Realty Income rozšiřuje byznys do datových center a s partnery chystá počáteční investice přes 6 miliard USD do hyperscale projektů. Firma už dříve koupila 80% podíl ve dvou centrech ve Virginii.
Realty Income's (O -0.51%) developed a stellar reputation as a brick-and-mortar retailer REIT, defying the headwinds that are supposed to be destroying the retail industry. In fact, this landlord has raised its annual per-share dividend for nearly 29 consecutive years. And by no small amount either. Since listing itself on the NYSE in 1994, it's upped its dividend by an average of 4.1% per year.
Shareholders may see this growth pace perk up for the foreseeable future as this retail-focused real estate investment trust eases its way into the data center business. Here's what you need to know.
Yes, that Realty Income -- the retailer REIT It's true! The landlord to some of the retail industry's most resilient names, like Dollar General, Walmart, and Home Depot, is getting into the data center industry.
OK, it technically entered this business back in late 2023 by acquiring an 80% interest in two data centers then under construction in Northern Virginia that would ultimately be steered by AI infrastructure outfit Digital Realty.
That $800 million commitment was trumped in a big way just last month, however, when Realty Income formed a joint venture with Cloud Capital and an unnamed institutional investor. Together, they're initially committing over $6 billion to hyperscale data centers, leaving the door open to greater investment in the future.
Image source: Getty Images.
At first blush, it appears this REIT is moving into waters beyond its core proficiency. That's not quite the case. The business model here is essentially the same as its brick-and-mortar retailing operation -- Realty Income builds or buys a structure, and then converts it into a space that generates rental income.
In this case, the "renters" are simply companies leasing cloud-based access to computing servers. As Realty Income's CEO, Sumit Roy, commented on the agreement, the "announcement affirms the strength of our business model and its ability to translate across sectors, including digital infrastructure."
Accelerated income growth ahead One data center deal isn't necessarily game-changing for Realty Income. For that matter, neither is a small handful. For perspective on the amount of capital this real estate investment trust is actually putting into the business, the current net value of the company's real estate portfolio stands at $54 billion, which turned over $5.7 billion in revenue last year into nearly $4 billion worth of operating funds to pass along to shareholders, plus an additional $1.0 billion in net income. Its current data center efforts aren't likely to move the needle much just yet.
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Be patient, though. It's unlikely that Realty Income will back away from the hyperscale data center business now that it's proven it's comfortable with it. If anything, it's more likely than not to continue adding these projects to its portfolio. It matters simply because, according to Precedence Research, the worldwide data center market is poised to grow at an average yearly pace of nearly 27% through 2035. There's money to be made here.
Just don't lose perspective on this. While the opportunity for revenue growth is significant, hyperscale data centers also require a great deal of up-front capital and a somewhat slow payback period. It's still more of an income growth investment than a typical growth holding.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust, Home Depot, Realty Income, and Walmart. The Motley Fool has a disclosure policy.
Realty Income letos vzrostla o více než 16,5 % a s dividendou přinesla celkový výnos přes 19,5 %, zatímco S&P 500 je letos asi +9 %. Tahounem je měsíční dividenda s výnosem kolem 4,9 % a budování soukromého kapitálového ekosystému.
The S&P 500 is up about 9% year-to-date, putting it on track for another year of double-digit gains. That strong return is a high hurdle for a dividend-paying stock to overcome. However, that's just what Realty Income (O 0.81%) has done this year. The real estate investment trust (REIT) has gained over 16.5%, while its dividend has driven the total return to more than 19.5%.
Here's what's driving this unstoppable dividend's stock's market-crushing total returns in 2026.
Image source: Getty Images.
135 times (and counting) Realty Income's main draw is its dividend income. The REIT pays a monthly dividend that currently yields about 4.9% (roughly four times the S&P 500's 1% dividend yield). That high-yielding dividend has proven unstoppable over the years. Realty Income has declared 673 consecutive monthly dividends throughout its history. The REIT has raised its payout 135 times since its public market listing in 1994, including for the past 115 consecutive quarters, growing it at a 4.1% compound annual rate.
The primary factor driving dividend growth is new investments. Realty Income buys billions of dollars in income-producing real estate each year, which grows its adjusted funds from operations (AFFO) per share. The REIT currently expects to invest about $9.5 billion this year (up from $6.2 billion last year), which should grow its AFFO to $4.41-$4.44 per share, a 3% to 3.7% increase from last year.
