-2016 6/26/1998-12/10/2015 22-35 Theaters 79 — 231,747,795 829,701,257 10,680,179 270 231,747,795 840,381,706 1,072,129,501 194,026,206 1930-2014 7/27/2000-8/13/2019 0-25 Transportation services 58 19,380,313 109,027,503 824,491,647 (3,820,929 ) 401,593 109,027,503 821,072,311 930,099,814 160,485,427 1958-2016 4/1/2003-9/6/2016 24-36 Wholesale clubs 32 17,820,000 170,229,880 325,098,377 (3,889,998 ) — 170,229,880 321,208,379 491,438,259 94,747,849 1985-2010 9/30/2011-4/1/2014 0-25 Other 6 — 7,254,447 24,355,185 795,984 18,796 7,254,447 25,169,965 32,424,412 5,639,308 1982-1997 5/29/1984-9/13/2013 0-35 U.K. Grocery stores 17 — 310,089,274 360,054,272 — — 310,089,274 360,054,272 670,143,546 6,933,409 1975-2014 5/23/2019-12/20/2019 25-115 Theaters 1 — 2,060,151 2,921,471 — — 2,060,151 2,921,471 4,981,622 4,869 2011 12/18/2019 25 6,484 408,419,373 5,704,816,590 13,857,381,432 65,373,623 10,055,207 5,704,816,590 13,932,810,262 19,637,626,852 3,140,854,604 REALTY INCOME CORPORATION AND SUBSIDIARIES SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION Note 1. Realty Income Corporation owns 6,417 single-tenant properties in the United States and Puerto Rico, our corporate headquarters property in San Diego, California and 18 properties in the United Kingdom. Crest Net Lease, Inc. owns 17 properties. Realty Income Corporation also owns 31 multi-tenant properties located in the United States. Note 2. Includes mortgages payable secured by 92 properties, but excludes unamortized net debt premiums of $3.0 million. Note 3. The aggregate cost for federal income tax purposes for Realty Income Corporation is $20,070,200,483 and for Crest Net Lease, Inc. is $73,548,861. Note 4. The following is a reconciliation of total real estate carrying value for the years ended December 31: 2019 2018 2017 Balance at Beginning of Period 16,566,601,986 15,027,043,415 13,904,519,436 Additions During Period: Acquisitions 3,644,884,106 1,802,745,841 1,531,960,811 Less amounts allocated to acquired lease intangible assets and liabilities on our Consolidated Balance Sheets (401,318,627 ) (89,474,897 ) (238,556,294 ) Improvements, Etc. 17,447,145 23,043,158 11,067,322 Other (Leasing Costs and Building Adjustments as a result of net debt premiums) 2,740,797 2,839,574 1,584,152 Total Additions 3,263,753,421 1,739,153,676 1,306,055,991 Deductions During Period: Cost of Real Estate sold 129,736,613 165,023,825 150,394,756 Cost of Equipment sold 11,200 15,650 — Releasing costs 673,647 232,089 109,986 Other (including Provisions for Impairment) 87,951,488 34,323,541 33,027,270 Total Deductions 218,372,948 199,595,105 183,532,012 Foreign Currency Translation 25,644,393 — — Balance at Close of Period 19,637,626,852 16,566,601,986 15,027,043,415 (1) 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. Note 5. The following is a reconciliation of accumulated depreciation for the years ended: Balance at Beginning of Period 2,723,085,290 2,350,544,126 2,000,728,517 Additions During Period - Provision for Depreciation 481,498,979 432,482,396 393,415,491 Deductions During Period: Accumulated depreciation of real estate and equipment sold or disposed of 64,053,838 59,941,232 43,599,882 Foreign Currency Translation 324,174 — — Balance at Close of Period 3,140,854,604 2,723,085,290 2,350,544,126 Note 6. In 2019, provisions for impairment were recorded on fifty-one Realty Income properties. In 2018, provisions for impairment were recorded on forty-four Realty Income properties. In 2017, provisions for impairment were recorded on twenty-six Realty Income properties. See report of independent registered public accounting firm. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Federal Income Taxes | Federal Income Taxes . We have elected to be taxed as a REIT, as defined above, under the Internal Revenue Code of 1986, as amended, or the Code. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our taxable net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income and comprehensive income represent amounts paid by Realty Income and its subsidiaries for city and state income and franchise taxes and for U.K. income taxes. Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for financial reporting purposes due to differences in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things. We regularly analyze our various federal and state filing positions and only recognize the income tax effect in our financial statements when certain criteria regarding uncertain income tax positions have been met. We believe that our income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no provisions for uncertain income tax positions have been recorded in our financial statements. |
Net Income per Common Share | Net Income per Common Share. Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to common stockholders, plus income attributable to dilutive shares and convertible common units, for the period by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. |
Revenue Recognition and Accounts Receivable | Revenue Recognition and Accounts Receivable . The majority of our leases are accounted for as operating leases. Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Any rental revenue contingent upon a tenant’s sales is recognized only after the tenant exceeds their sales breakpoint. Rental increases based upon changes in the consumer price indexes are recognized only after the changes in the indexes have occurred and are then applied according to the lease agreements. Contractually obligated rental revenue from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursements in the period when such costs are incurred. Taxes and operating expenses paid directly by the tenant are recorded on a net basis. On January 1, 2019, we adopted ASU 2016-02 (Topic 842, Leases ), which amended Topic 840, Leases. As our leases are accounted for as operating leases under both Topic 840 and 842, our lease revenue recognition policy was largely unaffected by this update. For further information, see Newly Adopted Accounting Standards section below. |
Principles of Consolidation | Principles of Consolidation . The accompanying consolidated financial statements include the accounts of Realty Income and other subsidiaries for which we make operating and financial decisions (i.e. control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination or asset acquisition was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments. |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash . We consider all short-term, highly liquid investments that are readily convertible to cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Our cash equivalents are primarily investments in United States government money market funds. Restricted cash includes cash proceeds from the sale of assets held by qualified intermediaries in anticipation of the acquisition of replacement properties in tax-free exchanges under Section 1031 of the Code, impounds related to mortgages payable and cash that is not immediately available to Realty Income (i.e. escrow deposits for future acquisitions). Cash accounts maintained on behalf of Realty Income in demand deposits at commercial banks and money market funds may exceed federally insured levels or may be held in accounts without any federal insurance or any other insurance or guarantee. However, Realty Income has not experienced any losses in such accounts. |
Real Estate | Gain on Sales of Properties . When real estate is sold, the related net book value of the applicable assets is removed and a gain from the sale is recognized in our consolidated statements of income and comprehensive income. We record a gain from the sale of real estate provided that various criteria, relating to the terms of the sale and any subsequent involvement by us with the real estate, have been met. Allocation of the Purchase Price of Real Estate Acquisitions . A majority of our acquisitions qualify as asset acquisitions and the transaction costs associated with those acquisitions are capitalized. When acquiring a property for investment purposes, we typically allocate the cost of real estate acquired, inclusive of transaction costs, to: (1) land, (2) building and improvements, and (3) identified intangible assets and liabilities, based in each case on their relative estimated fair values. Intangible assets and liabilities consist of above-market or below-market lease value of in-place leases and the value of in-place leases, as applicable. In an acquisition of multiple properties, we must also allocate the purchase price among the properties. The allocation of the purchase price is based on our assessment of estimated fair value and is often based upon the expected future cash flows of the property and various characteristics of the markets where the property is located. In addition, any assumed mortgages are recorded at their estimated fair values. The estimated fair values of our mortgages payable have been calculated by discounting the future cash flows using applicable interest rates that have been adjusted for factors, such as industry type, tenant investment grade, maturity date, and comparable borrowings for similar assets. Our estimated fair value determinations are based on management’s judgment, utilizing various factors, including: market land and building values, market rental rates, discount rates and capitalization rates. Our methodology for measuring and allocating the fair value of real estate acquisitions includes both observable market data (categorized as level 2 on the three-level valuation hierarchy of Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement), and unobservable inputs that reflect our own internal assumptions (categorized as level 3 under ASC Topic 820). Given the significance of the unobservable inputs we believe the allocations of fair value of real estate acquisitions should be categorized as level 3 under ASC Topic 820. For certain of our purchase price allocations we have used the assistance of an independent third party real estate valuation firm. The allocation of tangible assets (which includes land and buildings/improvements) of an acquired property with an in-place lease is based upon relative fair value. Land is typically valued utilizing the sales comparison (or market) approach. Buildings and improvements are typically valued under the replacement cost approach. In allocating the fair value to identified intangibles for above-market or below-market leases, an amount is recorded based on the present value of the difference between (i) the contractual amount to be paid pursuant to the in-place lease and (ii) our estimate of fair market lease rate for the corresponding in-place lease, measured over the remaining term of the lease. The value of in-place leases is determined by our estimated costs related to acquiring a tenant and the carrying costs that would be incurred over the vacancy period to locate a tenant if the property were vacant, considering market conditions and costs to execute similar leases at the time of acquisition. The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income and comprehensive income. The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to depreciation and amortization expense over the remaining periods of the respective leases. If a lease is terminated prior to its stated expiration, all unamortized amounts relating to that lease are recorded to revenue or expense as appropriate. Depreciation and Amortization . Land, buildings and improvements are recorded and stated at cost. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. Buildings and improvements that are under redevelopment, or are being developed, are carried at cost and no depreciation is recorded on these assets. Additionally, amounts essential to the development of the property, such as pre-construction, development, construction, interest and other costs incurred during the period of development are capitalized. We cease capitalization when the property is available for occupancy upon substantial completion of tenant improvements, but in any event no later than one year from the completion of major construction activity. Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 25 years or 35 years Building improvements 4 to 20 years Tenant improvements and lease commissions The shorter of the term of the related lease or useful life Acquired in-place leases Remaining terms of the respective leases Provision for Impairment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we utilize in this analysis include projected rental rates, estimated holding periods, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases. If a property was previously reclassified as held for sale but the applicable criteria for this classification are no longer met, the property is reclassified to real estate held for investment. A property that is reclassified to held for investment is measured and recorded at the lower of (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for investment, or (ii) the fair value at the date of the subsequent decision not to sell. Twenty-three properties were classified as held for sale at December 31, 2019 . We do not depreciate properties that are classified as held for sale. The following table summarizes provisions for impairment during the periods indicated below (dollars in millions): Year Ended December 31, 2019 2018 2017 Total provisions for impairment $ 40.2 $ 26.3 $ 14.8 Number of properties: Classified as held for sale 9 1 — Classified as held for investment 5 3 2 Sold 37 40 24 |
Equity Offering Costs | Equity Offering Costs. Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in-capital on our consolidated balance sheets. |
Noncontrolling Interests | Noncontrolling Interests. Noncontrolling interests are reflected on our consolidated balance sheets as a component of equity. In accordance with the applicable accounting guidance, noncontrolling interests acquired prior to October 1, 2017 were recorded initially at fair value based on the price of the applicable units issued or contributions made, and subsequently adjusted each period for distributions, additional contributions and the allocation of net income attributable to the noncontrolling interests. Noncontrolling interests issued or assumed subsequent to October 1, 2017, were recorded based on the proportional share of equity in the entity. |
Derivatives and Hedging Activities | Derivative and Hedging Activities. We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. We may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or we elect not to apply hedge accounting. As of December 31, 2019 we had three interest rate swaps in place, including one on each of our $250.0 million unsecured term loans and the third on an assumed mortgage loan. Our objective in using derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. In October 2018, we designated these three interest rate swaps as hedges and adopted hedge accounting treatment in accordance with Topic 815, Derivatives and Hedging . From the adoption date through the end of 2019, the effective portion of gains or losses on our interest rate swaps were recorded in accumulated other comprehensive loss on our consolidated balance sheet as of December 31, 2019, instead of through interest expense on our consolidated statements of income and comprehensive income. In May 2019, we entered into four cross-currency swaps to exchange £130 million Sterling for $166 million maturing in May 2034, in order to hedge the foreign currency risk associated with our Sterling-denominated intercompany loan receivable from our consolidated foreign subsidiaries. These cross-currency swaps were designated as cash flow hedges on their trade date. Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in earnings over the life of the hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. The earnings recognition of excluded components is presented in foreign currency and derivative gains, net on our consolidated statements of income and comprehensive income, which is the same caption item as the hedged transactions. |
Use of Estimates | Use of Estimates . The consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles, or GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications . During the fourth quarter of 2019, we reclassified Goodwill, which was previously presented in its own caption on the consolidated balance sheets, into Other Assets for all comparative periods. |
