While rents decreased 1.1% during the quarter, Lewis said the numbers should turn positive over the next several quarters. Same-store rents were flat or slightly up, particularly for casual-dining restaurants and buffets, health and fitness businesses, theaters and child-care businesses.

“From a diversification standpoint, we’re well diversified, and we anticipate materially adding to our acquisitions in the second quarter,” Lewis said.

The average remaining lease length for Realty Income’s properties was healthy at 11.1 years. “The balance feels pretty good, and I think we should have a good year in operations,” Lewis said.

Portfolio management has been brisk and appears to be stable going forward, he added, with no new tenant issues emerging in the last quarter.

EVP, CFO and treasurer Paul Meurer gave his financial report next during the call, saying the company invested $10 million in acquisitions in the first quarter and expects to close $514 million in acquisitions during the second quarter. The portfolio is composed of 250 properties, and virtually all of the acquisitions are retail properties.

‘We have a broad range of investment opportunities,” Meurer said. “We’re looking at 1,300 properties, 115 tenants and 33 industries. Retail and distribution properties are at least half of these.”

Realty Income is raising its acquisition estimates for this year from $500 million to $550 million, and initial lease terms should average 15 years or longer, Meurer said.

As GlobeSt.com previously reported, in March 2011 the REIT signed purchase agreements to acquire up to 33 single-tenant, retail, distribution, office and manufacturing properties under long-term net leases for approximately $544 million. The properties were located in 17 different states and consisted of approximately 3.8 million square feet of leasable space. The majority of the lease revenue from these single-tenant properties was being generated from investment-grade tenants, or their operating subsidiaries, in 11 different industries.