More than half of US investor Realty Income’s Q1 investment was channelled into acquisitions in the UK and Europe, as it continues to focus on amassing a portfolio away from its home market.
The investor spent $598m (£477m) on acquiring 155 properties and developments globally during the quarter ended 31 March, at an initial weighted average cash yield of 7.8%. That included $16m on five property acquisitions in the US.
Realty said some 54% of the total was directed to purchases in the UK and Europe, at an initial weighted average cash yield of 8.2%. It invested $302.6m into eight properties in those markets.
Overall, the investor spent $318m on real estate acquisitions during the quarter, and a further $297.4m on properties under development. The latter included £8.7m spent on UK development sites and €8.4m on developments in Spain.
The acquisition volumes are down on Q1 2023, when Realty invested $389.7m into 20 properties in Europe, and more than $1bn in US purchases.
Sumit Roy, president and chief executive at Realty Income, said: “International growth continues to be a differentiating avenue for Realty Income to generate accretive earnings growth as our unique platform allows us to partner with best-in-class clients in a highly fragmented net lease market.”
As of Q1, Realty owned or held stakes in 15,485 properties leased to 1,552 occupiers.
Total revenue at the investor rose to $1.3bn, from $944.4m in the same period last year. Net income per share nearly halved to $0.16 in Q1 this year, from $0.34.
Realty has invested in the UK since 2019. It made its debut in France, Germany and Portugal last year.
Photo © Gerd Altmann/Pixabay
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