Newly Adopted Accounting Standards | Newly Adopted Accounting Standards. In February 2016, the FASB issued ASU 2016-02 (Topic 842, Leases ), which replaced Topic 840, Leases . Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of our leases remain classified as operating leases, and we continue to recognize lease income on a generally straight-line basis over the lease term. Although primarily a lessor, we are also a lessee under several ground lease arrangements. We adopted Topic 842, Leases , effective as of January 1, 2019 using the effective date method, and elected the practical expedients available for implementation under the standard for all classes of underlying assets. As a result, we recognize lease obligations for ground leases designated as operating and financing leases with corresponding right of use assets and liabilities (see note 3). Additionally, above-market rents on certain of our leases under which we are a lessor are accounted for as financing receivables amortizing over the lease term, and below-market rents on certain of our leases under which we are a lessor are accounted for as prepaid rent (see note 3). Also, as a result of the adoption of this standard, tenant reimbursable revenue and property expenses are now presented on a gross basis as both tenant reimbursement revenue included in rental revenue, and as a reimbursable expense included in property expenses, respectively, on our consolidated statements of income and comprehensive income. Property taxes and insurance paid directly by the lessee to a third party will continue to be presented on a net basis. These presentation changes had no impact on our results of operations. As a result, there was no restatement of prior issued financial statements and, similarly, no cumulative effect adjustment to opening equity; however, we have elected to aggregate prior period tenant reimbursement revenue within rental revenue to be consistent with the current period presentation within the statements of income and comprehensive income. In connection with our acquisition of properties in the U.K. during the second quarter of 2019, we adopted accounting guidance applicable under Topic 830, Foreign Currency Matters . The functional currency of the U.K. subsidiaries holding the acquired properties is the Great British Pound (Sterling). Assets and liabilities from our foreign-owned subsidiaries are translated into U.S. dollars using the exchange rate in effect at the consolidated balance sheet date. Equity accounts are translated at historical rates, except for retained earnings, whereas the impact is calculated via the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rates during the period. The cumulative translation adjustments from our U.K. subsidiaries are recorded in accumulated other comprehensive income (loss) in the consolidated statements of equity. We have intercompany debt denominated in pound sterling, which is the same currency as the functional currency of our U.K. subsidiaries. When this debt is remeasured against the functional currency of the Company, which is the U.S. dollar, a gain or loss can result. Such transaction gains or losses realized upon settlement of a foreign currency transaction, which may include intercompany transactions, are included in net income under the caption ‘Foreign currency and derivative gains, net'. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of the denominator of the diluted net income per common share computation | The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation. 2019 2018 2017 Weighted average shares used for the basic net income per share computation 315,837,012 289,427,430 273,465,680 Incremental shares from share-based compensation 322,265 179,532 154,050 Weighted average partnership common units convertible to common shares that were dilutive — 317,022 317,022 Weighted average shares used for diluted net income per share computation 316,159,277 289,923,984 273,936,752 Unvested shares from share-based compensation that were anti-dilutive 8,113 13,148 32,205 Weighted average partnership common units convertible to common shares that were anti-dilutive 442,073 297,576 88,182 |
Schedule of estimated useful lives of assets | Properties are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows: Buildings 25 years or 35 years Building improvements 4 to 20 years Tenant improvements and lease commissions The shorter of the term of the related lease or useful life Acquired in-place leases Remaining terms of the respective leases |
Schedule of provisions for impairment | The following table summarizes provisions for impairment during the periods indicated below (dollars in millions): Year Ended December 31, 2019 2018 2017 Total provisions for impairment $ 40.2 $ 26.3 $ 14.8 Number of properties: Classified as held for sale 9 1 — Classified as held for investment 5 3 2 Sold 37 40 24 |
Supplemental Detail for Certa_2
Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of acquired lease intangible assets, net | December 31, December 31, A. Lease intangible assets, net, consist of the following at: 2019 2018 In-place leases $ 1,612,153 $ 1,321,979 Accumulated amortization of in-place leases (627,676 ) (546,573 ) Above-market leases 710,275 583,109 Accumulated amortization of above-market leases (201,369 ) (158,918 ) $ 1,493,383 $ 1,199,597 |
Schedule of other assets, net | December 31, December 31, B. Other assets, net, consist of the following at: 2019 2018 Right of use asset - operating leases, net $ 120,533 $ — Financing receivables 81,892 — Right of use asset - financing leases 36,901 — Non-refundable escrow deposits 14,803 200 Goodwill 14,430 14,630 Impounds related to mortgages payable 12,465 9,555 Prepaid expenses 11,839 11,595 Credit facility origination costs, net 11,453 14,248 Value-added tax receivable 9,682 — Corporate assets, net 5,251 5,681 Restricted escrow deposits 4,529 1,129 Derivative assets and receivables - at fair value 12 3,100 Other items 4,871 1,853 $ 328,661 $ 61,991 |
Schedule of distributions payable | December 31, December 31, C. Distributions payable consist of the following declared distributions at: 2019 2018 Common stock distributions $ 76,622 $ 67,636 Noncontrolling interests distributions 106 153 $ 76,728 $ 67,789 |
Schedule of accounts payable and accrued expenses | December 31, December 31, D. Accounts payable and accrued expenses consist of the following at: 2019 2018 Notes payable - interest payable $ 75,114 $ 73,094 Derivative liabilities and payables - at fair value 26,359 7,001 Property taxes payable 18,626 14,511 Value-added tax payable 13,434 — Accrued costs on properties under development 5,870 8,137 Mortgages, term loans, and credit line - interest payable 1,729 1,596 Other items 35,907 29,426 $ 177,039 $ 133,765 |
Schedule of acquired lease intangible liabilities, net | December 31, December 31, E. Lease intangible liabilities, net, consist of the following at: 2019 2018 Below-market leases $ 447,522 $ 404,938 Accumulated amortization of below-market leases (114,419 ) (94,072 ) $ 333,103 $ 310,866 |
Schedule of other liabilities | December 31, December 31, F. Other liabilities consist of the following at: 2019 2018 Rent received in advance and other deferred revenue $ 127,687 $ 115,380 Lease liability - operating leases, net 122,285 — Security deposits 6,303 6,093 Lease liability - financing leases 5,946 — Capital lease obligations — 5,636 $ 262,221 $ 127,109 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of acquisitions | Below is a summary of our acquisitions for the year ended December 31, 2019 : Number of Properties Square Feet (in millions) Investment ($ in millions) Weighted Average Lease Term (Years) Initial Average Cash Lease Yield Year Ended December 31, 2019 (1) Acquisitions - U.S. (in 45 states) 753 11.6 $ 2,860.8 13.0 6.8 % Acquisitions - U.K. (2) 18 1.6 797.8 15.6 5.2 % Total Acquisitions 771 13.2 3,658.6 13.4 6.4 % Properties under Development - U.S. 18 0.5 56.6 15.1 7.3 % Total (3) 789 13.7 $ 3,715.2 13.5 6.4 % (1) None of our investments during 2019 caused any one tenant to be 10% or more of our total assets at December 31, 2019 . All of our 2019 investments in acquired properties are 100% leased at the acquisition date. (2) Represents investments of £625.8 million Sterling during the year ended December 31, 2019 converted at the applicable exchange rate on the date of acquisition. (3) The tenants occupying the new properties operate in 31 industries, and are 94.6% retail and 5.4% industrial, based on rental revenue. Approximately 36% of the rental revenue generated from acquisitions during 2019 is from investment grade rated tenants, their subsidiaries or affiliated companies. Below is a summary of our acquisitions for the year ended December 31, 2018 : Number of Properties Square Feet (in millions) Investment ($ in millions) Weighted Average Lease Term (Years) Initial Average Cash Lease Yield Year Ended December 31, 2018 (1) Acquisitions - U.S. (in 39 states) 750 4.1 $ 1,717.2 14.9 6.3 % Properties under Development - U.S. 14 1.1 80.3 12.3 6.9 % Total (2) 764 5.2 1,797.5 14.8 6.4 % (1) None of our investments during 2018 caused any one tenant to be 10% or more of our total assets at December 31, 2018 . All of our 2018 investments in acquired properties are 100% leased at the acquisition date. (2) The tenants occupying the new properties operated in 21 industries, and the property types consisted of 96.3% retail and 3.7% industrial, based on rental revenue. Approximately 59% of the rental revenue generated from acquisitions during 2018 was from investment grade rated tenants, their subsidiaries or affiliated companies. |
Schedule of future impact related to amortization of above-market, below-market and in-place lease intangibles | The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at December 31, 2019 (in thousands): Net decrease to rental revenue Increase to amortization expense 2020 $ (22,911 ) $ 122,982 2021 (21,756 ) 115,235 2022 (20,201 ) 103,268 2023 (18,685 ) 90,965 2024 (17,145 ) 82,394 Thereafter (75,105 ) 469,633 Totals $ (175,803 ) $ 984,477 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) - Mortgages Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Summary of mortgages payable | The following is a summary of all our mortgages payable as of December 31, 2019 and 2018 , respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Average Remaining Years Until Maturity Remaining Principal Balance Unamortized Premium and Deferred Finance Costs Balance, net Mortgage Payable Balance 12/31/2019 92 4.9 % 4.6 % 3.1 $ 408,419 $ 1,700 $ 410,119 12/31/2018 60 5.1 % 4.6 % 3.2 $ 298,377 $ 4,192 $ 302,569 (1) At December 31, 2019 , there were 27 mortgages on 92 properties. At December 31, 2018 , there were 26 mortgages on 60 properties. The mortgages require monthly payments with principal payments due at maturity. At December 31, 2019 , the mortgages were at fixed interest rates, except for one variable rate mortgage on one property totaling $7.1 million , which has been swapped to a fixed interest rate. At December 31, 2018 , the mortgages were at fixed rates, except for two mortgages on two properties totaling $23.3 million . After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totaled $16.0 million at December 31, 2018 . (2) Stated interest rates ranged from 3.8% to 6.9% at each of December 31, 2019 and December 31, 2018 . (3) Effective interest rates ranged from 3.8% to 7.6% at December 31, 2019 , while effective interest rates ranged from 1.1% to 7.7% at December 31, 2018 . |
Schedule of maturity of debt, net | The following table summarizes the maturity of mortgages payable, excluding net premiums of $3.0 million and deferred financing costs of $1.3 million , as of December 31, 2019 (dollars in millions): Year of Maturity Principal 2020 $ 84.2 2021 68.8 2022 111.8 2023 20.6 2024 112.2 Thereafter 10.8 Totals $ 408.4 |
Notes Payable (Tables)
Notes Payable (Tables) - Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Schedule of unsecured notes and bonds | Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): December 31, 2019 December 31, 2018 5.750% notes, issued in June 2010 and due in January 2021 $ 250 $ 250 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 950 950 4.650% notes, issued in July 2013 and due in August 2023 750 750 3.875% notes, issued in June 2014 and due in July 2024 350 350 3.875% notes, issued April 2018 and due in April 2025 500 500 4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 650 650 3.000% notes, issued in October 2016 and due in January 2027 600 600 3.650% notes, issued in December 2017 and due in January 2028 550 550 3.250% notes, issued in June 2019 and due in June 2029 500 — 2.730% notes, issued in May 2019 and due in May 2034 (1) 418 — 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 250 250 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 550 550 Total principal amount 6,318 5,400 Unamortized net original issuance premiums and deferred financing costs (30 ) (23 ) $ 6,288 $ 5,377 (1) Represents the principal balance (in U.S. dollars) of the Sterling-denominated private placement of £315.0 million Sterling based on the applicable exchange rate on December 31, 2019 . |
Schedule of maturity of debt, net | The following table summarizes the maturity of our notes and bonds payable as of December 31, 2019 , excluding unamortized net original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2021 $ 250 2022 950 2023 750 2024 350 Thereafter 4,018 Totals $ 6,318 |
Schedule of notes and bonds issued during the year | During the three year period ended December 31, 2019 we issued the following notes and bonds (in millions): 2019 Issuances Date of Issuance Maturity date Principal amount issued Price of par value Effective yield to maturity 2.730% notes May 2019 May 2034 £315 100.00 % 2.73% 3.250% notes June 2019 June 2029 $500 99.36 % 3.33% 2018 Issuances 3.875% notes April 2018 April 2025 $500 99.50 % 3.96% 2017 Issuances 4.125% notes March 2017 October 2026 (1) $400 102.98 % 3.75% 4.650% notes March 2017 March 2047 $300 99.97 % 4.65% 3.250% notes December 2017 October 2022 (2) $500 101.77 % 2.84% 3.650% notes December 2017 January 2028 $550 99.78 % 3.68% 4.650% notes December 2017 March 2047 (3) $250 105.43 % 4.32% (1) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2026 issued in September 2014. (2) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2022 issued in October 2012. (3) This issuance constituted a further issuance of, and formed a single series with the senior notes due 2047 issued in March 2017. |
Issuances of Common Stock (Tabl
Issuances of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of common stock issuances pursuant to DRSPP program | The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions): Year Ended December 31, 2019 2018 2017 Shares of common stock issued under the DRSPP program 117,522 166,268 1,193,653 Gross proceeds $ 8.4 $ 9.1 $ 69.9 |
Schedule of common stock issuances pursuant to ATM program | The following table outlines common stock issuances pursuant to our ATM program (dollars in millions): Year Ended December 31, 2019 2018 2017 Shares of common stock issued under the ATM program 17,051,456 19,138,610 10,914,088 Gross proceeds $ 1,274.5 $ 1,125.4 $ 621.7 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of the change in the carrying value of all noncontrolling interests | The following table represents the change in the carrying value of all noncontrolling interests through December 31, 2019 (dollars in thousands): Tau Operating Partnership units (1) Realty Income, L.P. units (2) Other Noncontrolling Interests Total Carrying value at December 31, 2017 $ 13,322 $ 2,160 $ 3,725 $ 19,207 Reallocation of equity 572 (43 ) 245 774 Redemptions — (2,829 ) (2,752 ) (5,581 ) Shares issued in conjunction with acquisition — 18,848 — 18,848 Distributions (837 ) (842 ) (317 ) (1,996 ) Allocation of net income 299 618 67 984 Carrying value at December 31, 2018 $ 13,356 $ 17,912 $ 968 $ 32,236 Reallocation of equity — 653 — 653 Redemptions (13,356 ) — (901 ) (14,257 ) Additions to noncontrolling interest — 6,286 5,084 11,370 Distributions — (1,219 ) (77 ) (1,296 ) Allocation of net income — 964 32 996 Carrying value at December 31, 2019 $ — $ 24,596 $ 5,106 $ 29,702 (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013. No units remained outstanding as of December 31, 2019 , and 317,022 remained outstanding as of December 31, 2018 . (2) 242,007 Realty Income L.P. units were issued on March 30, 2018, 131,790 units were issued on April 30, 2018 and 89,322 units were issued on March 28, 2019. 463,119 and 373,797 units remained outstanding as of December 31, 2019 and 2018, respectively. |
Summary of selected financial data of consolidated VIEs | Below is a summary of selected financial data of consolidated VIEs, including the joint venture acquired during 2019, for which we are the primary beneficiary, included in the consolidated balance sheets at December 31, 2019 and December 31, 2018 (in thousands): December 31, 2019 December 31, 2018 Net real estate $ 654,305 $ 2,903,093 Total assets 744,394 3,259,495 Total debt — 191,565 Total liabilities 89,975 320,800 |
Distributions Paid and Payable
Distributions Paid and Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Dividends [Abstract] | |
Summary of monthly distributions paid per common share | The following is a summary of monthly distributions paid per common share for 2019 , 2018 and 2017 : Month 2019 2018 2017 January $ 0.2210 $ 0.2125 $ 0.2025 February 0.2255 0.2190 0.2105 March 0.2255 0.2190 0.2105 April 0.2260 0.2195 0.2110 May 0.2260 0.2195 0.2110 June 0.2260 0.2195 0.2110 July 0.2265 0.2200 0.2115 August 0.2265 0.2200 0.2115 September 0.2265 0.2200 0.2115 October 0.2270 0.2205 0.2120 November 0.2270 0.2205 0.2120 December 0.2270 0.2205 0.2120 Total $ 2.7105 $ 2.6305 $ 2.5270 |
Schedule of federal income tax characterization of distributions paid or deemed to be paid | The following presents the federal income tax characterization of distributions paid or deemed to be paid per common share for the years: 2019 2018 2017 Ordinary income $ 2.1206964 $ 2.0269173 $ 1.9402085 Nontaxable distributions 0.5898036 0.6035827 0.5478464 Total capital gain distribution — — 0.0389451 Totals $ 2.7105000 $ 2.6305000 $ 2.5270000 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Operating [Abstract] | |
Schedule of minimum future annual rents to be received on operating leases | At December 31, 2019 , minimum future annual rents to be received on the operating leases for the next five years and thereafter are as follows (dollars in thousands): 2020 $ 1,541,732 2021 1,503,125 2022 1,435,784 2023 1,350,877 2024 1,233,083 Thereafter 8,055,610 Total $ 15,120,211 |
Gain on Sales of Real Estate (T
Gain on Sales of Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of properties sold | The following table summarizes our properties sold during the periods indicated below (dollars in millions): Year Ended December 31, 2019 2018 2017 Number of properties 93 128 59 Net sales proceeds $ 108.9 $ 142.3 $ 167.0 Gain on sales of real estate $ 30.0 $ 24.6 $ 40.9 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value by balance sheet groupings | We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loans and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): At December 31, 2019 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 408.4 $ 417.7 Notes and bonds payable (2) 6,317.6 6,826.1 At December 31, 2018 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 298.4 $ 305.7 Notes and bonds payable (2) 5,400.0 5,430.0 ( 1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $3.0 million at December 31, 2019 , and $4.4 million at December 31, 2018 . Also excludes deferred financing costs of $1.3 million at December 31, 2019 , and $183,000 at December 31, 2018 . (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was $6.3 million at December 31, 2019 , and $10.5 million at December 31, 2018 . Also excludes deferred financing costs of $35.9 million at December 31, 2019 and $33.7 million at December 31, 2018 . |
