(Reuters) - Realty Income (NYSE:O) edged past Wall Street expectations for second-quarter funds from operations (FFO) on Monday, as the real estate investment trust benefited from higher rental revenue at its properties.
The REIT, which has more than 13,400 properties across the United States and Europe, leases its locations to clients across industries such as retail, restaurants, industrial and gaming.
While property management costs climbed, the company was able to cushion its FFO by pushing up rental rates and investing in high-growth properties.
Same-store rental revenue for quarter ended June 30 came in at $1 billion, compared with $998.2 million a year earlier.
Realty Income reported total revenue of $1.34 billion in the quarter, above analysts' average estimate of $1.25 billion, according to LSEG data.
The San Diego, California-based company posted adjusted FFO of $1.06 per share, compared with analysts' estimate of $1.05.
It cut 2024 net income forecast to be in the range of $1.21 to $1.30 per share from its previous projection of $1.26 to $1.35 per share, but maintained expectations for annual adjusted FFO.