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Securing partners to enhance its growth Realty Income's unstoppable dividend isn't the main reason it's crushing the S&P 500 this year. The primary catalyst is its progress in building a private capital ecosystem. This strategy will enable it to accelerate AFFO per share growth with capital-light revenue, reduce its reliance on the public equity market, and expand its investment opportunities. This platform currently consists of four vehicles:
U.S. Core Plus Fund: The REIT launched a private capital fund to generate fee-based income, enhancing returns and increasing the amount of capital it can invest. GIC strategic partnership: Realty Income formed a strategic partnership with GIC. They will form a joint venture (JV) focused on high-quality build-to-suit logistics development projects. GIC also became a cornerstone investor in the U.S. Core Plus Fund. Meanwhile, Realty Income agreed to a construction financing and take-out purchase agreement of a $200 million build-to-suit industrial portfolio in Mexico (its first investment in the country). Apollo strategic partnership: Apollo-managed funds will invest $1 billion into a JV that will own a diversified portfolio of single-tenant retail properties. Cloud Capital joint venture: Realty Income is forming a JV with Cloud Capital to invest in hyperscale data centers. These partnerships provide Realty Income with additional capital to invest in real estate and new investment opportunities. These dual drivers position the REIT to grow AFFO per share faster going forward, which should support continued dividend increases.
Executing its acceleration strategy Realty Income has made significant progress in building a private capital ecosystem. This strategy should drive faster growth going forward. That's driving up the REIT's share price this year. Despite that higher valuation, it's still a very attractive income investment, given its high yield and unstoppable dividend growth.
Matt DiLallo has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.
Inflace v USA v červnu zpomalila na 3,5 % meziročně a trh snížil sázky na další zvýšení sazeb Fedu. To je pro Realty Income, citlivou na úroky, důležitá úleva.
Tuesday brought the kind of inflation report investors have been waiting on all year. The Consumer Price Index (CPI) rose 3.5% year over year in June, down sharply from 4.2% in May and below economists' expectations, as gasoline prices posted their biggest monthly drop in years. Core inflation, which excludes food and energy, cooled to 2.6% from 2.9%.
For most stocks, that's background news. For Realty Income (O +3.94%), one of the market's most rate-sensitive dividend stocks, it's closer to the main event. After a year in which hot inflation kept the threat of Federal Reserve rate hikes alive, the pressure on this real estate investment trust (REIT) may finally be easing.
Here's why I'd consider buying the stock now.
Image source: Getty Images.
A 5% yield, paid monthly Realty Income calls itself The Monthly Dividend Company, and the numbers back the branding. The company has declared more than 670 consecutive monthly dividends, and it has increased its payout for over 31 consecutive years, making it a member of the S&P 500 Dividend Aristocrats® index (the term Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC).
In March, the company announced its 114th consecutive quarterly dividend increase, and the monthly dividends it paid during the first quarter were up 1.8% year over year. At about $63 per share, the stock's annualized dividend of about $3.25 works out to a yield just over 5.1%.
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The business behind the payout is deliberately boring. Realty Income owns 15,571 properties leased to 1,786 clients across 92 industries, mostly under long-term net leases (agreements in which the tenant covers taxes, insurance, and maintenance). The weighted average lease has about 8.7 years remaining. And portfolio occupancy held steady at 98.9% at the end of the first quarter.
The dividend is well covered, too. Realty Income paid out about 72% of its first-quarter adjusted funds from operations (AFFO), a common measure of a REIT's cash earnings.
AFFO per share rose 6.6% year over year in the first quarter to $1.13, and management raised its full-year guidance to a range of $4.41 to $4.44 -- annual growth of 3% to 3.7%, with the first quarter running ahead of that pace. It's a modest trajectory. It's also exactly what income investors are here for.
Why Tuesday's report matters so much here Realty Income grows by raising money and buying more properties, pocketing the difference between its cost of capital and the rental yields on what it buys. In the first quarter, it invested $2.8 billion, with its $2.6 billion pro-rata share carrying an initial weighted average cash yield of 7.1%. Management also lifted its full-year investment guidance to $9.5 billion from $8 billion.
Interest rates sit on both sides of that equation. When rates rise, Realty Income's borrowing costs climb, and the spread on new deals narrows. Rising rates also give income investors a risk-free alternative, which tends to pull REIT share prices down until their yields look competitive again. Falling rate pressure eases both problems at once.
That's what makes June's inflation data such a welcome development. With inflation running hot this spring, traders had been pricing in meaningful odds that the Fed would raise rates again. After Tuesday's report, those bets faded fast. Market pricing now points to an 86% chance the central bank holds steady at its July 29 meeting, according to CME FedWatch data.
Of course, one good inflation print doesn't settle anything. Inflation at 3.5% remains well above the Fed's 2% target, and June's improvement leaned heavily on falling gas prices, which can reverse. If inflation reaccelerates, the rate threat comes right back, and Realty Income's stock would likely feel it.
There are business risks, too. Realty Income's tenants are heavily concentrated in retail, where struggling chains can hand back keys. And AFFO growth of 3% to 4% a year will never make this a growth stock.
