Spirit Realty Capital Inc (SRC) Reports Q3 2023 Earnings: Net Income per Share at $0.25
Spirit Realty Capital Inc (NYSE:SRC) reported a net income per share of $0.25, down from $0.54 in Q3 2022.
The company increased its common stock quarterly dividend from $0.6630 per share to $0.6696 per share.
SRC invested $124.6 million in acquisitions and revenue-producing expenditures.
The company generated $73.9 million in gross proceeds from dispositions.
On November 2, 2023, Spirit Realty Capital Inc (NYSE:SRC) released its financial and operating results for the third quarter ended September 30, 2023. The company reported a net income per share of $0.25, down from $0.54 in the same quarter in 2022. Despite the decrease in net income, SRC increased its common stock quarterly dividend from $0.6630 per share to $0.6696 per share, marking a 1.0% increase.
Financial Highlights
The company invested $124.6 million at a Cash Capitalization Rate of 7.76%, including the acquisition of 12 properties with a weighted average lease term of 18.3 years. SRC generated $73.9 million in gross proceeds from the disposition of 19 vacant properties and 20 occupied properties, with a Disposition Capitalization Rate of 8.04%. From October 1, 2023, through November 1, 2023, the company generated $55.3 million in gross proceeds from the disposition of 15 occupied properties, with a Disposition Capitalization Rate of 6.44%.
Operational Performance
SRC maintained strong operational performance, with an occupancy rate of 99.6% and Lost Rent of 0.2%. The company held Corporate Liquidity of $1.5 billion as of September 30, 2023, comprised of cash and cash equivalents, 1031 Exchange proceeds, and availability under the 2019 Credit Facility and delayed-draw term loans.
Dividend and Guidance
For the third quarter of 2023, the Board of Directors declared an increased quarterly cash dividend of $0.6696 per share of common stock, representing an annualized rate of $2.6784 per share. However, in light of the company's proposed merger with Realty Income Corporation, SRC has withdrawn its guidance for 2023.
Financial Tables
In the third quarter of 2023, SRC reported a net income attributable to common stockholders of $35,881,000, down from $74,053,000 in the same period in 2022. The company's FFO attributable to common stockholders was $130,701,000, up from $126,777,000 in Q3 2022. The AFFO attributable to common stockholders was $131,001,000, up from $122,785,000 in the same quarter of the previous year.
As of September 30, 2023, the company's total debt, net was $3,820,248,000. The company's Adjusted Debt was $3,716,034,000, and the Adjusted Debt + Preferred Stock was $3,888,534,000. The company's Annualized Adjusted EBITDAre was $708,220,000.
Overall, despite a decrease in net income per share, Spirit Realty Capital Inc (NYSE:SRC) demonstrated strong operational performance and made significant investments in acquisitions and revenue-producing expenditures.
Explore the complete 8-K earnings release (here) from Spirit Realty Capital Inc for further details.
This article first appeared on GuruFocus.
