ESCONDIDO, CA—Locally based Realty Income Corp. recently reported operating results for the first quarter ending March 31st, showing that for the quarter—as compared to the quarterly period in 2013—revenue increased 26.3% to 221.6 million as compared to $175.5 million.

According to the firm’s CEO, John Case, “the portfolio continues to perform quite well, with same store rent rising 1.5% from a year ago and occupancy increasing to 98.3%, the highest it’s been since 2007.”

Case notes that “Acquisitions again contributed to these positive first quarter results. We completed $656.7 million in acquisitions this quarter making it our second most acquisitive quarter in our company’s history.”

The acquisitions case is referring to include the $274.3 million of the previously revealed $503-million transaction with Inland Diversified Real Estate Trust Inc., as previously reported on. “We expect the majority of the remaining properties to close during the second quarter of 2014,” Case adds.

According to a report from analysts at RBC Capital Markets, after a first look at Realty Income’s Q1 earnings, “despite the outperformance in 1Q14, management reiterated its 2014 FFO/share guidance of $2.53-$2.58 given that the acquired assets were essentially funded in 2Q14.” Annual acquisition guidance is currently $1.2 billion, says RBC. “The company’s portfolio remains very healthy from a tenant standpoint, and acquisitions remain plentiful. The stock, however, appears fairly valued in our view.”

One of the most difficult aspects of analyzing the triple net universe, says RBC, is trying to ascertain the cap rate at which the various common stocks should trade. “Viewed on a comparable basis to assets that sell in the market, most of the triple net space, including Realty Income, would appear expensive as most acquisitions are made at cap rates above the cap rates implied by the current share prices.”