Schedule of derivative financial instruments | The following table summarizes the terms and fair values of our derivative financial instruments at December 31, 2019 and December 31, 2018 (dollars in millions): Derivative Type Hedge Designation Notional Amount Strike Effective Date Maturity Date Fair Value - asset (liability) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Interest rate swap Cash flow $ 7.0 $ 7.2 6.03% 09/25/2012 09/03/2021 $ (0.2 ) $ (0.2 ) Interest rate swap Cash flow 250.0 250.0 1.72% 06/30/2015 06/30/2020 (0.1 ) 3.0 Interest rate swap Cash flow 250.0 250.0 3.04% 10/24/2018 03/24/2024 (14.7 ) (6.8 ) Cross-currency swap (1) Cash flow 41.6 — (2) 05/20/2019 05/22/2034 (2.6 ) — Cross-currency swap (1) Cash flow 41.6 — (3) 05/20/2019 05/22/2034 (2.6 ) — Cross-currency swap (1) Cash flow 41.6 — (4) 05/20/2019 05/22/2034 (2.9 ) — Cross-currency swap (1) Cash flow 41.6 — (5) 05/20/2019 05/22/2034 (3.2 ) — $ 673.4 $ 507.2 $ (26.3 ) $ (4.0 ) (1) Represents British Pound Sterling, or GBP, United States Dollar, or USD, cross-currency swap. (2) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.800% . (3) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.803% . (4) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.745% . (5) GBP fixed rates initially at 4.82% and escalating to 10.96% , and USD fixed rate at 9.755% . |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows ) the following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of the cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows (dollars in thousands): December 31, 2019 December 31, 2018 Cash and cash equivalents shown in the consolidated balance sheets $ 54,011 $ 10,387 Impounds related to mortgages payable (1) 12,465 9,555 Restricted escrow deposits (1) 4,529 1,129 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 71,005 $ 21,071 (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash that we are legally entitled to, but that is not immediately available to us. As a result, these amounts were considered restricted as of the dates presented. |
Common Stock Incentive Plan (Ta
Common Stock Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of severance-related expense | The total value of cash, stock compensation and professional fees incurred as a result of this severance was $28.3 million ; however, the net amount, after incorporating accruals for CEO compensation previous to this severance, was $18.7 million , which was recognized in general and administrative expense on our 2018 consolidated statement of income and comprehensive income, and which represents the incremental costs incurred per the reconciliation below (dollars in thousands): Cash $ 9,817 Stock compensation 17,902 Professional fees 574 Total value of severance 28,293 Amount accrued for CEO compensation prior to separation (9,642 ) Incremental severance $ 18,651 |
Schedule of nonvested restricted stock activity | The following table summarizes our common stock grant activity under our 2012 Plan. 2019 2018 2017 Number of shares Weighted average price (1) Number of shares Weighted average price (1) Number of shares Weighted average price (1) Outstanding nonvested shares, beginning of year 307,821 $ 53.44 475,768 $ 52.32 513,523 $ 48.33 Shares granted 87,327 $ 69.83 183,952 $ 52.21 149,264 $ 59.21 Shares vested (126,363 ) $ 54.45 (310,706 ) $ 51.05 (183,381 ) $ 46.65 Shares forfeited (9,087 ) $ 55.71 (41,193 ) $ 53.06 (3,638 ) $ 56.57 Outstanding nonvested shares, end of each period 259,698 $ 58.39 307,821 $ 53.44 475,768 $ 52.32 (1) Grant date fair value. |
Schedule of number of performance shares that vest based on the achievement of performance goals | The number of performance shares that vest for each of the three years is based on the achievement of the following performance goals: Performance Awards Metrics Weighting Total shareholder return (“TSR”) relative to MSCI US REIT Index 45 % TSR relative to JP Morgan Net Lease Peers 26 % Dividend per share growth rate 16 % Debt-to-EBITDA ratio 13 % |
Schedule of nonvested performance shares activity | The following table summarizes our performance share grant activity: 2019 2018 2017 Number of performance shares Weighted average price (1) Number of performance shares Weighted average price (1) Number of performance shares Weighted average price (1) Outstanding nonvested shares, beginning of year 223,392 $ 58.78 245,309 $ 62.49 159,751 $ 49.95 Shares granted 128,581 $ 65.34 269,868 $ 51.98 124,681 $ 71.79 Shares vested (47,310 ) $ 54.27 (291,785 ) $ 54.88 (39,123 ) $ 41.60 Shares forfeited — $ — — $ — — $ — Outstanding nonvested shares, end of each period 304,663 $ 62.25 223,392 $ 58.78 245,309 $ 62.49 (1) Grant date fair value. |
Schedule of nonvested restricted stock units activity | During 2019 , 2018 and 2017 we also granted restricted stock units that primarily vest over a four -year service period and have the same economic rights as shares of restricted stock: 2019 2018 2017 Number of restricted stock units Weighted average price (1) Number of restricted stock units Weighted average price (1) Number of restricted stock units Weighted average price (1) Outstanding nonvested shares, beginning of year 14,968 $ 54.62 24,869 $ 55.97 18,460 $ 52.65 Shares granted 5,482 $ 69.58 8,383 $ 49.96 10,467 $ 60.56 Shares vested (4,939 ) $ 54.90 (10,118 ) $ 55.01 (4,058 ) $ 52.70 Shares forfeited — $ — (8,166 ) $ 53.45 — $ — Outstanding nonvested shares, end of each period 15,511 $ 59.82 14,968 $ 54.62 24,869 $ 55.97 (1) Grant date fair value. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of assets from segment to consolidated | The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants (dollars in thousands): Assets, as of December 31: 2019 2018 Segment net real estate: Automotive service $ 288,453 $ 210,668 Automotive tire services 232,709 238,939 Beverages 279,373 284,910 Child care 208,326 151,640 Convenience stores 2,057,157 1,756,732 Dollar stores 1,427,950 1,117,250 Drug stores 1,618,854 1,490,261 Financial services 389,634 414,613 General merchandise 475,418 317,424 Grocery stores - U.S. (1) 922,349 774,526 Grocery stores - U.K. (1) 663,210 — Health and fitness 1,019,796 882,515 Home improvement 495,305 424,494 Restaurants-casual dining 576,526 559,616 Restaurants-quick service 1,059,155 964,980 Theaters - U.S. 878,103 555,990 Transportation services 769,614 758,133 Wholesale club 396,690 412,203 Other non-reportable segments 2,738,150 2,528,623 Total segment net real estate 16,496,772 13,843,517 Intangible assets: Automotive service 58,854 61,951 Automotive tire services 7,322 8,696 Beverages 1,509 1,765 Child care 21,997 12,277 Convenience stores 131,808 108,714 Dollar stores 82,701 48,842 Drug stores 183,319 165,558 Financial services 17,130 20,426 General merchandise 66,135 43,122 Grocery stores - U.S. (1) 180,197 144,551 Grocery stores - U.K. (1) 153,407 — Health and fitness 74,428 71,609 Home improvement 72,979 57,928 Restaurants-casual dining 23,289 18,153 Restaurants-quick service 52,353 54,448 Theaters - U.S. 36,089 25,811 Transportation services 66,055 73,577 Wholesale club 23,372 26,484 Other non-reportable segments 240,439 255,685 Other corporate assets 564,641 217,369 Total assets $ 18,554,796 $ 15,260,483 |
Schedule of reconciliation of revenue from segments to consolidated | Revenue for the years ended December 31, 2019 2018 2017 Segment rental revenue: Automotive service $ 32,365 $ 28,303 $ 25,291 Automotive tire services 31,292 30,078 29,560 Beverages 31,807 31,488 31,174 Child care 31,749 21,865 20,775 Convenience stores 166,755 142,194 111,023 Dollar stores 102,695 94,782 91,076 Drug stores 127,853 129,565 126,555 Financial services 30,189 29,429 28,744 General merchandise 35,366 29,249 23,752 Grocery stores - U.S. (1) 69,691 63,594 50,731 Grocery stores - U.K. (1) 17,819 — — Health and fitness 105,896 94,638 88,146 Home improvement 42,351 37,939 30,324 Restaurants-casual dining 45,238 46,171 43,876 Restaurants-quick service 92,018 72,465 59,638 Theaters - U.S. 87,698 70,560 58,443 Transportation services 66,500 63,565 62,337 Wholesale club 38,117 37,571 37,646 Other non-reportable segments and tenant reimbursements 329,419 298,090 293,215 Rental (including reimbursable) 1,484,818 1,321,546 1,212,306 Other 6,773 6,292 3,462 Total revenue $ 1,491,591 $ 1,327,838 $ 1,215,768 (1) During 2019, we acquired 17 grocery stores and one theater located in the U.K. Our investments in industries outside of the U.S. are managed as separate operating segments. The U.K. theater is included in other non-reportable segments. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future rental payments under operating leases | At December 31, 2019 , minimum future rental payments for the next five years and thereafter are as follows (dollars in millions): Ground Leases Paid by Realty Income (1) Ground Leases Paid by Our Tenants (2) Total 2020 $ 1.6 $ 13.5 $ 15.1 2021 1.4 13.3 14.7 2022 1.4 13.2 14.6 2023 1.3 13.2 14.5 2024 1.3 13.3 14.6 Thereafter 18.9 68.9 87.8 Total $ 25.9 $ 135.4 $ 161.3 Present value adjustment for remaining lease payments (3) (39.0 ) Lease liability - operating leases, net $ 122.3 (1) Realty Income currently pays the ground lessors directly for the rent under the ground leases. (2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible. (3 ) The range of discount rates used to calculate the present value of the lease payments is 2.42% to 5.50% . At December 31, 2019 , the weighted average discount rate is 4.29% and the weighted average remaining lease term is 12.3 years . The discount rates are derived using a hypothetical corporate credit curve for the ground leases based on our outstanding senior notes and relevant market data. The discount rates are specific for individual leases primarily based on the lease term. |
Schedule of minimum future rental payments under operating leases at prior year end | At December 31, 2018 , minimum future rental payments for the next five years and thereafter were as follows (dollars in millions): Ground Leases Paid by Realty Income (1) Ground Leases Paid by Our Tenants (2) Total 2019 $ 1.5 $ 13.5 $ 15.0 2020 1.4 13.5 14.9 2021 1.2 13.2 14.4 2022 1.2 13.1 14.3 2023 1.2 13.1 14.3 Thereafter 19.8 82.0 101.8 Total $ 26.3 $ 148.4 $ 174.7 (1) Realty Income currently pays the ground lessors directly for the rent under the ground leases. (2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible. |
Consolidated Quarterly Financ_2
Consolidated Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly consolidated financial data | CONSOLIDATED QUARTERLY FINANCIAL DATA (dollars in thousands, except per share data) (unaudited) (not covered by Report of Independent Registered Public Accounting Firm) First Quarter Second Quarter Third Quarter Fourth Quarter Year 2019 Total revenue $ 354,365 $ 365,450 $ 374,247 $ 397,529 $ 1,491,591 Depreciation and amortization expense 137,517 150,426 149,424 156,594 593,961 Interest expense 70,020 72,488 73,410 75,073 290,991 Other expenses 42,861 54,143 52,139 52,269 201,412 Net income 111,230 95,420 101,275 129,553 437,478 Net income available to common stockholders 110,942 95,194 101,049 129,297 436,482 Net income per common share Basic and diluted 0.37 0.31 0.32 0.39 1.38 Dividends paid per common share 0.6720 0.6780 0.6795 0.6810 2.7105 2018 Total revenue $ 318,295 $ 328,886 $ 338,081 $ 342,576 $ 1,327,838 Depreciation and amortization expense 131,103 133,999 136,967 137,711 539,780 Interest expense 59,415 66,628 69,342 70,635 266,020 Other expenses 47,680 39,349 40,302 54,752 182,083 Net income 83,315 96,697 99,283 85,303 364,598 Net income available to common stockholders 83,163 96,380 98,999 85,072 363,614 Net income per common share Basic and diluted 0.29 0.34 0.34 0.29 1.26 Dividends paid per common share 0.6505 0.6585 0.6600 0.6615 2.6305 |
Organization and Operation (Det
Organization and Operation (Details) ft² in Millions | Dec. 31, 2019ft²stateproperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties owned | property | 6,483 |
Number of U.S. states where properties are owned (states) | state | 49 |
Leasable square feet (sq ft) | ft² | 106.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards - Net Income Per Common Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |||
Weighted average shares used for the basic net income per share computation (in shares) | 315,837,012 | 289,427,430 | 273,465,680 |
Incremental shares from share-based compensation (in shares) | 322,265 | 179,532 | 154,050 |
Weighted average partnership common units convertible to common shares that were dilutive (in shares) | 0 | 317,022 | 317,022 |
Weighted average shares used for diluted net income per share computation (in shares) | 316,159,277 | 289,923,984 | 273,936,752 |
Unvested shares from share-based compensation | |||
Net income per common share | |||
Anti-dilutive shares excluded from computation (in shares) | 8,113 | 13,148 | 32,205 |
Partnership common units convertible to common shares | |||
Net income per common share | |||
Anti-dilutive shares excluded from computation (in shares) | 442,073 | 297,576 | 88,182 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards - Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | Minimum | |
Depreciation and Amortization | |
Estimated useful life (in years) | 25 years |
Buildings | Maximum | |
Depreciation and Amortization | |
Estimated useful life (in years) | 35 years |
Building improvements | Minimum | |
Depreciation and Amortization | |
Estimated useful life (in years) | 4 years |
Building improvements | Maximum | |
Depreciation and Amortization | |
Estimated useful life (in years) | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards - Provision For Impairment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | |
Provisions for Impairment | |||
Number of properties | 6,483 | ||
Provisions for impairment | $ | $ 40,186 | $ 26,269 | $ 14,751 |
Number of impaired properties held for sale | 9 | 1 | 0 |
Number of impaired properties held for investment | 5 | 3 | 2 |
Number of impaired properties sold | 37 | 40 | 24 |
Held for sale | |||
Provisions for Impairment | |||
Number of properties | 23 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies and Procedures and Newly Adopted Accounting Standards - Derivative and Hedging Activities (Details) £ in Millions | Dec. 31, 2019USD ($)derivative | May 31, 2019GBP (£)derivative | May 31, 2019USD ($)derivative | Oct. 31, 2018derivative |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of interest rate swaps | 3 | 3 | ||
Number of interest rate swaps for each term loan | 1 | |||
Term Loans | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Face amount of loan | $ | $ 250,000,000 | |||
Cross-currency swaps | Cash flow hedge | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Number of derivative instruments | 4 | 4 | ||
Swap exchange notional amount | £ 130 | $ 166,000,000 |
Supplemental Detail for Certa_3
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Lease Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease intangible assets, net | ||
Total acquired lease intangible assets, net | $ 1,493,383 | $ 1,199,597 |
In-place leases | ||
Lease intangible assets, net | ||
Lease intangible assets, gross | 1,612,153 | 1,321,979 |
Accumulated amortization of lease intangible assets | (627,676) | (546,573) |
Above-market leases | ||
Lease intangible assets, net | ||
Lease intangible assets, gross | 710,275 | 583,109 |
Accumulated amortization of lease intangible assets | $ (201,369) | $ (158,918) |
Supplemental Detail for Certa_4
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other assets, net | |||
Right of use asset - operating leases, net | $ 132,000 | ||
Financing receivables | $ 81,892 | $ 0 | |
Right of use asset - financing leases | 36,901 | ||
Non-refundable escrow deposits | 14,803 | 200 | |
Goodwill | 14,430 | 14,630 | |
Impounds related to mortgages payable | 12,465 | 9,555 | |
Prepaid expenses | 11,839 | 11,595 | |
Credit facility origination costs, net | 11,453 | 14,248 | |
Value-added tax receivable | 9,682 | 0 | |
Corporate assets, net | 5,251 | 5,681 | |
Restricted escrow deposits | 4,529 | 1,129 | |
Derivative assets and receivables - at fair value | 12 | 3,100 | |
Other items | 4,871 | 1,853 | |
Total other assets, net | 328,661 | $ 61,991 | |
Other assets, net | |||
Other assets, net | |||
Right of use asset - operating leases, net | $ 120,533 |
Supplemental Detail for Certa_5
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Distributions Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Distributions payable | ||
Distributions payable | $ 76,728 | $ 67,789 |
Noncontrolling interests | ||
Distributions payable | ||
Distributions payable | 106 | 153 |
Common stock | ||
Distributions payable | ||
Distributions payable | $ 76,622 | $ 67,636 |
Supplemental Detail for Certa_6
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts payable and accrued expenses | ||
Derivative liabilities and payables - at fair value | $ 26,359 | $ 7,001 |
Property taxes payable | 18,626 | 14,511 |
Value-added tax payable | 13,434 | 0 |
Accrued costs on properties under development | 5,870 | 8,137 |
Other items | 35,907 | 29,426 |
Total accounts payable and accrued expenses | 177,039 | 133,765 |
Notes payable | ||
Accounts payable and accrued expenses | ||
Interest payable | 75,114 | 73,094 |
Mortgages, term loans, credit line | ||
Accounts payable and accrued expenses | ||
Interest payable | $ 1,729 | $ 1,596 |
Supplemental Detail for Certa_7
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Lease Intangible Liabilities, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Lease intangible liabilities, net | ||
Below-market leases | $ 447,522 | $ 404,938 |
Accumulated amortization of below-market leases | (114,419) | (94,072) |
Total lease intangible liabilities, net | $ 333,103 | $ 310,866 |
Supplemental Detail for Certa_8
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other liabilities | |||
Rent received in advance and other deferred revenue | $ 127,687 | $ 115,380 | |
Lease liability - operating leases, net | 122,285 | $ 132,000 | |
Security deposits | 6,303 | 6,093 | |
Lease liability - financing leases | 5,946 | ||
Capital lease obligations | 5,636 | ||
Total other liabilities | $ 262,221 | $ 127,109 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Acquisitions (Details) £ in Millions, ft² in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019GBP (£)ft²stateproperty | Dec. 31, 2019USD ($)ft²stateproperty | Dec. 31, 2018USD ($)ft²stateproperty | |
Real Estate [Line Items] | |||
Number of properties | property | 789 | 789 | 764 |
Square feet (sq ft) | ft² | 13.7 | 13.7 | 5.2 |
Investment | $ | $ 3,715.2 | $ 1,797.5 | |
Weighted average lease term (years) | 13 years 6 months | 13 years 6 months | 14 years 9 months 18 days |
Initial average cash lease yield (percent) | 6.40% | 6.40% | 6.40% |
New properties | |||
Real Estate [Line Items] | |||
Number of properties, new | property | 771 | 771 | |
Square feet (sq ft) | ft² | 13.2 | 13.2 | |
Investment | $ | $ 3,658.6 | ||
