Realty Income Corporation (O) Earnings

Realty Income Corporation

O · NYSE

Symbol: O
Type: Stock
Sector: Real Estate
Industry: Real Estate Investment Trusts
Country: North America
Exchange: NYSE

Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the world's leading companies. Founded in 1969, we serve our clients as a full-service real estate capital provider. As of September 30, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the United Kingdom ('U.K.'), and eight other countries in Europe. We are known as 'The Monthly Dividend Company' and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since our founding, we have declared 676 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats index for having increased our dividend for over 32 consecutive years. Additional information about the company can be found at www.realtyincome.com . Investors and others should note that we announce material financial and operational information to our investors using our investor relations website ( www.realtyincome.

Key Issues

Bullish view

High occupancy, steady rent growth and active investments provide recurring operating support, according to Zacks, potentially allowing Realty Income to keep expanding despite higher borrowing costs.

Bearish view

Higher borrowing costs can pressure financing economics and constrain the benefit of new investments, leaving the company more exposed if rent growth or occupancy momentum slows.

Analyst Consensus

See all

Hold

20 analysts

$57

Current

—

Low

$64

Average

—

High

Average target implies +10.93% versus the current price.

Earnings History

BeatMissNo estimate

Dec 2026upcoming

Next quarter

Consensus is $1.12 EPS for Dec 2026 across 6 estimates, ranging $1.11 to $1.13.

O Sep 2026

Reported Nov 2, 2026 · after the close

: 0.90%
: Pending

: $1.11
: $1.12
: —
: $1.62B

Reported results

: $1.62B; from $1.47B
: $432.14M; from $315.77M
: $0.43; from $0.35

Highlights

AFFO and expectations: AFFO per diluted share was $1.12, up 3.7% year over year and 0.9% above the stated $1.11 consensus; GAAP diluted EPS was $0.43.
Guidance: Raised 2026 AFFO per-share guidance to $4.45–$4.46 from $4.44–$4.45 and reaffirmed the $10.0 billion investment-volume target.
Investment deployment: Invested $2.6 billion in the quarter, or $2.2 billion pro rata, at a 6.8% initial cash yield and an approximately 170-basis-point leverage-neutral spread.
Capital allocation: The €528 million KKR investment for a 49% interest in a 54-property European joint venture extended Realty Income’s private-capital platform into Europe.
Portfolio operations: Occupancy was 98.8%; same-store rental revenue grew 1.1%, and rent recapture was 103.5% on re-leased properties.
Capital position: Available liquidity was $5.4 billion and net debt to annualized pro forma Adjusted EBITDAre was 5.4x, or 5.2x including unsettled ATM forward equity.
Capital recycling: Sold 182 properties for $526.6 million of net proceeds in the quarter; year-to-date proceeds were $875.2 million.
Dividend: The annualized dividend was $3.258 per share, with quarterly AFFO covering 72.6% of the dividend.

Analysis

Realty Income delivered $1.12 of AFFO per diluted share, 1 cent above the stated $1.11 consensus and 3.7% higher than a year earlier. GAAP diluted EPS was $0.43. Revenue rose 10.3% year over year to $1.62 billion, while net income available to common stockholders increased to $403.9 million from $315.8 million. Against the prior quarter, revenue increased from $1.55 billion and net income from $370.5 million; the supplied materials do not provide a sequential AFFO comparison. The quarter’s central theme was continued growth alongside a broader set of investment and funding options, rather than a step-change in underlying rent growth: same-store rental revenue increased 1.1% and occupancy held at 98.8%.

The company invested $2.6 billion, or $2.2 billion pro rata, at a 6.8% initial cash yield and reported a roughly 170-basis-point leverage-neutral spread. Europe, industrial and credit investments featured prominently, while the KKR joint venture added a euro-denominated private-capital channel. Realty Income raised 2026 AFFO guidance by 1 cent at the midpoint to $4.45–$4.46 and maintained its $10.0 billion investment target. Management also raised its occupancy outlook to above 98.5% and lowered expected credit losses to about 30 basis points from 40, citing asset-management execution and better-than-expected tenant credit.

AFFO and earnings

AFFO per diluted share rose to $1.12 from $1.08 a year earlier, while normalized FFO per share was $1.10 versus $1.09. Revenue increased 10.3% year over year to $1.62 billion, and net income available to common stockholders rose to $403.9 million from $315.8 million. Sequentially, revenue grew from $1.55 billion and net income from $370.5 million. GAAP results also reflected items that can vary significantly between periods: the company recorded $111.6 million of real estate impairments and $113.9 million of gains on property sales during the quarter.

Investment deployment

Volume and returns: Quarterly investment volume was $2.6 billion, with a $2.2 billion pro-rata share and a 6.8% initial weighted average cash yield. Management said financing activity produced an approximately 170-basis-point leverage-neutral spread.
Changing mix: Europe accounted for $940 million, or 42% of pro-rata investment volume, at a 7.1% initial cash yield. More than 85% of European real estate investment volume was industrial.
Industrial and credit: Industrial was the largest investment category at approximately $1.15 billion and a 6.5% initial cash yield. Credit investments totaled about $250 million; management described these as a complement to, not a replacement for, the traditional property business.

Private capital and funding

The KKR transaction brought €528 million into a euro-denominated joint venture in exchange for a 49% interest in 54 stabilized European net-lease properties across four countries; Realty Income retained 51% and manages the portfolio. Management described a 6.4% target IRR mechanism associated with its ability to call KKR’s interest between years 10 and 17. The transaction adds private capital and recurring management-fee potential while broadening the company’s funding mix. Separately, Realty Income issued $1.0 billion of 3.750% convertible notes due 2031 and €600 million of 3.625% notes due 2032. It reported $5.4 billion of available liquidity and 5.4x net debt to annualized pro forma Adjusted EBITDAre; including unsettled ATM forward equity, leverage was 5.2x.

Portfolio and recycling

Leasing: Portfolio occupancy was 98.8%, unchanged from June and up from 98.7% a year earlier. Same-store rental revenue grew 1.1% year over year to $1.162 billion.
Re-leasing: The quarter’s 103.5% rent recapture rate reflected $67.6 million of new annualized base rent compared with $65.3 million previously. The portfolio comprised 15,536 properties with an approximately 8.5-year weighted average remaining lease term.
Dispositions: Realty Income sold 182 properties for $526.6 million in net proceeds and recorded $113.9 million in gains. Year-to-date proceeds reached $875.2 million, compared with $424.2 million in the first nine months of 2025.

2026 outlook and dividend

The company raised its 2026 AFFO-per-share range to $4.45–$4.46 from $4.44–$4.45, while keeping its $10.0 billion investment-volume target and 1.1%–1.3% same-store rent-growth range. It now expects occupancy above 98.5%, versus an earlier approximate 98.5%, and lowered expected credit losses to approximately 30 basis points from 40 basis points, according to management’s call remarks. The annualized dividend was $3.258 per share after the September increase; quarterly dividends paid were $0.813 per share, equal to 72.6% of quarterly AFFO per share.