But the stock's valuation may already reflect those limitations. At about $63 per share as of this writing, the stock trades at roughly 14 times the midpoint of this year's expected AFFO, and about 7% below its 52-week high.
So that's the case. An annual yield above 5% from a portfolio that stays nearly full in good markets and bad, with three decades of dividend increases behind it -- and the rate pressure that has weighed on the stock is finally easing. Overall, I'd consider buying Realty Income here and let the monthly checks do the compounding.
Realty Income navýšila své nezajištěné revolvingové úvěrové linky na 5,5 miliardy USD z 4,0 miliardy USD. Současně rozšířila globální programy komerčních papírů na 5,5 miliardy USD z 3,0 miliardy USD.
, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O) (the "Company"), The Monthly Dividend Company®, announced that it has closed on the recast and expansion of its $5.5 billion multicurrency unsecured revolving credit facilities, upsized from the prior $4.0 billion capacity. In addition, the Company also announced an expanded combined capacity of $5.5 billion for its global commercial paper programs, upsized from the prior $3.0 billion combined capacity.
"Access to efficiently priced capital has long been a competitive advantage for Realty Income, and the increased borrowing capacity enhances our financial flexibility to execute on our strategy and pursue accretive growth opportunities. We are grateful for the continued support of our lending partners," said Jonathan Pong, Realty Income's Chief Financial Officer and Treasurer.
$5.5 Billion Revolving Credit Facilities
Realty Income's revolving credit facilities provide for updated capacity of $5.5 billion with an accordion expansion feature up to $6.5 billion, which is subject to obtaining lender commitments. The revolving credit facilities are bifurcated into two $2.75 billion tranches, which initially mature on April 29, 2029 and July 10, 2030 respectively, before giving effect to two six-month extension options for each facility. Pursuant to the terms of the revolving credit facilities, the Company's current A3 / A- credit ratings provide for a borrowing rate of 67.5 basis points over SOFR for U.S. Dollar borrowings, with a facility commitment fee of 12.5 basis points, for all-in drawn pricing of 80 basis points over SOFR, a reduction of 5.0 basis points from the prior revolving credit facilities.
A total of 26 lenders are participating in the Realty Income revolving credit facilities, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc., Mizuho Bank, Ltd., and TD Bank, N.A. are serving as Joint Bookrunners.
$5.5 Billion Commercial Paper Programs
In conjunction with the closing of the updated revolving credit facilities, Realty Income also expanded its global unsecured commercial paper programs to a total combined capacity of $5.5 billion, including an upsized $2.75 billion U.S. commercial paper program and $2.75 billion European commercial paper program. The notes will be sold under customary terms in the United States and European commercial paper note markets, respectively, and will rank pari passu with all of the Company's other unsecured senior indebtedness, including the Company's outstanding senior notes and borrowings under the Company's multicurrency revolving credit facilities. The Company expects to use its $5.5 billion multicurrency revolving credit facilities as a liquidity backstop for the repayment of notes issued under the programs.
The notes to be offered under the U.S. and European commercial paper programs have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the Company's commercial paper programs.
About Realty Income
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 March 31, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the 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 673 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 31 consecutive years. Additional information about the Company can be found at www.realtyincome.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimate," "anticipate," "assume," "expect," "believe," "intend," "continue," "should," "may," "likely," "plan," "seek," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business, strategy; liquidity and cash flows; plans, and the intentions of management; our platform; financing activities, including issuances under our commercial paper programs; and growth strategies. Forward-looking statements are subject to risks, uncertainties, and assumptions about us which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the threat and outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships, and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Past operating results and performance are provided for informational purposes and are not a guarantee of future results. There can be no assurance that historical trends will continue. Actual plans and results may differ materially from what is expressed or forecasted in this press release and forecasts made in the forward-looking statements discussed in this press release might not materialize. We do not undertake any obligation to update forward-looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.
Realty Income vidí Evropu jako trh za 8,5 bilionu USD a v prvním čtvrtletí roku 2026 do ní vložila téměř polovinu svých investic. Evropské nákupy přinesly počáteční hotovostní výnos kolem 7 %.
Key Takeaways Realty Income sees Europe as an $8.5T commercial real estate opportunity supporting long-term growth.Europe accounted for nearly half of first-quarter 2026 investments with a 7% initial cash yield.O benefits from euro-denominated financing costs that remain below acquisition yields, supporting spreads. Realty Income’s (O - Free Report) expansion across Europe is becoming an important long-term growth driver, supported by a vast addressable market, attractive acquisition yields and greater geographic diversification.
As of March 31, 2026, the company owned or held interests in 15,571 properties across the United States, the United Kingdom and eight additional European countries, with Europe contributing roughly 20% of the annualized base rent. Management estimates the region represents an $8.5 trillion commercial real estate opportunity, the largest part of its roughly $14 trillion addressable market.