Weighted average lease term (years) | 13 years 4 months 24 days | 13 years 4 months 24 days | |
Initial average cash lease yield (percent) | 6.40% | 6.40% | |
New properties | U.S. | |||
Real Estate [Line Items] | |||
Number of properties, new | property | 753 | 753 | 750 |
Number of states | state | 45 | 45 | 39 |
Square feet (sq ft) | ft² | 11.6 | 11.6 | 4.1 |
Investment | $ | $ 2,860.8 | $ 1,717.2 | |
Weighted average lease term (years) | 13 years | 13 years | 14 years 10 months 24 days |
Initial average cash lease yield (percent) | 6.80% | 6.80% | 6.30% |
New properties | U.K. | |||
Real Estate [Line Items] | |||
Number of properties, new | property | 18 | 18 | |
Square feet (sq ft) | ft² | 1.6 | 1.6 | |
Investment | £ 625.8 | $ 797.8 | |
Weighted average lease term (years) | 15 years 7 months 6 days | 15 years 7 months 6 days | |
Initial average cash lease yield (percent) | 5.20% | 5.20% | |
Properties under development | U.S. | |||
Real Estate [Line Items] | |||
Number of properties, under development | property | 18 | 18 | 14 |
Square feet (sq ft) | ft² | 0.5 | 0.5 | 1.1 |
Investment | $ | $ 56.6 | $ 80.3 | |
Weighted average lease term (years) | 15 years 1 month 6 days | 15 years 1 month 6 days | 12 years 3 months 18 days |
Initial average cash lease yield (percent) | 7.30% | 7.30% | 6.90% |
Investments in Real Estate - Ac
Investments in Real Estate - Acquisitions Narrative (Details) £ in Millions | 12 Months Ended | |||
Dec. 31, 2019GBP (£)property_investmentindustry | Dec. 31, 2019USD ($)property_investmentindustry | Dec. 31, 2018USD ($)property_investmentindustry | Jan. 01, 2019USD ($) | |
Investments in real estate properties | ||||
Number of investments that caused any tenant to be 10% or more of total assets | property_investment | 0 | 0 | 0 | |
Rental revenue generated from acquisitions from investment grade tenants (percent) | 36.00% | 36.00% | 59.00% | |
Value of properties acquired during the period | $ 3,715,200,000 | $ 1,797,500,000 | ||
Right-of-use assets | $ 132,000,000 | |||
Industrial | ||||
Investments in real estate properties | ||||
Property type acquired based on rental revenue (percent) | 3.70% | |||
Land | ||||
Investments in real estate properties | ||||
Right-of-use assets | $ 28,900,000 | |||
New and under development | ||||
Investments in real estate properties | ||||
Leased area (as a percent) | 100.00% | 100.00% | ||
New properties | ||||
Investments in real estate properties | ||||
Number of industries in which tenants operate | industry | 31 | 31 | 21 | |
Value of properties acquired during the period | $ 3,658,600,000 | |||
New properties | Retail | ||||
Investments in real estate properties | ||||
Property type acquired based on rental revenue (percent) | 94.60% | 94.60% | 96.30% | |
New properties | Industrial | ||||
Investments in real estate properties | ||||
Property type acquired based on rental revenue (percent) | 5.40% | 5.40% | ||
Real Estate Investment | ||||
Investments in real estate properties | ||||
Value of properties acquired during the period | $ 3,700,000,000 | $ 1,800,000,000 | ||
Property investments allocated to land | 1,100,000,000 | 651,500,000 | ||
Property investments allocated to buildings and improvements | 2,100,000,000 | 1,000,000,000 | ||
Property investments allocated to lease-related intangible assets | 448,300,000 | 141,000,000 | ||
Property investments allocated to financing receivables | 82,600,000 | |||
Property investments allocated to lease-related intangible liabilities | 46,800,000 | 39,200,000 | ||
Property investments allocated to prepaid rent related to certain below-market leases | 8,400,000 | |||
Contingent consideration associated with acquisitions | 0 | 0 | ||
Revenue generated from acquired properties during the period | 36,900,000 | 30,900,000 | ||
Net income generated from acquired properties during the period | 92,000,000 | $ 57,300,000 | ||
U.K. | New properties | ||||
Investments in real estate properties | ||||
Value of properties acquired during the period | £ 625.8 | $ 797,800,000 |
Investments in Real Estate - In
Investments in Real Estate - Investments in Existing Properties (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in real estate properties | ||
Improvements | $ 65,373,623 | |
Investments in Existing Properties | ||
Investments in real estate properties | ||
Improvements | 17,900,000 | $ 17,900,000 |
Re-leasing costs | 2,100,000 | 3,900,000 |
Recurring capital expenditures | 801,000 | 1,100,000 |
Nonrecurring building improvements | $ 15,000,000 | $ 12,900,000 |
Investments in Real Estate - Pr
Investments in Real Estate - Properties with Existing Leases (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Investments in real estate properties | |||
Value of properties acquired during the period | $ 3,715.2 | $ 1,797.5 | |
Number of properties acquired during the period | property | 789 | 764 | |
Rental Revenue | |||
Investments in real estate properties | |||
Amortization of above and below market Leases | $ 21.7 | $ 16.9 | $ 14 |
In-Place Leases | |||
Investments in real estate properties | |||
Depreciation and amortization expense | 112 | 106.6 | $ 104.8 |
Real Estate Investment | |||
Investments in real estate properties | |||
Value of properties acquired during the period | 3,700 | 1,800 | |
Real Estate Investment | Properties with existing leases | In-Place Leases | |||
Investments in real estate properties | |||
Value of properties acquired during the period | $ 2,720 | $ 425.5 | |
Number of properties acquired during the period | property | 575 | 205 |
Investments in Real Estate - Es
Investments in Real Estate - Estimated Impact of Amortization of Lease Intangibles (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Net decrease to rental revenue | |
2020 | $ (22,911) |
2021 | (21,756) |
2022 | (20,201) |
2023 | (18,685) |
2024 | (17,145) |
Thereafter | (75,105) |
Totals | (175,803) |
Increase to amortization expense | |
2020 | 122,982 |
2021 | 115,235 |
2022 | 103,268 |
2023 | 90,965 |
2024 | 82,394 |
Thereafter | 469,633 |
Totals | $ 984,477 |
Credit Facility (Details)
Credit Facility (Details) £ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2018USD ($) | Dec. 31, 2019USD ($)currency | Dec. 31, 2018USD ($) | Dec. 31, 2019GBP (£)extension | Dec. 31, 2019USD ($)extension | |
Credit facility | |||||
Credit facility origination costs | $ 14,248,000 | $ 11,453,000 | |||
Outstanding balance | 252,000,000 | 704,335,000 | |||
Unsecured debt | Revolving Credit Facility | |||||
Credit facility | |||||
Maximum borrowing capacity | $ 3,000,000,000 | ||||
Number of extensions | extension | 2 | 2 | |||
Term of extension option | 6 months | ||||
Number of currencies allowable per facility | currency | 14 | ||||
Accordion expansion option | $ 1,000,000,000 | ||||
Outstanding balance | $ 252,000,000 | £ 169.2 | $ 704,300,000 | ||
Current borrowing capacity | $ 2,300,000,000 | ||||
Weighted average borrowing rate during the period (as a percent) | 3.10% | 2.90% | |||
Weighted average interest rate at the end of the period (as a percent) | 3.20% | 2.20% | 2.20% | ||
Unsecured debt | Revolving Credit Facility | Other assets, net | |||||
Credit facility | |||||
Credit facility origination costs | $ 14,200,000 | $ 11,500,000 | |||
Unsecured debt | Revolving Credit Facility | LIBOR | |||||
Credit facility | |||||
Basis spread on variable rate (as a percent) | 0.775% | ||||
Commitment fee (as a percent) | 0.125% | ||||
All-in drawn variable interest rate (as a percent) | 0.90% | ||||
Term Loans | |||||
Credit facility | |||||
Face amount of loan | 250,000,000 | ||||
Term Loans | $250 million senior unsecured term loan due Mar 2024 | |||||
Credit facility | |||||
Face amount of loan | $ 250,000,000 | $ 250,000,000 | |||
Basis spread on variable rate (as a percent) | 0.85% |
Term Loans (Details)
Term Loans (Details) - Term Loans | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2018USD ($) | Jun. 30, 2015USD ($) | Jan. 31, 2013USD ($) | Dec. 31, 2018USD ($)extension | Dec. 31, 2019USD ($) | |
Debt | |||||
Face amount of loan | $ 250,000,000 | ||||
Deferred finance costs balance | $ 1,400,000 | 956,000 | |||
$250 million senior unsecured term loan due Mar 2024 | |||||
Debt | |||||
Face amount of loan | $ 250,000,000 | $ 250,000,000 | |||
Basis spread on variable rate (as a percent) | 0.85% | ||||
Effective yield (as a percent) | 3.89% | ||||
Deferred financing costs incurred | $ 1,100,000 | ||||
$250 million senior unsecured term loan due Jun 2020 | |||||
Debt | |||||
Face amount of loan | $ 250,000,000 | ||||
Basis spread on variable rate (as a percent) | 0.90% | ||||
Effective yield (as a percent) | 2.62% | ||||
Deferred financing costs incurred | $ 1,200,000 | ||||
$70 million senior unsecured term loan due Jan 2018 | |||||
Debt | |||||
Face amount of loan | $ 70,000,000 | ||||
Basis spread on variable rate (as a percent) | 1.10% | 0.90% | |||
Effective yield (as a percent) | 2.05% | ||||
Number of optional extension periods | extension | 2 | ||||
Loan extension period | 6 months |
Mortgages Payable - Narrative (
Mortgages Payable - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)mortgageproperty | Dec. 31, 2018USD ($)mortgage | Dec. 31, 2017USD ($) | |
Debt | |||
Principal payments on mortgages payable | $ 20,723 | $ 21,905 | $ 139,725 |
Number of mortgages assumed | mortgage | 2 | 0 | |
Mortgage loans assumed | $ 130,800 | ||
Number of properties related to mortgages assumed | property | 33 | ||
Mortgages Payable | |||
Debt | |||
Principal payments on mortgages payable | $ 20,700 | $ 21,900 | |
Deferred financing costs | 1,300 | 183 | |
Unamortized premium balance | 3,000 | ||
Mortgages Payable | Mortgages repaid in full | |||
Debt | |||
Principal payments on mortgages payable | $ 15,800 | $ 17,000 | |
Number of mortgages repaid | mortgage | 1 | 2 |
Mortgages Payable - Summary of
Mortgages Payable - Summary of Mortgages Payable (Details) - Mortgages Payable $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)mortgageproperty | Dec. 31, 2018USD ($)mortgageproperty | |
Debt | ||
Number of properties | property | 92 | 60 |
Weighted Average Stated Interest Rate (as a percent) | 4.90% | 5.10% |
Weighted Average Effective Interest Rate (as a percent) | 4.60% | 4.60% |
Weighted Average Remaining Years Until Maturity | 3 years 1 month 6 days | 3 years 2 months 12 days |
Remaining Principal Balance | $ 408,419 | $ 298,377 |
Unamortized Premium and Deferred Finance Costs Balance, net | 1,700 | 4,192 |
Net payable amount | $ 410,119 | $ 302,569 |
Number of mortgages | mortgage | 27 | 26 |
Minimum | ||
Debt | ||
Weighted Average Effective Interest Rate (as a percent) | 3.80% | 1.10% |
Stated interest rate (as a percent) | 3.80% | 3.80% |
Maximum | ||
Debt | ||
Weighted Average Effective Interest Rate (as a percent) | 7.60% | 7.70% |
Stated interest rate (as a percent) | 6.90% | 6.90% |
Variable rate mortgages | ||
Debt | ||
Number of properties | property | 1 | 2 |
Remaining Principal Balance | $ 7,100 | $ 23,300 |
Number of mortgages | mortgage | 1 | 2 |
Variable rate mortgages after interest rate arrangements | ||
Debt | ||
Remaining Principal Balance | $ 16,000 |
Mortgages Payable - Maturities
Mortgages Payable - Maturities (Details) - Mortgages Payable - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturity of mortgages payable, excluding net premiums | ||
2020 | $ 84,200 | |
2021 | 68,800 | |
2022 | 111,800 | |
2023 | 20,600 | |
2024 | 112,200 | |
Thereafter | 10,800 | |
Totals | $ 408,419 | $ 298,377 |
Notes Payable - General (Detail
Notes Payable - General (Details) - Notes Payable | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2014USD ($) | Oct. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Mar. 31, 2005USD ($) |
Debt | |||||||||
Total principal amount | $ 6,318,000,000 | $ 5,400,000,000 | |||||||
Unamortized net original issuance premiums and deferred financing costs | (30,000,000) | (23,000,000) | |||||||
Net payable amount | 6,288,000,000 | 5,377,000,000 | |||||||
5.750% notes, issued in June 2010 and due in January 2021 | |||||||||
Debt | |||||||||
Total principal amount | $ 250,000,000 | $ 250,000,000 | |||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% | ||||||
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 | |||||||||
Debt | |||||||||
Total principal amount | $ 950,000,000 | $ 950,000,000 | |||||||
Stated interest rate (as a percent) | 3.25% | 3.25% | 3.25% | ||||||
3.250% notes, issued in October 2012 and due in October 2022 | |||||||||
Debt | |||||||||
Principal amount issued | $ 450,000,000 | ||||||||
3.250% notes, issued in December 2017 and due in October 2022 | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.25% | ||||||||
Principal amount issued | $ 500,000,000 | ||||||||
4.650% notes, issued in July 2013 and due in August 2023 | |||||||||
Debt | |||||||||
Total principal amount | $ 750,000,000 | $ 750,000,000 | |||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | 4.65% | ||||||
3.875% notes, issued in June 2014 and due in July 2024 | |||||||||
Debt | |||||||||
Total principal amount | $ 350,000,000 | $ 350,000,000 | |||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | 3.875% | ||||||
3.875% notes, issued in April 2018 and due in April 2025 | |||||||||
Debt | |||||||||
Total principal amount | $ 500,000,000 | $ 500,000,000 | |||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | 3.875% | ||||||
Principal amount issued | $ 500,000,000 | ||||||||
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 | |||||||||
Debt | |||||||||
Total principal amount | $ 650,000,000 | $ 650,000,000 | |||||||
Stated interest rate (as a percent) | 4.125% | 4.125% | 4.125% | ||||||
4.125% notes, issued in September 2014 and due in October 2026 | |||||||||
Debt | |||||||||
Principal amount issued | $ 250,000,000 | ||||||||
4.125% notes, issued in March 2017 and due in October 2026 | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.125% | ||||||||
Principal amount issued | $ 400,000,000 | $ 400,000,000 | |||||||
3.000% notes, issued in October 2016 and due in January 2027 | |||||||||
Debt | |||||||||
Total principal amount | $ 600,000,000 | $ 600,000,000 | |||||||
Stated interest rate (as a percent) | 3.00% | 3.00% | 3.00% | ||||||
3.650% notes, issued in December 2017 and due in January 2028 | |||||||||
Debt | |||||||||
Total principal amount | $ 550,000,000 | $ 550,000,000 | |||||||
Stated interest rate (as a percent) | 3.65% | 3.65% | 3.65% | ||||||
3.250% notes, issued in June 2019 and due in June 2029 | |||||||||
Debt | |||||||||
Total principal amount | $ 500,000,000 | $ 0 | |||||||
Stated interest rate (as a percent) | 3.25% | 3.25% | |||||||
Principal amount issued | $ 500,000,000 | ||||||||
2.730% notes, issued in May 2019 and due in May 2034 | |||||||||
Debt | |||||||||
Total principal amount | £ 315,000,000 | $ 418,000,000 | 0 | ||||||
Stated interest rate (as a percent) | 2.73% | 2.73% | |||||||
Principal amount issued | £ | £ 315,000,000 | ||||||||
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 | |||||||||
Debt | |||||||||
Total principal amount | $ 250,000,000 | $ 250,000,000 | |||||||
Stated interest rate (as a percent) | 5.875% | 5.875% | 5.875% | ||||||
5.875% bonds, issued in March 2005 and due in March 2035 | |||||||||
Debt | |||||||||
Principal amount issued | $ 100,000,000 | ||||||||
5.875% bonds, issued in June 2011 and due in March 2035 | |||||||||
Debt | |||||||||
Principal amount issued | $ 150,000,000 | ||||||||
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 | |||||||||
Debt | |||||||||
Total principal amount | $ 550,000,000 | $ 550,000,000 | |||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | 4.65% | ||||||
4.650% notes, issued in March 2017 and due in March 2047 | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.65% | ||||||||
Principal amount issued | $ 300,000,000 | $ 300,000,000 | |||||||
4.650% notes, issued in December 2017 and due in March 2047 | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.65% | ||||||||
Principal amount issued | $ 250,000,000 |
Notes Payable - Maturities (Det
Notes Payable - Maturities (Details) - Notes Payable - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Maturity of notes and bonds payable | ||
2021 | $ 250 | |
2022 | 950 | |
2023 | 750 | |
2024 | 350 | |
Thereafter | 4,018 | |
Totals | $ 6,318 | $ 5,400 |
Notes Payable - General Narrati
Notes Payable - General Narrative (Details) - Notes Payable - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt | |||
Weighted average interest rate (as a percent) | 3.90% | ||
Weighted average remaining years until maturity | 8 years 3 months 18 days | ||
Interest incurred on notes and bonds | $ 233.5 | $ 213.8 | $ 197.1 |
Maximum | |||
Debt | |||
Debt to total adjusted assets ratio (as a percent) | 60.00% | ||
Secured debt to total adjusted assets ratio (as a percent) | 40.00% | ||
Minimum | |||
Debt | |||
Debt service coverage ratio | 1.5 | ||
Total unencumbered assets as a percentage of outstanding unsecured debt | 150.00% |
Notes Payable - Note Issuances
Notes Payable - Note Issuances (Details) - Notes Payable | Dec. 31, 2019GBP (£) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) |
2.730% notes, issued in May 2019 and due in May 2034 | |||||
Debt | |||||
Stated interest rate (as a percent) | 2.73% | 2.73% | |||
Principal amount issued | £ | £ 315,000,000 | ||||
Price of par value (as a percent) | 100.00% | 100.00% | |||
Effective yield (as a percent) | 2.73% | 2.73% | |||
3.250% notes, issued in June 2019 and due in June 2029 | |||||
Debt | |||||
Stated interest rate (as a percent) | 3.25% | 3.25% | |||
Principal amount issued | $ 500,000,000 | ||||
Price of par value (as a percent) | 99.36% | 99.36% | |||
Effective yield (as a percent) | 3.33% | 3.33% | |||
3.875% notes, issued in April 2018 and due in April 2025 | |||||
Debt | |||||
Stated interest rate (as a percent) | 3.875% | 3.875% | 3.875% | ||
Principal amount issued | $ 500,000,000 | ||||
Price of par value (as a percent) | 99.50% | ||||
Effective yield (as a percent) | 3.96% | ||||
4.125% notes, issued in March 2017 and due in October 2026 | |||||
Debt | |||||
Stated interest rate (as a percent) | 4.125% | ||||
Principal amount issued | $ 400,000,000 | $ 400,000,000 | |||
Price of par value (as a percent) | 102.98% | ||||
Effective yield (as a percent) | 3.75% | ||||
4.650% notes, issued in March 2017 and due in March 2047 | |||||
Debt | |||||
Stated interest rate (as a percent) | 4.65% | ||||
Principal amount issued | $ 300,000,000 | $ 300,000,000 | |||
Price of par value (as a percent) | 99.97% | ||||
Effective yield (as a percent) | 4.65% | ||||
