Realty Income tops revenue estimates on higher rent growth

(Reuters) – Realty Income (NYSE:) topped Wall Street expectations for quarterly revenue on Monday, as the company benefited from higher occupancy and increased rental revenue from its properties.

The real estate investment trust, which has more than 15,450 properties across the United States and Europe, leases its locations to clients in a variety of industries including retail, restaurants, industrial and gaming.

Realty Income, which has been investing heavily in expanding its footprint, particularly in Europe, reported total revenue of $1.26 billion in the first quarter, up from $944.4 million a year earlier and above analysts’ expectations of $1.20 billion, according to LSEG data.

While property management costs have climbed, the company has been able to pad its earnings by increasing its investments in high-growth properties and pushing up rental rates.

San Diego, California-based Realty Income reported adjusted funds from operations of $1.03 per share for the quarter, compared with analysts’ average estimate of $1.05, according to LSEG data.

Shares of the company were mostly flat in trading after the bell.