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Growing International Portfolio

Adjusted EBITDAre (dollars in thousands) REALTY INCOME Adjusted EBITDAre, Annualized Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized Pro Forma Adjusted EBITDAre, Net Debt/Annualized Adjusted EBITDAre and Net Debt/Annualized Pro Forma Adjusted EBITDAre are non-GAAP financial measures. Please see the Glossary on page 14 of the earnings press release for our definition and an explanation of how we utilize these metrics Three months ended June 30, Net income Interest Gain on extinguishment of debt Income taxes Depreciation and amortization Provisions for impairment Merger and integration-related costs Gain on sales of real estate Foreign currency and derivative losses (gains), net Gain on settlement of foreign currency forwards 12,932 472,278 29,815 2023 2022 $ 197,153 $ 183,857 223,822 110,121 (127) 14,658 409,437 7,691 341 2,729 (7,824) (40,572) 2,552 (7,480) 2,106 Proportionate share of adjustments from unconsolidated entities (411) 9,049 Quarterly Adjusted EBITDAre $ 890,693 $ 731,434 Annualized Adjusted EBITDAre (1) $ 3,562,772 $ 2,925,736 Annualized Pro Forma Adjustments $ 87,712 $ 55,756 Annualized Pro Forma Adjusted EBITDAre $ 3,650,484 $ 2,981,492 Total debt per the consolidated balance sheet, excluding deferred financing costs and net premiums and discounts 19,538,466 $ 15,738,383 Proportionate share for unconsolidated entities debt, excluding deferred financing costs Less: Cash and cash equivalents 86,006 Net Debt (2) Net Debt/Annualized Adjusted EBITDAre $ (253,693) 19,284,773 $ (172,849) 15,651,540 Net Debt/Annualized Pro Forma Adjusted EBITDAre 5.4x 5.3x 5.3x 5.2x (1) We calculate Annualized Adjusted EBITDAre by multiplying the Quarterly Adjusted EBITDAre by four. (2) Net Debt is total debt per our consolidated balance sheets, excluding deferred financing costs and net premiums and discounts, but including our proportionate share on debt from unconsolidated entities, less cash and cash equivalents. Annualized Pro Forma Adjustments, which include transaction accounting adjustments in accordance with U.S GAAP, consist of adjustments to incorporate Adjusted EBITDAre from properties we acquired or stabilized during the applicable quarter and remove Adjusted EBITDAre from properties we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable period. Our calculation includes all adjustments consistent with the requirements to present Adjusted EBITDAre on a pro forma basis in accordance with Article 11 of Regulation S-X. Annualized Pro Forma Adjustments are consistent with the debt service coverage ratio calculated under financial covenants for our senior unsecured notes. 64
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