3.250% notes, issued in December 2017 and due in October 2022 | |||||
Debt | |||||
Stated interest rate (as a percent) | 3.25% | ||||
Principal amount issued | $ 500,000,000 | ||||
Price of par value (as a percent) | 101.77% | ||||
Effective yield (as a percent) | 2.84% | ||||
3.650% notes, issued in December 2017 and due in January 2028 | |||||
Debt | |||||
Stated interest rate (as a percent) | 3.65% | ||||
Principal amount issued | $ 550,000,000 | ||||
Price of par value (as a percent) | 99.78% | ||||
Effective yield (as a percent) | 3.68% | ||||
4.650% notes, issued in December 2017 and due in March 2047 | |||||
Debt | |||||
Stated interest rate (as a percent) | 4.65% | ||||
Principal amount issued | $ 250,000,000 | ||||
Price of par value (as a percent) | 105.43% | ||||
Effective yield (as a percent) | 4.32% |
Notes Payable - Note Issuance_2
Notes Payable - Note Issuances Narrative (Details) - Notes Payable £ in Millions, $ in Millions | 1 Months Ended | |||||
Jun. 30, 2019USD ($) | May 31, 2019GBP (£) | May 31, 2019USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
2.730% notes, issued in May 2019 and due in May 2034 | ||||||
Debt | ||||||
Proceeds from issuance of debt | £ 315 | $ 398.1 | ||||
3.250% notes, issued in June 2019 and due in June 2029 | ||||||
Debt | ||||||
Proceeds from issuance of debt | $ 492.2 | |||||
3.875% notes, issued in April 2018 and due in April 2025 | ||||||
Debt | ||||||
Proceeds from issuance of debt | $ 493.1 | |||||
Notes issued in December 2017 | ||||||
Debt | ||||||
Proceeds from issuance of debt | $ 1,300 | |||||
6.750% notes, issued in September 2007 and due in August 2019 | ||||||
Debt | ||||||
Early repayment of notes payable | $ 550 | |||||
Notes issued in March 2017 | ||||||
Debt | ||||||
Proceeds from issuance of debt | $ 705.2 |
Notes Payable - Note Repayment
Notes Payable - Note Repayment (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt | ||||||
Principal payments on notes payable | $ 0 | $ 350,000 | $ 725,000 | |||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (42,426) | |||
Notes Payable | 2.000% notes, issued in October 2012 and due in January 2018 | ||||||
Debt | ||||||
Principal payments on notes payable | $ 350,000 | |||||
Stated interest rate (as a percent) | 2.00% | |||||
Notes Payable | 6.750% notes, issued in September 2007 and due in August 2019 | ||||||
Debt | ||||||
Early repayment of notes payable | $ 550,000 | |||||
Stated interest rate (as a percent) | 6.75% | 6.75% | ||||
Loss on extinguishment of debt | $ (42,400) | |||||
Dilution in earnings per common share due to loss on extinguishment of debt | $ (0.15) | |||||
Notes Payable | 5.375% notes, issued in September 2005 and due in September 2017 | ||||||
Debt | ||||||
Principal payments on notes payable | $ 175,000 | |||||
Stated interest rate (as a percent) | 5.375% |
Issuances of Common Stock - Iss
Issuances of Common Stock - Issuance of Common Stock in an Overnight Offering (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May 31, 2019 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Issuance of Common Stock | |||||
Proceeds from shares issuances, net | $ 845,061 | $ 0 | $ 704,938 | ||
Overnight Offering | Common stock | |||||
Issuance of Common Stock | |||||
Shares of common stock issued (in shares) | 12,650,000 | 11,850,000 | 0 | ||
Underwriting discounts and other offering costs | $ 31,000 | $ 29,800 | |||
Proceeds from shares issuances, net | $ 845,100 | $ 704,900 |
Issuances of Common Stock - Div
Issuances of Common Stock - Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividend Reinvestment and Stock Purchase Plan | |||
Gross proceeds | $ 8,437 | $ 9,114 | $ 69,931 |
DRSPP | |||
Dividend Reinvestment and Stock Purchase Plan | |||
Common shares for future issuance (in shares) | 26,000,000 | ||
Shares remaining for future issuance (in shares) | 11,652,668 | ||
Common stock | DRSPP | |||
Dividend Reinvestment and Stock Purchase Plan | |||
Shares of common stock issued (in shares) | 117,522 | 166,268 | 1,193,653 |
Gross proceeds | $ 8,400 | $ 9,100 | $ 69,900 |
Common stock | DRSPP, component related to waiver approval process | |||
Dividend Reinvestment and Stock Purchase Plan | |||
Shares of common stock issued (in shares) | 927,695 | ||
Gross proceeds | $ 54,700 |
Issuances of Common Stock - At-
Issuances of Common Stock - At-the-Market (ATM) Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
At-the-Market (ATM) Programs | |||
Gross proceeds | $ 1,264,518 | $ 1,125,364 | $ 621,697 |
ATM Program | |||
At-the-Market (ATM) Programs | |||
Common shares for future issuance (in shares) | 33,402,405 | ||
Common stock | ATM Program | |||
At-the-Market (ATM) Programs | |||
Shares of common stock issued (in shares) | 17,051,456 | 19,138,610 | 10,914,088 |
Gross proceeds | $ 1,274,500 | $ 1,125,400 | $ 621,700 |
Redemption of Preferred Stock (
Redemption of Preferred Stock (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||||
Excess of redemption value over carrying value of preferred shares redeemed | $ 0 | $ 0 | $ 13,373 | |
Class F Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, dividend rate (as a percent) | 6.625% | |||
Excess of redemption value over carrying value of preferred shares redeemed | $ 13,400 |
Noncontrolling Interests - Narr
Noncontrolling Interests - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019property | Jul. 31, 2019USD ($) | Jan. 31, 2019USD ($)shares | Dec. 31, 2018entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016propertyentity | |
Noncontrolling interests | ||||||||
Conversion ratio | 1 | |||||||
Number of properties acquired | property | 9 | 2 | ||||||
Number of joint ventures controlling interest acquired | entity | 2 | |||||||
Number of entities in which all outstanding minority interests were acquired | entity | 1 | |||||||
Redemption of partnership units | $ 21,123 | $ 2,752 | $ 0 | |||||
Term Loans | $70 million senior unsecured term loan | ||||||||
Noncontrolling interests | ||||||||
Repayments of long-term debt | $ 70,000 | |||||||
Tau Operating Partnership | ||||||||
Noncontrolling interests | ||||||||
Number of partnership units redeemed (in units) | shares | 317,022 | |||||||
Third-party partnership ownership interest (as a percent) | 0.11% | |||||||
Ownership interest (as a percent) | 100.00% | |||||||
Redemption of partnership units | $ 20,200 | |||||||
Excess of redemption of units over carrying value as reduction to common stock and paid in capital | $ 6,900 | |||||||
Realty Income, L.P. | ||||||||
Noncontrolling interests | ||||||||
Third-party partnership ownership interest (as a percent) | 1.90% | 1.90% | ||||||
Ownership interest (as a percent) | 98.10% | 98.10% | ||||||
Joint Venture | ||||||||
Noncontrolling interests | ||||||||
Ownership interest (as a percent) | 89.90% | 89.90% | ||||||
Other Noncontrolling Interest One | ||||||||
Noncontrolling interests | ||||||||
Redemption of partnership units | $ 900 |
Noncontrolling Interests - Chan
Noncontrolling Interests - Change in Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 28, 2019 | Apr. 30, 2018 | Mar. 30, 2018 | Jan. 22, 2013 | |
Change in the carrying value of all noncontrolling interests | |||||||
Carrying value at beginning of the period | $ 32,236 | ||||||
Reallocation of equity | 0 | $ 0 | $ 0 | ||||
Redemptions | (21,123) | (2,752) | |||||
Additions to noncontrolling interest | 11,370 | 18,848 | |||||
Allocation of net income | 996 | 984 | 520 | ||||
Carrying value at end of the period | $ 29,702 | $ 32,236 | |||||
Tau Operating Partnership | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Number of partnership units issued (in units) | 317,022 | ||||||
Number of partnership units outstanding (in units) | 0 | 317,022 | |||||
Realty Income, L.P. | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Number of partnership units issued (in units) | 89,322 | 373,797 | 89,322 | 131,790 | 242,007 | ||
Number of partnership units outstanding (in units) | 463,119 | 373,797 | |||||
Noncontrolling interests | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Carrying value at beginning of the period | $ 32,236 | $ 19,207 | |||||
Reallocation of equity | 653 | 774 | 485 | ||||
Redemptions | (14,257) | (5,581) | |||||
Additions to noncontrolling interest | 11,370 | 18,848 | |||||
Distributions | (1,296) | (1,996) | |||||
Allocation of net income | 996 | 984 | |||||
Carrying value at end of the period | 29,702 | 32,236 | 19,207 | ||||
Noncontrolling interests | Tau Operating Partnership | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Carrying value at beginning of the period | 13,356 | 13,322 | |||||
Reallocation of equity | 0 | 572 | |||||
Redemptions | (13,356) | 0 | |||||
Additions to noncontrolling interest | 0 | 0 | |||||
Distributions | 0 | (837) | |||||
Allocation of net income | 0 | 299 | |||||
Carrying value at end of the period | 0 | 13,356 | 13,322 | ||||
Noncontrolling interests | Realty Income, L.P. | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Carrying value at beginning of the period | 17,912 | 2,160 | |||||
Reallocation of equity | 653 | (43) | |||||
Redemptions | 0 | (2,829) | |||||
Additions to noncontrolling interest | 6,286 | 18,848 | |||||
Distributions | (1,219) | (842) | |||||
Allocation of net income | 964 | 618 | |||||
Carrying value at end of the period | 24,596 | 17,912 | 2,160 | ||||
Noncontrolling interests | Other Noncontrolling Interests | |||||||
Change in the carrying value of all noncontrolling interests | |||||||
Carrying value at beginning of the period | 968 | 3,725 | |||||
Reallocation of equity | 0 | 245 | |||||
Redemptions | (901) | (2,752) | |||||
Additions to noncontrolling interest | 5,084 | 0 | |||||
Distributions | (77) | (317) | |||||
Allocation of net income | 32 | 67 | |||||
Carrying value at end of the period | $ 5,106 | $ 968 | $ 3,725 |
Noncontrolling Interests - Vari
Noncontrolling Interests - Variable Interest Entities (Details) - Primary beneficiary - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable interest entity | ||
Net real estate | $ 654,305 | $ 2,903,093 |
Total assets | 744,394 | 3,259,495 |
Total debt | 0 | 191,565 |
Total liabilities | $ 89,975 | $ 320,800 |
Distributions Paid and Payabl_2
Distributions Paid and Payable - Distributions to Common Stockholders (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions paid per common share (in dollars per share) | $ 0.2270 | $ 0.2270 | $ 0.2270 | $ 0.2265 | $ 0.2265 | $ 0.2265 | $ 0.2260 | $ 0.2260 | $ 0.2260 | $ 0.2255 | $ 0.2255 | $ 0.2210 | $ 0.2205 | $ 0.2205 | $ 0.2205 | $ 0.2200 | $ 0.2200 | $ 0.2200 | $ 0.2195 | $ 0.2195 | $ 0.2195 | $ 0.2190 | $ 0.2190 | $ 0.2125 | $ 0.2120 | $ 0.2120 | $ 0.2120 | $ 0.2115 | $ 0.2115 | $ 0.2115 | $ 0.2110 | $ 0.2110 | $ 0.2110 | $ 0.2105 | $ 0.2105 | $ 0.2025 | $ 0.6810 | $ 0.6795 | $ 0.6780 | $ 0.6720 | $ 0.6615 | $ 0.6600 | $ 0.6585 | $ 0.6505 | $ 2.7105 | $ 2.6305 | $ 2.5270 |
Distributions payable (in dollars per share) | $ 0.2275 | $ 0.2210 | $ 0.2275 | $ 0.2210 | $ 0.2275 | $ 0.2210 |
Distributions Paid and Payabl_3
Distributions Paid and Payable - Tax Characterization of Distributions Paid (Details) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Totals (in dollars per share) | $ 0.2270 | $ 0.2270 | $ 0.2270 | $ 0.2265 | $ 0.2265 | $ 0.2265 | $ 0.2260 | $ 0.2260 | $ 0.2260 | $ 0.2255 | $ 0.2255 | $ 0.2210 | $ 0.2205 | $ 0.2205 | $ 0.2205 | $ 0.2200 | $ 0.2200 | $ 0.2200 | $ 0.2195 | $ 0.2195 | $ 0.2195 | $ 0.2190 | $ 0.2190 | $ 0.2125 | $ 0.2120 | $ 0.2120 | $ 0.2120 | $ 0.2115 | $ 0.2115 | $ 0.2115 | $ 0.2110 | $ 0.2110 | $ 0.2110 | $ 0.2105 | $ 0.2105 | $ 0.2025 | $ 0.6810 | $ 0.6795 | $ 0.6780 | $ 0.6720 | $ 0.6615 | $ 0.6600 | $ 0.6585 | $ 0.6505 | $ 2.7105 | $ 2.6305 | $ 2.5270 |
Common stock | |||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Distributions characterized as ordinary income (in dollars per share) | 2.1206964 | 2.0269173 | 1.9402085 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions characterized as nontaxable distributions (in dollars per share) | 0.5898036 | 0.6035827 | 0.5478464 | ||||||||||||||||||||||||||||||||||||||||||||
Total capital gain distribution (in dollars per share) | 0 | 0 | 0.0389451 | ||||||||||||||||||||||||||||||||||||||||||||
Totals (in dollars per share) | $ 2.7105000 | $ 2.6305000 | $ 2.5270000 |
Distributions Paid and Payabl_4
Distributions Paid and Payable - Class F Preferred Stock (Details) - Class F Preferred Stock $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Apr. 30, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)dividend$ / shares | Dec. 31, 2017$ / shares | |
Distributions Paid and Payable | |||
Preferred stock redeemed | shares | 16,350,000 | ||
Number of monthly distributions paid | dividend | 3 | ||
Dividends paid per preferred share (in dollars per share) | $ 0.101215 | $ 0.414063 | |
Preferred stock dividends paid | $ | $ 1.7 | $ 3.9 | |
Distributions characterized as ordinary income (in dollars per share) | $ 0.5073368 | ||
Total capital gain distribution (in dollars per share) | $ 0.0079412 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)stateproperty | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessor, Lease, Description [Line Items] | |||
Number of properties owned | 6,483 | ||
Number of U.S. states where properties are owned (states) | state | 49 | ||
Percentage rent received | $ | $ 8 | $ 5.9 | $ 6.1 |
Single-tenant properties | |||
Lessor, Lease, Description [Line Items] | |||
Number of properties owned | 6,452 | ||
Single-tenant properties as percentage of total properties (as a percent) | 99.50% | ||
Properties available for lease or sale | |||
Lessor, Lease, Description [Line Items] | |||
Number of properties owned | 94 |
Operating Leases - Minimum Futu
Operating Leases - Minimum Future Annual Rents to be Received (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Minimum Future Annual Rents to be Received | |
2020 | $ 1,541,732 |
2021 | 1,503,125 |
2022 | 1,435,784 |
2023 | 1,350,877 |
2024 | 1,233,083 |
Thereafter | 8,055,610 |
Total | $ 15,120,211 |
Gain on Sales of Real Estate (D
Gain on Sales of Real Estate (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | |
Properties Sold During the Period | |||
Number of properties | property | 93 | 128 | 59 |
Net sales proceeds | $ 108,900 | $ 142,300 | $ 167,000 |
Gain on sales of real estate | $ 29,996 | $ 24,643 | $ 40,898 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying value | ||
Fair value of financial assets and liabilities | ||
Mortgages payable assumed in connection with acquisitions | $ 408,400 | $ 298,400 |
Notes and bonds payable | 6,317,600 | 5,400,000 |
Estimated fair value | ||
Fair value of financial assets and liabilities | ||
Mortgages payable assumed in connection with acquisitions | 417,700 | 305,700 |
Notes and bonds payable | 6,826,100 | 5,430,000 |
Mortgages Payable | ||
Fair value of financial assets and liabilities | ||
Unamortized balance of non-cash net premiums | 3,000 | 4,400 |
Remaining balance of deferred financing costs at period end | 1,300 | 183 |
Notes and bonds payable | ||
Fair value of financial assets and liabilities | ||
Unamortized balance of non-cash net premiums | 6,300 | 10,500 |
Remaining balance of deferred financing costs at period end | $ 35,900 | $ 33,700 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Derivative Financial Instruments (Details) - Designated as hedging instrument - Cash flow hedge - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional Amount | $ 673.4 | $ 507.2 |
Fair Value - asset (liability) | (26.3) | (4) |
Interest rate swap, maturity Sep 2021 | ||
Derivative [Line Items] | ||
Notional Amount | $ 7 | 7.2 |
Strike (percent) | 6.03% | |
Fair Value - asset (liability) | $ (0.2) | (0.2) |
Interest rate swap, maturity Jun 2020 | ||
Derivative [Line Items] | ||
Notional Amount | $ 250 | 250 |
Strike (percent) | 1.72% | |
Fair Value - asset (liability) | $ (0.1) | 3 |
Interest rate swap, maturity Mar 2024 | ||
Derivative [Line Items] | ||
Notional Amount | $ 250 | 250 |
Strike (percent) | 3.04% | |
Fair Value - asset (liability) | $ (14.7) | (6.8) |
Cross-currency swap, maturity May 2034 1 | ||
Derivative [Line Items] | ||
Notional Amount | 41.6 | 0 |
Fair Value - asset (liability) | $ (2.6) | 0 |
Cross-currency swap, maturity May 2034 1 | GBP | Minimum | ||
Derivative [Line Items] | ||
Strike (percent) | 4.82% | |
Cross-currency swap, maturity May 2034 1 | GBP | Maximum | ||
Derivative [Line Items] | ||
Strike (percent) | 10.96% | |
Cross-currency swap, maturity May 2034 1 | USD | ||
Derivative [Line Items] | ||
Strike (percent) | 9.80% | |
Cross-currency swap, maturity May 2034 2 | ||
Derivative [Line Items] | ||
Notional Amount | $ 41.6 | 0 |
Fair Value - asset (liability) | $ (2.6) | 0 |
Cross-currency swap, maturity May 2034 2 | GBP | Minimum | ||
Derivative [Line Items] | ||
Strike (percent) | 4.82% | |
Cross-currency swap, maturity May 2034 2 | GBP | Maximum | ||
Derivative [Line Items] | ||
Strike (percent) | 10.96% | |
Cross-currency swap, maturity May 2034 2 | USD | ||
Derivative [Line Items] | ||
Strike (percent) | 9.803% | |
Cross-currency swap, maturity May 2034 3 | ||
Derivative [Line Items] | ||
Notional Amount | $ 41.6 | 0 |
Fair Value - asset (liability) | $ (2.9) | 0 |
Cross-currency swap, maturity May 2034 3 | GBP | Minimum | ||
Derivative [Line Items] | ||
Strike (percent) | 4.82% | |
Cross-currency swap, maturity May 2034 3 | GBP | Maximum | ||
Derivative [Line Items] | ||
Strike (percent) | 10.96% | |
Cross-currency swap, maturity May 2034 3 | USD | ||
Derivative [Line Items] | ||
Strike (percent) | 9.745% | |
Cross-currency swap, maturity May 2034 4 | ||
Derivative [Line Items] | ||
Notional Amount | $ 41.6 | 0 |
Fair Value - asset (liability) | $ (3.2) | $ 0 |
Cross-currency swap, maturity May 2034 4 | GBP | Minimum | ||
Derivative [Line Items] | ||
Strike (percent) | 4.82% | |
Cross-currency swap, maturity May 2034 4 | GBP | Maximum | ||
Derivative [Line Items] | ||
Strike (percent) | 10.96% | |
Cross-currency swap, maturity May 2034 4 | USD | ||
Derivative [Line Items] | ||
Strike (percent) | 9.755% |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Narrative (Details) £ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | May 31, 2019GBP (£)derivative | May 31, 2019USD ($)derivative | |
Interest rate swaps | Interest expense | |||
Derivative [Line Items] | |||
Unrealized losses reclassified from AOCI to income statement | $ 3.4 | ||
Amount to be reclassified within next twelve months | 5.1 | ||
Cross-currency swaps | Cash flow hedge | |||
Derivative [Line Items] | |||
