Spirit Realty Capital, Inc (New)(NYSE:SRC) posted better than expected second quarter results, revenues having increased by 2.3% to highs of $171.7 million compared to $167.9 million posted last year same quarter. Revenue for the first six months of the year was also up by 3% to highs of $340.1 million, compared to $330.2 million for the first half of last year.
Q2 Results
In contrast, net income for the three months ending June 30, 2016, was down to $49.5 million compared to $60.9 million posted last year same quarter. Net income attributable to stockholders was also down by 12.4% to $75.5 million.
During the quarter, Spirit Realty completed 23 new real estate transactions valued at $240.6 million bringing its total properties portfolio to 125 properties. Properties disposed in the quarter totaled 65 bringing in $244.4 million at the back of a weighted average capitalization rate of 6.37%. As of the end of the quarter, the company’s 2,654 was fully occupied at 98.3% to 443 tenants in 28 diverse industries.
Spirit Realty rewarded its shareholders with a dividend offer of $0.175 in the quarter. The dividend was paid on July 15, 2016, to all shareholders on record as of June 30, 2016, equating to an annualized dividend offer of $0.70 a share.
Management Changes
Chief Executive Officer, Thomas H. Nolan, Jr, during the earnings call reiterated that they continue to execute various strategic initiatives intended to expand and diversify the company’s property portfolio. Strengthening the balance sheet to support long-term growth is also a core objective according to the executive.
Meanwhile, the company has confirmed the appointment of Jackson Hsieh as president and Chief Operating Officer. Boyd Messmann also joins the management team as the Executive vice President and Chief Acquisition officer. The two bring a combined 50 years’ worth of experience that Spirit Realty Capital, Inc (New) (NYSE:SRC) plans to leverage as it strives to bolster its portfolio holding and expand its business empire.