Number of derivative instruments | derivative | 4 | 4 | |
Swap exchange notional amount | £ 130 | $ 166 | |
Cross-currency swaps | Foreign currency and gains | |||
Derivative [Line Items] | |||
Unrealized losses reclassified from AOCI to income statement | 5.5 | ||
Amount to be reclassified within next twelve months | $ 1.3 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 28, 2019 | Jan. 01, 2019 | Apr. 30, 2018 | Mar. 30, 2018 | |
Supplemental Disclosures of Cash Flow Information | |||||||||||||||
Cash paid for interest | $ 275,300 | $ 251,500 | $ 240,400 | ||||||||||||
Interest capitalized to properties under development | 751 | 369 | 461 | ||||||||||||
Cash paid for income taxes | 4,200 | 4,700 | 3,800 | ||||||||||||
Non-cash activities | |||||||||||||||
Lease liabilities | $ 122,285 | 122,285 | $ 132,000 | ||||||||||||
Right-of-use assets | $ 132,000 | ||||||||||||||
Additions to noncontrolling interest | 11,370 | 18,848 | |||||||||||||
Revenues | $ 397,529 | $ 374,247 | $ 365,450 | $ 354,365 | $ 342,576 | $ 338,081 | $ 328,886 | $ 318,295 | 1,491,591 | 1,327,838 | 1,215,768 | ||||
Mortgage loans assumed | $ 130,800 | ||||||||||||||
Acquisition of property using funds held in non-refundable escrow account | $ 7,500 | ||||||||||||||
Notes issued for acquisition of a portfolio of properties | $ 125,900 | ||||||||||||||
Realty Income, L.P. | |||||||||||||||
Non-cash activities | |||||||||||||||
Number of partnership units issued (in units) | 89,322 | 373,797 | 89,322 | 373,797 | 89,322 | 131,790 | 242,007 | ||||||||
Shares issued in conjunction with acquisitions | $ 6,300 | $ 18,800 | |||||||||||||
Noncontrolling interests | |||||||||||||||
Non-cash activities | |||||||||||||||
Additions to noncontrolling interest | 11,370 | 18,848 | |||||||||||||
Noncontrolling interests | Realty Income, L.P. | |||||||||||||||
Non-cash activities | |||||||||||||||
Additions to noncontrolling interest | 6,286 | 18,848 | |||||||||||||
Noncontrolling interests | Other Noncontrolling Interests | |||||||||||||||
Non-cash activities | |||||||||||||||
Additions to noncontrolling interest | $ 5,084 | $ 0 |
Supplemental Disclosures of C_4
Supplemental Disclosures of Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reconciliation of cash, cash equivalents, and restricted cash | ||||
Cash and cash equivalents shown in the consolidated balance sheets | $ 54,011 | $ 10,387 | ||
Impounds related to mortgages payable | 12,465 | 9,555 | ||
Restricted escrow deposits | 4,529 | 1,129 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 71,005 | $ 21,071 | $ 12,142 | $ 15,681 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Maximum percentage of compensation employee may contribute to 401(k) plan | 60.00% |
Employer matching contribution (as a percent) | 50.00% |
Employer's matching contribution as a percentage of employee's compensation, maximum | 6.00% |
Common Stock Incentive Plan - S
Common Stock Incentive Plan - Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
General and administrative expense | ||||
Common Stock Incentive Plan | ||||
Share-based compensation costs recognized | $ 13,700 | $ 27,300 | $ 13,900 | |
2012 Plan | ||||
Common Stock Incentive Plan | ||||
Plan term from the date of adoption | 10 years | |||
2012 Plan | Maximum | ||||
Common Stock Incentive Plan | ||||
Authorized shares | 3,985,734 | |||
CEO | ||||
Severance Related Expense | ||||
Cash | $ 9,817 | |||
Stock compensation | 17,902 | |||
Professional fees | 574 | |||
Total value of severance | 28,293 | |||
Amount accrued for CEO compensation prior to separation | (9,642) | |||
Incremental severance | $ 18,651 | |||
CEO | General and administrative expense | ||||
Common Stock Incentive Plan | ||||
Share-based compensation costs related to accelerated equity awards | $ 11,800 |
Common Stock Incentive Plan - R
Common Stock Incentive Plan - Restricted Stock (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock Incentive Plan | |||||
Remaining unamortized share-based compensation expense | $ 10.1 | ||||
Number of shares | |||||
Outstanding nonvested shares, beginning of year | 307,821 | 475,768 | 513,523 | ||
Shares granted | 87,327 | 183,952 | 149,264 | ||
Shares vested | (126,363) | (310,706) | (183,381) | ||
Shares forfeited | (9,087) | (41,193) | (3,638) | ||
Outstanding nonvested shares, end of each period | 259,698 | 307,821 | 475,768 | ||
Weighted average price | |||||
Outstanding nonvested shares, beginning of year (in dollars per share) | $ 53.44 | $ 52.32 | $ 48.33 | ||
Shares granted (in dollars per share) | 69.83 | 52.21 | 59.21 | ||
Shares vested (in dollars per share) | 54.45 | 51.05 | 46.65 | ||
Shares forfeited (in dollars per share) | 55.71 | 53.06 | 56.57 | ||
Outstanding nonvested shares, end of each period (in dollars per share) | $ 58.39 | $ 53.44 | $ 52.32 | ||
Directors | |||||
Number of shares | |||||
Shares granted | 4,000 | 32,000 | |||
Shares vested | (20,000) | ||||
Employees | |||||
Number of shares | |||||
Shares granted | 51,327 | ||||
Three-year vesting period | Directors | |||||
Common Stock Incentive Plan | |||||
Vesting rights percentage | 33.33% | ||||
Vesting period (in years) | 3 years | 3 years | 3 years | ||
Number of shares | |||||
Shares granted | 4,000 | ||||
Three-year vesting period | Directors | Maximum | |||||
Common Stock Incentive Plan | |||||
Service period as basis for restricted stock award vesting (in years) | 6 years | ||||
Two-year vesting period | Directors | |||||
Common Stock Incentive Plan | |||||
Service period as basis for restricted stock award vesting (in years) | 6 years | ||||
Vesting rights percentage | 50.00% | ||||
Vesting period (in years) | 2 years | ||||
Number of shares | |||||
Shares granted | 8,000 | ||||
One-year vesting period | Directors | |||||
Common Stock Incentive Plan | |||||
Service period as basis for restricted stock award vesting (in years) | 7 years | ||||
Vesting rights percentage | 100.00% | ||||
Vesting period (in years) | 1 year | 1 year | |||
Immediate vesting | Directors | Minimum | |||||
Common Stock Incentive Plan | |||||
Service period as basis for restricted stock award vesting (in years) | 8 years | ||||
Four year-vesting period | Employees | |||||
Common Stock Incentive Plan | |||||
Vesting period (in years) | 4 years |
Common Stock Incentive Plan - P
Common Stock Incentive Plan - Performance Shares (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock Incentive Plan | |||
Vesting rights percentage | 50.00% | ||
Performance period (in years) | 3 years | ||
Remaining unamortized share-based compensation expense | $ 8.7 | ||
Performance shares vesting based on achievement of performance goals | |||
Total shareholder return (TSR) relative to MSCI US REIT Index (as a percent) | 45.00% | 45.00% | 45.00% |
TSR relative to JP Morgan Net Lease Peers (as a percent) | 26.00% | 26.00% | 26.00% |
Dividend per share growth rate (as a percent) | 16.00% | 16.00% | 16.00% |
Debt-to-EBITDA ratio (as a percent) | 13.00% | 13.00% | 13.00% |
Number of shares | |||
Outstanding nonvested shares, beginning of year | 223,392 | 245,309 | 159,751 |
Shares granted | 128,581 | 269,868 | 124,681 |
Shares vested | (47,310) | (291,785) | (39,123) |
Shares forfeited | 0 | 0 | 0 |
Outstanding nonvested shares, end of each period | 304,663 | 223,392 | 245,309 |
Weighted average price | |||
Outstanding nonvested shares, beginning of year (in dollars per share) | $ 58.78 | $ 62.49 | $ 49.95 |
Shares granted (in dollars per share) | 65.34 | 51.98 | 71.79 |
Shares vested (in dollars per share) | 54.27 | 54.88 | 41.60 |
Shares forfeited (in dollars per share) | 0 | 0 | 0 |
Outstanding nonvested shares, end of each period (in dollars per share) | $ 62.25 | $ 58.78 | $ 62.49 |
Common Stock Incentive Plan -_2
Common Stock Incentive Plan - Restricted Stock Units (Details) - Restricted Stock Units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock Incentive Plan | |||
Vesting period (in years) | 4 years | 4 years | 4 years |
Remaining unamortized share-based compensation expense | $ 296 | ||
Number of shares | |||
Outstanding nonvested shares, beginning of year | 14,968 | 24,869 | 18,460 |
Shares granted | 5,482 | 8,383 | 10,467 |
Shares vested | (4,939) | (10,118) | (4,058) |
Shares forfeited | 0 | (8,166) | 0 |
Outstanding nonvested shares, end of each period | 15,511 | 14,968 | 24,869 |
Weighted average price | |||
Outstanding nonvested shares, beginning of year (in dollars per share) | $ 54.62 | $ 55.97 | $ 52.65 |
Shares granted (in dollars per share) | 69.58 | 49.96 | 60.56 |
Shares vested (in dollars per share) | 54.90 | 55.01 | 52.70 |
Shares forfeited (in dollars per share) | 0 | 53.45 | 0 |
Outstanding nonvested shares, end of each period (in dollars per share) | $ 59.82 | $ 54.62 | $ 55.97 |
Segment Information - Assets (D
Segment Information - Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Reconciliation of assets from segment to consolidated | ||
Number of activity segments | segment | 50 | |
Net real estate | $ 16,496,772 | $ 13,843,517 |
Other corporate assets | 564,641 | 217,369 |
Total assets | 18,554,796 | 15,260,483 |
Automotive service | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 288,453 | 210,668 |
Intangible assets | 58,854 | 61,951 |
Automotive tire services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 232,709 | 238,939 |
Intangible assets | 7,322 | 8,696 |
Beverages | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 279,373 | 284,910 |
Intangible assets | 1,509 | 1,765 |
Child care | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 208,326 | 151,640 |
Intangible assets | 21,997 | 12,277 |
Convenience Stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 2,057,157 | 1,756,732 |
Intangible assets | 131,808 | 108,714 |
Dollar stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,427,950 | 1,117,250 |
Intangible assets | 82,701 | 48,842 |
Drug stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,618,854 | 1,490,261 |
Intangible assets | 183,319 | 165,558 |
Financial services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 389,634 | 414,613 |
Intangible assets | 17,130 | 20,426 |
General merchandise | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 475,418 | 317,424 |
Intangible assets | 66,135 | 43,122 |
Grocery stores - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 922,349 | 774,526 |
Intangible assets | 180,197 | 144,551 |
Grocery stores - U.K. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 663,210 | 0 |
Intangible assets | 153,407 | 0 |
Health and fitness | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,019,796 | 882,515 |
Intangible assets | 74,428 | 71,609 |
Home improvement | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 495,305 | 424,494 |
Intangible assets | 72,979 | 57,928 |
Restaurants-casual dining | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 576,526 | 559,616 |
Intangible assets | 23,289 | 18,153 |
Restaurants-quick service | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,059,155 | 964,980 |
Intangible assets | 52,353 | 54,448 |
Theaters - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 878,103 | 555,990 |
Intangible assets | 36,089 | 25,811 |
Transportation services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 769,614 | 758,133 |
Intangible assets | 66,055 | 73,577 |
Wholesale club | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 396,690 | 412,203 |
Intangible assets | 23,372 | 26,484 |
Other non-reportable segments | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 2,738,150 | 2,528,623 |
Intangible assets | $ 240,439 | $ 255,685 |
Segment Information - Revenue (
Segment Information - Revenue (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment revenue information | |||||||||||
Rental (including reimbursable) | $ 1,484,818 | $ 1,321,546 | $ 1,212,306 | ||||||||
Other | 6,773 | 6,292 | 3,462 | ||||||||
Total revenue | $ 397,529 | $ 374,247 | $ 365,450 | $ 354,365 | $ 342,576 | $ 338,081 | $ 328,886 | $ 318,295 | 1,491,591 | 1,327,838 | 1,215,768 |
Automotive service | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 32,365 | 28,303 | 25,291 | ||||||||
Automotive tire services | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 31,292 | 30,078 | 29,560 | ||||||||
Beverages | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 31,807 | 31,488 | 31,174 | ||||||||
Child care | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 31,749 | 21,865 | 20,775 | ||||||||
Convenience Stores | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 166,755 | 142,194 | 111,023 | ||||||||
Dollar stores | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 102,695 | 94,782 | 91,076 | ||||||||
Drug stores | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 127,853 | 129,565 | 126,555 | ||||||||
Financial services | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 30,189 | 29,429 | 28,744 | ||||||||
General merchandise | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 35,366 | 29,249 | 23,752 | ||||||||
Grocery stores - U.S. | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 69,691 | 63,594 | 50,731 | ||||||||
Grocery stores - U.K. | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 17,819 | 0 | 0 | ||||||||
Health and fitness | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 105,896 | 94,638 | 88,146 | ||||||||
Home improvement | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 42,351 | 37,939 | 30,324 | ||||||||
Restaurants-casual dining | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 45,238 | 46,171 | 43,876 | ||||||||
Restaurants-quick service | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 92,018 | 72,465 | 59,638 | ||||||||
Theaters - U.S. | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 87,698 | 70,560 | 58,443 | ||||||||
Transportation services | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 66,500 | 63,565 | 62,337 | ||||||||
Wholesale club | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | 38,117 | 37,571 | 37,646 | ||||||||
Other non-reportable segments and tenant reimbursements | |||||||||||
Segment revenue information | |||||||||||
Rental (including reimbursable) | $ 329,419 | $ 298,090 | $ 293,215 | ||||||||
Other non-reportable segments and tenant reimbursements | U.K. | |||||||||||
Segment revenue information | |||||||||||
Number of properties acquired | property | 1 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2019USD ($) |
Re-leasing costs, recurring capital expenditures, non-recurring building improvements | |
Other Commitments [Line Items] | |
Other Commitment | $ 6.5 |
Construction contracts | |
Other Commitments [Line Items] | |
Other Commitment | $ 16 |
Commitments and Contingencies -
Commitments and Contingencies - Minimum Future Rental Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Minimum Future Rental Payments | |||
2020 | $ 15,100 | ||
2021 | 14,700 | ||
2022 | 14,600 | ||
2023 | 14,500 | ||
2024 | 14,600 | ||
Thereafter | 87,800 | ||
Total | 161,300 | ||
Present value adjustment for remaining lease payments | (39,000) | ||
Lease liability - operating leases, net | $ 122,285 | $ 132,000 | |
Weighted average discount rate (percent) | 4.29% | ||
Weighted average remaining lease term (in years) | 12 years 3 months 18 days | ||
Minimum Future Rental Payments at Prior Year End | |||
2019 | $ 15,000 | ||
2020 | 14,900 | ||
2021 | 14,400 | ||
2022 | 14,300 | ||
2023 | 14,300 | ||
Thereafter | 101,800 | ||
Total | 174,700 | ||
Minimum | |||
Minimum Future Rental Payments | |||
Discount rate used to present value lease payments (percent) | 2.42% | ||
Maximum | |||
Minimum Future Rental Payments | |||
Discount rate used to present value lease payments (percent) | 5.50% | ||
Ground Leases Paid by Realty Income | |||
Minimum Future Rental Payments | |||
2020 | $ 1,600 | ||
2021 | 1,400 | ||
2022 | 1,400 | ||
2023 | 1,300 | ||
2024 | 1,300 | ||
Thereafter | 18,900 | ||
Total | 25,900 | ||
Minimum Future Rental Payments at Prior Year End | |||
2019 | 1,500 | ||
2020 | 1,400 | ||
2021 | 1,200 | ||
2022 | 1,200 | ||
2023 | 1,200 | ||
Thereafter | 19,800 | ||
Total | 26,300 | ||
Ground Leases Paid by Our Tenants | |||
Minimum Future Rental Payments | |||
2020 | 13,500 | ||
2021 | 13,300 | ||
2022 | 13,200 | ||
2023 | 13,200 | ||
2024 | 13,300 | ||
Thereafter | 68,900 | ||
Total | $ 135,400 | ||
Minimum Future Rental Payments at Prior Year End | |||
2019 | 13,500 | ||
2020 | 13,500 | ||
2021 | 13,200 | ||
2022 | 13,100 | ||
2023 | 13,100 | ||
Thereafter | 82,000 | ||
Total | $ 148,400 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |||
Feb. 24, 2020 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
5.750% notes, issued in June 2010 and due in January 2021 | Notes payable | ||||
Subsequent events | ||||
Stated interest rate (as a percent) | 5.75% | 5.75% | ||
Subsequent event | ||||
Subsequent events | ||||
Common stock, dividends declared (in dollars per share) | $ 0.2325 | $ 0.2325 | ||
Subsequent event | 5.750% notes, issued in June 2010 and due in January 2021 | Notes payable | ||||
Subsequent events | ||||
Early repayment of notes payable | $ 250 | |||
Stated interest rate (as a percent) | 5.75% |
Consolidated Quarterly Financ_3
Consolidated Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2019 | Nov. 30, 2019 | Oct. 31, 2019 | Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Aug. 31, 2017 | Jul. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ 397,529 | $ 374,247 | $ 365,450 | $ 354,365 | $ 342,576 | $ 338,081 | $ 328,886 | $ 318,295 | $ 1,491,591 | $ 1,327,838 | $ 1,215,768 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 156,594 | 149,424 | 150,426 | 137,517 | 137,711 | 136,967 | 133,999 | 131,103 | 593,961 | 539,780 | 498,788 | ||||||||||||||||||||||||||||||||||||
Interest expense | 75,073 | 73,410 | 72,488 | 70,020 | 70,635 | 69,342 | 66,628 | 59,415 | 290,991 | 266,020 | 247,413 | ||||||||||||||||||||||||||||||||||||
Other expenses | 52,269 | 52,139 | 54,143 | 42,861 | 54,752 | 40,302 | 39,349 | 47,680 | 201,412 | 182,083 | |||||||||||||||||||||||||||||||||||||
Net income | 129,553 | 101,275 | 95,420 | 111,230 | 85,303 | 99,283 | 96,697 | 83,315 | 437,478 | 364,598 | 319,318 | ||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ 129,297 | $ 101,049 | $ 95,194 | $ 110,942 | $ 85,072 | $ 98,999 | $ 96,380 | $ 83,163 | $ 436,482 | $ 363,614 | $ 301,514 | ||||||||||||||||||||||||||||||||||||
Net income per common share, basic and diluted (in dollars per share) | $ 0.39 | $ 0.32 | $ 0.31 | $ 0.37 | $ 0.29 | $ 0.34 | $ 0.34 | $ 0.29 | $ 1.38 | $ 1.26 | $ 1.10 | ||||||||||||||||||||||||||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.2270 | $ 0.2270 | $ 0.2270 | $ 0.2265 | $ 0.2265 | $ 0.2265 | $ 0.2260 | $ 0.2260 | $ 0.2260 | $ 0.2255 | $ 0.2255 | $ 0.2210 | $ 0.2205 | $ 0.2205 | $ 0.2205 | $ 0.2200 | $ 0.2200 | $ 0.2200 | $ 0.2195 | $ 0.2195 | $ 0.2195 | $ 0.2190 | $ 0.2190 | $ 0.2125 | $ 0.2120 | $ 0.2120 | $ 0.2120 | $ 0.2115 | $ 0.2115 | $ 0.2115 | $ 0.2110 | $ 0.2110 | $ 0.2110 | $ 0.2105 | $ 0.2105 | $ 0.2025 | $ 0.6810 | $ 0.6795 | $ 0.6780 | $ 0.6720 | $ 0.6615 | $ 0.6600 | $ 0.6585 | $ 0.6505 | $ 2.7105 | $ 2.6305 | $ 2.5270 |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
SEC Schedule III | ||||
Number of Properties | property | 6,484 | |||
Encumbrances | $ 408,419,373 | |||
Initial Cost to Company | ||||
Land | 5,704,816,590 | |||
Buildings, Improvements and Acquisition Fees | 13,857,381,432 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 65,373,623 | |||
Carrying Costs | 10,055,207 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 5,704,816,590 | |||
Buildings, Improvements and Acquisition Fees | 13,932,810,262 | |||
Total | 19,637,626,852 | $ 16,566,601,986 | $ 15,027,043,415 | $ 13,904,519,436 |
Accumulated Depreciation | $ 3,140,854,604 | $ 2,723,085,290 | $ 2,350,544,126 | $ 2,000,728,517 |
U.S. | Aerospace | ||||
SEC Schedule III | ||||
Number of Properties | property | 5 | |||
Encumbrances | $ 14,409,617 | |||
Initial Cost to Company | ||||
Land | 6,890,774 | |||
Buildings, Improvements and Acquisition Fees | 110,783,380 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 216,638 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 6,890,774 | |||
Buildings, Improvements and Acquisition Fees | 111,000,018 | |||
Total | 117,890,792 | |||
Accumulated Depreciation | $ 28,630,112 | |||
U.S. | Aerospace | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Aerospace | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Apparel stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 30 | |||
Encumbrances | $ 13,925,000 | |||
Initial Cost to Company | ||||
Land | 58,918,135 | |||
Buildings, Improvements and Acquisition Fees | 141,491,607 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,983,429 | |||
Carrying Costs | 218,760 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 58,918,135 | |||
Buildings, Improvements and Acquisition Fees | 145,693,796 | |||
Total | 204,611,931 | |||
Accumulated Depreciation | $ 47,856,451 | |||
U.S. | Apparel stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 4 years | |||
U.S. | Apparel stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Automotive collision services | ||||
SEC Schedule III | ||||
Number of Properties | property | 75 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 52,729,547 | |||
Buildings, Improvements and Acquisition Fees | 119,655,706 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,799,680 | |||
Carrying Costs | 10,000 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 52,729,547 | |||
Buildings, Improvements and Acquisition Fees | 121,465,386 | |||
Total | 174,194,933 | |||
Accumulated Depreciation | $ 28,390,510 | |||
U.S. | Automotive collision services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 19 years | |||
U.S. | Automotive collision services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Automotive parts | ||||
SEC Schedule III | ||||
Number of Properties | property | 249 | |||
Encumbrances | $ 6,637,578 | |||
Initial Cost to Company | ||||
Land | 96,978,473 | |||
Buildings, Improvements and Acquisition Fees | 248,888,548 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 4,622,175 | |||
Carrying Costs | 826,885 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 96,978,473 | |||
Buildings, Improvements and Acquisition Fees | 254,337,608 | |||
Total | 351,316,081 | |||
Accumulated Depreciation | $ 64,101,899 | |||
U.S. | Automotive parts | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Automotive parts | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Automotive service | ||||
SEC Schedule III | ||||
Number of Properties | property | 303 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 143,625,084 | |||
Buildings, Improvements and Acquisition Fees | 210,090,349 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 582,498 | |||
Carrying Costs | 164,051 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 143,625,084 | |||
Buildings, Improvements and Acquisition Fees | 210,836,898 | |||
Total | 354,461,982 | |||
Accumulated Depreciation | $ 66,008,493 | |||
U.S. | Automotive service | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Automotive service | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Automotive tire services | ||||
SEC Schedule III | ||||
Number of Properties | property | 196 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 122,250,160 | |||
Buildings, Improvements and Acquisition Fees | 225,175,623 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 384,194 | |||
Carrying Costs | 97,335 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 122,250,160 | |||
Buildings, Improvements and Acquisition Fees | 225,657,152 | |||
Total | 347,907,312 | |||
Accumulated Depreciation | $ 115,198,601 | |||
U.S. | Automotive tire services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Automotive tire services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 40 years | |||
U.S. | Beverages | ||||
SEC Schedule III | ||||
Number of Properties | property | 18 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 213,728,623 | |||
Buildings, Improvements and Acquisition Fees | 105,911,254 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 148 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 213,728,623 | |||
Buildings, Improvements and Acquisition Fees | 105,911,402 | |||
Total | 319,640,025 | |||
Accumulated Depreciation | $ 40,267,343 | |||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Book stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 998,250 | |||
Buildings, Improvements and Acquisition Fees | 3,696,707 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 129,751 | |||
Carrying Costs | 79 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 998,250 | |||
Buildings, Improvements and Acquisition Fees | 3,826,537 | |||
Total | 4,824,787 | |||
Accumulated Depreciation | $ 3,433,527 | |||
U.S. | Book stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 24 years | |||
U.S. | Book stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Child care | ||||
SEC Schedule III | ||||
Number of Properties | property | 274 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 95,553,417 | |||
Buildings, Improvements and Acquisition Fees | 212,059,451 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 5,053,358 | |||
Carrying Costs | 917,720 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 95,553,417 | |||
Buildings, Improvements and Acquisition Fees | 218,030,529 | |||
Total | 313,583,946 | |||
Accumulated Depreciation | $ 105,257,799 | |||
U.S. | Child care | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Child care | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Consumer appliances | ||||
SEC Schedule III | ||||
Number of Properties | property | 4 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 8,901,103 | |||
Buildings, Improvements and Acquisition Fees | 85,212,965 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 109,951 | |||
Carrying Costs | 55 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 8,901,103 | |||
Buildings, Improvements and Acquisition Fees | 85,322,971 | |||
Total | 94,224,074 | |||
Accumulated Depreciation | $ 13,916,454 | |||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Consumer electronics | ||||
SEC Schedule III | ||||
Number of Properties | property | 10 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 14,623,047 | |||
Buildings, Improvements and Acquisition Fees | 21,833,858 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 884,168 | |||
Carrying Costs | 51,616 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 14,623,047 | |||
Buildings, Improvements and Acquisition Fees | 22,769,642 | |||
Total | 37,392,689 | |||
Accumulated Depreciation | $ 11,068,011 | |||
U.S. | Consumer electronics | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 22 years | |||
U.S. | Consumer electronics | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Consumer goods | ||||
SEC Schedule III | ||||
Number of Properties | property | 4 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 7,663,458 | |||
Buildings, Improvements and Acquisition Fees | 124,173,738 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 894,295 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 7,663,458 | |||
Buildings, Improvements and Acquisition Fees | 125,068,033 | |||
Total | 132,731,491 | |||
Accumulated Depreciation | $ 22,472,474 | |||
U.S. | Consumer goods | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 34 years | |||
U.S. | Consumer goods | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Convenience stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 1,246 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 1,047,085,568 | |||
Buildings, Improvements and Acquisition Fees | 1,333,428,902 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (733,628) | |||
Carrying Costs | 145,550 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,047,085,568 | |||
Buildings, Improvements and Acquisition Fees | 1,332,840,824 | |||
Total | 2,379,926,392 | |||
Accumulated Depreciation | $ 322,769,573 | |||
U.S. | Convenience stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Convenience stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 26 years | |||
U.S. | Crafts and novelties | ||||
SEC Schedule III | ||||
Number of Properties | property | 19 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 20,948,352 | |||
Buildings, Improvements and Acquisition Fees | 70,829,924 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 881,481 | |||
Carrying Costs | 440,482 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 20,948,352 | |||
Buildings, Improvements and Acquisition Fees | 72,151,887 | |||
Total | 93,100,239 | |||
Accumulated Depreciation | $ 14,466,453 | |||
U.S. | Crafts and novelties | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 22 years | |||
U.S. | Crafts and novelties | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Diversified industrial | ||||
SEC Schedule III | ||||
Number of Properties | property | 6 | |||
Encumbrances | $ 19,397,723 | |||
Initial Cost to Company | ||||
Land | 10,231,370 | |||
Buildings, Improvements and Acquisition Fees | 108,326,826 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 114,454 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 10,231,370 | |||
Buildings, Improvements and Acquisition Fees | 108,441,280 | |||
Total | 118,672,650 | |||
Accumulated Depreciation | $ 17,452,956 | |||
U.S. | Diversified industrial | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Diversified industrial | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Dollar stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 1,302 | |||
Encumbrances | $ 11,127,000 | |||
Initial Cost to Company | ||||
Land | 428,220,601 | |||
Buildings, Improvements and Acquisition Fees | 1,249,436,205 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,459,285 | |||
Carrying Costs | 8,879 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 428,220,601 | |||
Buildings, Improvements and Acquisition Fees | 1,250,904,369 | |||
Total | 1,679,124,970 | |||
Accumulated Depreciation | $ 251,174,478 | |||
U.S. | Dollar stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Dollar stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Drug stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 387 | |||
Encumbrances | $ 130,834,786 | |||
Initial Cost to Company | ||||
Land | 578,997,186 | |||
Buildings, Improvements and Acquisition Fees | 1,340,130,844 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 4,948,980 | |||
Carrying Costs | 100,379 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 578,997,186 | |||
Buildings, Improvements and Acquisition Fees | 1,345,180,203 | |||
Total | 1,924,177,389 | |||
Accumulated Depreciation | $ 305,323,601 | |||
U.S. | Drug stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Drug stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Education | ||||
SEC Schedule III | ||||
Number of Properties | property | 14 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 6,739,123 | |||
Buildings, Improvements and Acquisition Fees | 21,648,901 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 472,942 | |||
Carrying Costs | 155,418 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 6,739,123 | |||
Buildings, Improvements and Acquisition Fees | 22,277,261 | |||
Total | 29,016,384 | |||
Accumulated Depreciation | $ 17,188,255 | |||
U.S. | Education | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Education | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Electric utilities | ||||
SEC Schedule III | ||||
Number of Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 1,450,000 | |||
Buildings, Improvements and Acquisition Fees | 9,209,989 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,450,000 | |||
Buildings, Improvements and Acquisition Fees | 9,209,989 | |||
Total | 10,659,989 | |||
Accumulated Depreciation | $ 1,678,439 | |||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Entertainment | ||||
SEC Schedule III | ||||
Number of Properties | property | 10 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 28,373,479 | |||
Buildings, Improvements and Acquisition Fees | 10,617,464 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 327,607 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 28,373,479 | |||
Buildings, Improvements and Acquisition Fees | 10,945,071 | |||
Total | 39,318,550 | |||
Accumulated Depreciation | $ 6,178,632 | |||
U.S. | Entertainment | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 24 years | |||
U.S. | Entertainment | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Equipment services | ||||
SEC Schedule III | ||||
Number of Properties | property | 7 | |||
Encumbrances | $ 7,073,296 | |||
Initial Cost to Company | ||||
Land | 4,116,067 | |||
Buildings, Improvements and Acquisition Fees | 54,045,575 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 689,663 | |||
Carrying Costs | 140 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 4,116,067 | |||
Buildings, Improvements and Acquisition Fees | 54,735,378 | |||
Total | 58,851,445 | |||
Accumulated Depreciation | $ 14,967,071 | |||
U.S. | Equipment services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Equipment services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Financial services | ||||
SEC Schedule III | ||||
Number of Properties | property | 239 | |||
Encumbrances | $ 13,800,000 | |||
Initial Cost to Company | ||||
Land | 115,487,739 | |||
Buildings, Improvements and Acquisition Fees | 351,992,876 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (3,690,753) | |||
Carrying Costs | 101,099 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 115,487,739 | |||
Buildings, Improvements and Acquisition Fees | 348,403,222 | |||
Total | 463,890,961 | |||
Accumulated Depreciation | $ 74,256,644 | |||
U.S. | Financial services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Financial services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Food processing | ||||
SEC Schedule III | ||||
Number of Properties | property | 7 | |||
Encumbrances | $ 28,867,158 | |||
Initial Cost to Company | ||||
Land | 13,226,562 | |||
Buildings, Improvements and Acquisition Fees | 153,588,645 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 210,469 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 13,226,562 | |||
Buildings, Improvements and Acquisition Fees | 153,799,114 | |||
Total | 167,025,676 | |||
Accumulated Depreciation | $ 20,948,814 | |||
U.S. | Food processing | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Food processing | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | General merchandise | ||||
SEC Schedule III | ||||
Number of Properties | property | 100 | |||
Encumbrances | $ 5,070,372 | |||
Initial Cost to Company | ||||
Land | 104,508,825 | |||
Buildings, Improvements and Acquisition Fees | 436,513,003 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (2,938,508) | |||
Carrying Costs | 557,868 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 104,508,825 | |||
Buildings, Improvements and Acquisition Fees | 434,132,363 | |||
Total | 538,641,188 | |||
Accumulated Depreciation | $ 63,223,300 | |||
U.S. | General merchandise | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | General merchandise | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Government services | ||||
SEC Schedule III | ||||
Number of Properties | property | 16 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 8,093,555 | |||
Buildings, Improvements and Acquisition Fees | 121,514,780 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,981,604 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 8,093,555 | |||
Buildings, Improvements and Acquisition Fees | 124,496,384 | |||
Total | 132,589,939 | |||
Accumulated Depreciation | $ 25,784,980 | |||
U.S. | Government services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Government services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Grocery stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 132 | |||
Encumbrances | $ 38,621,000 | |||
Initial Cost to Company | ||||
Land | 264,275,526 | |||
Buildings, Improvements and Acquisition Fees | 780,156,042 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,811,459 | |||
Carrying Costs | 325,183 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 264,275,526 | |||
Buildings, Improvements and Acquisition Fees | 782,292,684 | |||
Total | 1,046,568,210 | |||
Accumulated Depreciation | $ 124,219,525 | |||
U.S. | Grocery stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Grocery stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Health and beauty | ||||
SEC Schedule III | ||||
Number of Properties | property | 2 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 2,475,474 | |||
Buildings, Improvements and Acquisition Fees | 42,821,046 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 68,912 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,475,474 | |||
Buildings, Improvements and Acquisition Fees | 42,889,958 | |||
Total | 45,365,432 | |||
Accumulated Depreciation | $ 1,979,227 | |||
U.S. | Health and beauty | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Health and beauty | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Health and fitness | ||||
SEC Schedule III | ||||
Number of Properties | property | 103 | |||
Encumbrances | $ 4,281,354 | |||
Initial Cost to Company | ||||
Land | 246,562,831 | |||
Buildings, Improvements and Acquisition Fees | 990,068,700 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 8,099,776 | |||
Carrying Costs | 172,145 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 246,562,831 | |||
Buildings, Improvements and Acquisition Fees | 998,340,621 | |||
Total | 1,244,903,452 | |||
Accumulated Depreciation | $ 225,107,912 | |||
U.S. | Health and fitness | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Health and fitness | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Health care | ||||
SEC Schedule III | ||||
Number of Properties | property | 64 | |||
Encumbrances | $ 4,079,345 | |||
Initial Cost to Company | ||||
Land | 46,055,832 | |||
Buildings, Improvements and Acquisition Fees | 298,433,438 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,748,031 | |||
Carrying Costs | 1,314,067 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 46,055,832 | |||
Buildings, Improvements and Acquisition Fees | 303,495,536 | |||
Total | 349,551,368 | |||
Accumulated Depreciation | $ 55,246,790 | |||
U.S. | Health care | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 14 years | |||
U.S. | Health care | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Home furnishings | ||||
SEC Schedule III | ||||
Number of Properties | property | 73 | |||
Encumbrances | $ 9,700,000 | |||
Initial Cost to Company | ||||
Land | 35,099,395 | |||
Buildings, Improvements and Acquisition Fees | 113,295,067 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,562,697 | |||
Carrying Costs | 372,213 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 35,099,395 | |||
Buildings, Improvements and Acquisition Fees | 116,229,977 | |||
Total | 151,329,372 | |||
Accumulated Depreciation | $ 39,350,470 | |||
U.S. | Home furnishings | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Home furnishings | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Home improvement | ||||
SEC Schedule III | ||||
Number of Properties | property | 77 | |||
Encumbrances | $ 17,725,463 | |||
Initial Cost to Company | ||||
Land | 186,981,286 | |||
Buildings, Improvements and Acquisition Fees | 375,408,283 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,113,587 | |||
Carrying Costs | 75,210 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 186,981,286 | |||
Buildings, Improvements and Acquisition Fees | 377,597,080 | |||
Total | 564,578,366 | |||
Accumulated Depreciation | $ 69,273,547 | |||
U.S. | Home improvement | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Home improvement | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Insurance | ||||
SEC Schedule III | ||||
Number of Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 634,343 | |||
Buildings, Improvements and Acquisition Fees | 6,331,030 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 634,343 | |||
Buildings, Improvements and Acquisition Fees | 6,331,030 | |||
Total | 6,965,373 | |||
Accumulated Depreciation | $ 1,867,654 | |||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Jewelry | ||||
SEC Schedule III | ||||
Number of Properties | property | 4 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 0 | |||
Buildings, Improvements and Acquisition Fees | 8,268,989 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 0 | |||
Buildings, Improvements and Acquisition Fees | 8,268,989 | |||
Total | 8,268,989 | |||
Accumulated Depreciation | $ 2,301,535 | |||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Machinery | ||||
SEC Schedule III | ||||
Number of Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 1,630,917 | |||
Buildings, Improvements and Acquisition Fees | 12,938,430 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 1,630,917 | |||
Buildings, Improvements and Acquisition Fees | 12,938,430 | |||
Total | 14,569,347 | |||
Accumulated Depreciation | $ 3,859,965 | |||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Motor vehicle dealerships | ||||
SEC Schedule III | ||||
Number of Properties | property | 28 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 115,897,045 | |||
Buildings, Improvements and Acquisition Fees | 143,335,317 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 230 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 115,897,045 | |||
Buildings, Improvements and Acquisition Fees | 143,335,547 | |||
Total | 259,232,592 | |||
Accumulated Depreciation | $ 50,293,566 | |||
U.S. | Motor vehicle dealerships | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Motor vehicle dealerships | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Office supplies | ||||
SEC Schedule III | ||||
Number of Properties | property | 8 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 8,551,005 | |||
Buildings, Improvements and Acquisition Fees | 15,480,491 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 955,594 | |||
Carrying Costs | 349,599 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 8,551,005 | |||
Buildings, Improvements and Acquisition Fees | 16,785,684 | |||
Total | 25,336,689 | |||
Accumulated Depreciation | $ 13,661,632 | |||
U.S. | Office supplies | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 22 years | |||
U.S. | Office supplies | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Other manufacturing | ||||
SEC Schedule III | ||||
Number of Properties | property | 7 | |||
Encumbrances | $ 23,897,971 | |||
Initial Cost to Company | ||||
Land | 8,893,136 | |||
Buildings, Improvements and Acquisition Fees | 104,286,273 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,663,646 | |||
Carrying Costs | 240,191 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 8,893,136 | |||
Buildings, Improvements and Acquisition Fees | 106,190,110 | |||
Total | 115,083,246 | |||
Accumulated Depreciation | $ 18,426,589 | |||
U.S. | Other manufacturing | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 33 years | |||
U.S. | Other manufacturing | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Packaging | ||||
SEC Schedule III | ||||
Number of Properties | property | 10 | |||
Encumbrances | $ 2,164,411 | |||
Initial Cost to Company | ||||
Land | 20,323,553 | |||
Buildings, Improvements and Acquisition Fees | 163,714,298 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,480,122 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 20,323,553 | |||
Buildings, Improvements and Acquisition Fees | 166,194,420 | |||
Total | 186,517,973 | |||
Accumulated Depreciation | $ 27,809,312 | |||
U.S. | Packaging | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 24 years | |||
U.S. | Packaging | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Paper | ||||
SEC Schedule III | ||||
Number of Properties | property | 2 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 2,462,414 | |||
Buildings, Improvements and Acquisition Fees | 11,934,685 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 44,759 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,462,414 | |||
Buildings, Improvements and Acquisition Fees | 11,979,444 | |||
Total | 14,441,858 | |||
Accumulated Depreciation | $ 3,405,630 | |||
U.S. | Paper | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Paper | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Pet supplies and services | ||||
SEC Schedule III | ||||
Number of Properties | property | 33 | |||
Encumbrances | $ 2,509,000 | |||
Initial Cost to Company | ||||
Land | 21,563,825 | |||
Buildings, Improvements and Acquisition Fees | 101,699,137 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 4,604,704 | |||
Carrying Costs | 243,582 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 21,563,825 | |||
Buildings, Improvements and Acquisition Fees | 106,547,423 | |||
Total | 128,111,248 | |||
Accumulated Depreciation | $ 21,261,419 | |||
U.S. | Pet supplies and services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 11 years | |||
U.S. | Pet supplies and services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Restaurants-casual dining | ||||
SEC Schedule III | ||||
Number of Properties | property | 284 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 241,578,772 | |||
Buildings, Improvements and Acquisition Fees | 459,061,392 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 6,015,925 | |||
Carrying Costs | 2,104,667 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 241,578,772 | |||
Buildings, Improvements and Acquisition Fees | 467,181,984 | |||
Total | 708,760,756 | |||
Accumulated Depreciation | $ 132,235,171 | |||
U.S. | Restaurants-casual dining | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Restaurants-casual dining | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 40 years | |||
U.S. | Restaurants-quick service | ||||
SEC Schedule III | ||||
Number of Properties | property | 907 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 429,303,832 | |||
Buildings, Improvements and Acquisition Fees | 781,719,427 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 501,803 | |||
Carrying Costs | 226,201 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 429,303,832 | |||
Buildings, Improvements and Acquisition Fees | 782,447,431 | |||
Total | 1,211,751,263 | |||
Accumulated Depreciation | $ 152,596,196 | |||
U.S. | Restaurants-quick service | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Restaurants-quick service | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 26 years | |||
U.S. | Shoe stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 3 | |||
Encumbrances | $ 8,519,815 | |||
Initial Cost to Company | ||||
Land | 6,251,472 | |||
Buildings, Improvements and Acquisition Fees | 35,793,479 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 214,466 | |||
Carrying Costs | 214,706 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 6,251,472 | |||
Buildings, Improvements and Acquisition Fees | 36,222,651 | |||
Total | 42,474,123 | |||
Accumulated Depreciation | $ 9,719,936 | |||
U.S. | Shoe stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 23 years | |||
U.S. | Shoe stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Sporting goods | ||||
SEC Schedule III | ||||
Number of Properties | property | 22 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 36,258,595 | |||
Buildings, Improvements and Acquisition Fees | 107,396,447 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,854,750 | |||
Carrying Costs | 178,206 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 36,258,595 | |||
Buildings, Improvements and Acquisition Fees | 109,429,403 | |||
Total | 145,687,998 | |||
Accumulated Depreciation | $ 26,537,565 | |||
U.S. | Sporting goods | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Sporting goods | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Telecommunications | ||||
SEC Schedule III | ||||
Number of Properties | property | 7 | |||
Encumbrances | $ 8,578,171 | |||
Initial Cost to Company | ||||
Land | 9,269,789 | |||
Buildings, Improvements and Acquisition Fees | 68,360,132 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,484,423 | |||
Carrying Costs | 21,884 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 9,269,789 | |||
Buildings, Improvements and Acquisition Fees | 69,866,439 | |||
Total | 79,136,228 | |||
Accumulated Depreciation | $ 17,849,025 | |||
U.S. | Telecommunications | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 22 years | |||
U.S. | Telecommunications | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.S. | Theaters | ||||
SEC Schedule III | ||||
Number of Properties | property | 79 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 231,747,795 | |||
Buildings, Improvements and Acquisition Fees | 829,701,257 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 10,680,179 | |||
Carrying Costs | 270 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 231,747,795 | |||
Buildings, Improvements and Acquisition Fees | 840,381,706 | |||
Total | 1,072,129,501 | |||
Accumulated Depreciation | $ 194,026,206 | |||
U.S. | Theaters | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Theaters | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Transportation services | ||||
SEC Schedule III | ||||
Number of Properties | property | 58 | |||
Encumbrances | $ 19,380,313 | |||
Initial Cost to Company | ||||
Land | 109,027,503 | |||
Buildings, Improvements and Acquisition Fees | 824,491,647 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (3,820,929) | |||
Carrying Costs | 401,593 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 109,027,503 | |||
Buildings, Improvements and Acquisition Fees | 821,072,311 | |||
Total | 930,099,814 | |||
Accumulated Depreciation | $ 160,485,427 | |||
U.S. | Transportation services | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 24 years | |||
U.S. | Transportation services | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 36 years | |||
U.S. | Wholesale clubs | ||||
SEC Schedule III | ||||
Number of Properties | property | 32 | |||
Encumbrances | $ 17,820,000 | |||
Initial Cost to Company | ||||
Land | 170,229,880 | |||
Buildings, Improvements and Acquisition Fees | 325,098,377 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (3,889,998) | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 170,229,880 | |||
Buildings, Improvements and Acquisition Fees | 321,208,379 | |||
Total | 491,438,259 | |||
Accumulated Depreciation | $ 94,747,849 | |||
U.S. | Wholesale clubs | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Wholesale clubs | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.S. | Other | ||||
SEC Schedule III | ||||
Number of Properties | property | 6 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 7,254,447 | |||
Buildings, Improvements and Acquisition Fees | 24,355,185 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 795,984 | |||
Carrying Costs | 18,796 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 7,254,447 | |||
Buildings, Improvements and Acquisition Fees | 25,169,965 | |||
Total | 32,424,412 | |||
Accumulated Depreciation | $ 5,639,308 | |||
U.S. | Other | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 0 years | |||
U.S. | Other | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 35 years | |||
U.K. | Grocery stores | ||||
SEC Schedule III | ||||
Number of Properties | property | 17 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 310,089,274 | |||
Buildings, Improvements and Acquisition Fees | 360,054,272 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 310,089,274 | |||
Buildings, Improvements and Acquisition Fees | 360,054,272 | |||
Total | 670,143,546 | |||
Accumulated Depreciation | $ 6,933,409 | |||
U.K. | Grocery stores | Minimum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 25 years | |||
U.K. | Grocery stores | Maximum | ||||
Gross Amounts at Which Carried at Close of Period | ||||
Life on which depreciation in latest Income Statement is Computed | 115 years | |||
U.K. | Theaters | ||||
SEC Schedule III | ||||
Number of Properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company | ||||
Land | 2,060,151 | |||
Buildings, Improvements and Acquisition Fees | 2,921,471 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 0 | |||
Carrying Costs | 0 | |||
Gross Amounts at Which Carried at Close of Period | ||||
Land | 2,060,151 | |||
Buildings, Improvements and Acquisition Fees | 2,921,471 | |||
Total | 4,981,622 | |||
Accumulated Depreciation | $ 4,869 | |||
Life on which depreciation in latest Income Statement is Computed | 25 years |
Schedule III Real Estate and _3
Schedule III Real Estate and Accumulated Depreciation - Summary of Activity (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | Jan. 01, 2019USD ($) | |
Reconciliation of total real estate carrying value | ||||
Balance at Beginning of Period | $ 16,566,601,986 | $ 15,027,043,415 | $ 13,904,519,436 | |
Acquisitions | 3,644,884,106 | 1,802,745,841 | 1,531,960,811 | |
Less amounts allocated to acquired lease intangible assets and liabilities on our Consolidated Balance Sheets | (401,318,627) | (89,474,897) | (238,556,294) | |
Improvements, Etc. | 17,447,145 | 23,043,158 | 11,067,322 | |
Other (Leasing Costs and Building Adjustments as a result of net debt premiums) | 2,740,797 | 2,839,574 | 1,584,152 | |
Total Additions | 3,263,753,421 | 1,739,153,676 | 1,306,055,991 | |
Cost of Real Estate sold | 129,736,613 | 165,023,825 | 150,394,756 | |
Cost of Equipment sold | 11,200 | 15,650 | 0 | |
Releasing costs | 673,647 | 232,089 | 109,986 | |
Other (including Provisions for Impairment) | 87,951,488 | 34,323,541 | 33,027,270 | |
Total Deductions | 218,372,948 | 199,595,105 | 183,532,012 | |
Foreign Currency Translation | 25,644,393 | 0 | 0 | |
Balance at Close of Period | 19,637,626,852 | 16,566,601,986 | 15,027,043,415 | |
Reconciliation of accumulated depreciation | ||||
Balance at Beginning of Period | 2,723,085,290 | 2,350,544,126 | 2,000,728,517 | |
Additions During Period - Provision for Depreciation | 481,498,979 | 432,482,396 | 393,415,491 | |
Accumulated depreciation of real estate and equipment sold or disposed of | 64,053,838 | 59,941,232 | 43,599,882 | |
Foreign Currency Translation | 324,174 | 0 | 0 | |
Balance at Close of Period | $ 3,140,854,604 | $ 2,723,085,290 | $ 2,350,544,126 | |
Other Disclosure Notes | ||||
Number of properties | property | 6,484 | |||
Number of properties secured by mortgages | property | 92 | |||
Unamortized net debt premiums on mortgages payable excluded from encumbrances | $ 3,000,000 | |||
Aggregate cost for federal income tax purposes | $ 20,070,200,483 | |||
Reclassification of right of use assets under finance leases | $ 36,900,000 | |||
Number of properties on which provisions for impairment were recorded | property | 51 | 44 | 26 | |
U.S. | Single-tenant properties | ||||
Other Disclosure Notes | ||||
Number of properties | property | 6,417 | |||
U.S. | Corporate headquarters | ||||
Other Disclosure Notes | ||||
Number of properties | property | 1 | |||
U.S. | Crest Net Lease properties | ||||
Other Disclosure Notes | ||||
Number of properties | property | 17 | |||
U.S. | Multi-tenant properties | ||||
Other Disclosure Notes | ||||
Number of properties | property | 31 | |||
U.K. | Single-tenant properties | ||||
Other Disclosure Notes | ||||
Number of properties | property | 18 | |||
Crest Net Lease, Inc | ||||
Other Disclosure Notes | ||||
Aggregate cost for federal income tax purposes | $ 73,548,861 |