Realty Income invested approximately $1.29 billion in Europe during the first quarter of 2026, nearly matching its U.S. and other market investments of $1.33 billion. European investments generated an initial weighted-average cash yield of about 7% compared with 7.3% in the United States, highlighting the region's ability to deliver competitive returns while accounting for nearly half of quarterly investment activity.
Europe also provides access to a large pipeline of corporate-owned real estate and sale-leaseback opportunities, enabling Realty Income to acquire income-producing assets while helping businesses unlock capital. The company's broad international footprint further diversifies rental income across economies, interest-rate cycles and property markets, supporting stable cash flows.
Realty Income is also expanding beyond traditional acquisitions through development projects, loans, structured investments and joint ventures, creating additional avenues for growth and higher returns. Euro-denominated financing costs remain below acquisition yields, supporting investment spreads. However, currency fluctuations, varying legal frameworks and competition for premium assets remain key challenges.
How Are Realty Income’s Competitors Expanding?Simon Property Group (SPG - Free Report) owns 22.2% of Klépierre, which operates more than 130 shopping centers across 13 European countries. Simon's October 2025 acquisition of the remaining 12% stake in TRG simplified ownership and strengthened its balance sheet. Recent acquisitions, including Phillips Place, Brickell City Centre and outlet assets in Italy, support its focus on high-quality, brand-accretive properties.
Federal Realty Investment Trust (FRT - Free Report) is expanding through acquisitions, redevelopment and joint ventures. FRT targets shopping centers in affluent, supply-constrained U.S. markets. FRT recently acquired properties in Maryland, Kansas, Nebraska and California.
Realty Income’s Price Performance, Valuation and EstimatesShares of Realty Income have fallen 0.8% over the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month Price/Earnings (P/E), Realty Income is currently trading at 13.98X, which is at a discount to the industry average of 16.9X.
Image Source: Zacks Investment Research
Realty Income’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised marginally upward over the past month. The consensus estimate for 2026 calls for 4% growth year over year.
Image Source: Zacks Investment Research
Currently, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced that it has declared its 673rd consecutive common stock monthly dividend. The dividend amount of $0.2710 per share, representing an annualized amount of $3.252 per share, is payable on August 14, 2026 to stockholders of record as of July 31, 2026.
About Realty Income
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 March 31, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the 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 673 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 31 consecutive years. Additional information about the company can be found at www.realtyincome.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimate," "anticipate," "assume," "expect," "believe," "intend," "continue," "should," "may," "likely," "plan," "seek," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business, strategy, plans, and the intentions of management including dividends and the amount, timing and payment thereof. Forward-looking statements are subject to risks, uncertainties, and assumptions about us which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures, including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the threat and outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; and the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Past operating results and performance are provided for informational purposes and are not a guarantee of future results. There can be no assurance that historical trends will continue. Actual plans and results may differ materially from what is expressed or forecasted in this press release and forecasts made in the forward-looking statements discussed in this press release may not materialize. We do not undertake any obligation to update forward-looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.
Realty Income vyplatila další měsíční dividendu ve výši 27 centů na akcii a prodloužila sérii na 670 po sobě jdoucích měsíčních výplat. Firma zároveň drží 99% obsazenost a zvýšila celoroční investiční výhled na 9,5 miliardy USD.
Realty Income (NYSE:O | O Price Prediction) just paid investors again. The monthly check dividend landed on schedule, the streak extended and the market continued treating shares like a melting ice cube. That disconnect is the opportunity.
Realty Income declared its latest monthly dividend of 27 cents per share with an ex-dividend date of June 30 and a payment date of July 15. That is the 670th consecutive monthly dividend and follows the 114th consecutive quarterly increase. The stock currently yields roughly 5%. The story the market is telling with that yield (retail REITs are toxic, net lease is broken, e-commerce wins) is the wrong story.
The 5% Yield Is a Verdict Income investors get conditioned to celebrate fat yields. They should not. A high yield is the market discounting the future cash stream, and for most of the past two years that discount has been aimed squarely at retail-anchored landlords. The 10-Year Treasury currently sits at 4%, leaving Realty Income’s payout at roughly a 1% spread over the risk-free rate.
That is a tight cushion for a company whose tenants the market apparently believes are one recession away from going dark. But the operating data does not support that thesis.
What the Operating Data Actually Says Q1 2026 AFFO per share came in at $1.13, up 7% year over year. Portfolio occupancy stood at 99%. The lease recapture rate hit 103%, meaning the company re-leased space at higher rents than it was getting before. Realty Income invested $2.8 billion in the quarter at a 7% initial cash yield, and management raised full-year investment guidance to $9.5 billion from $8.0 billion.
Those are the operating metrics of a healthy, productive asset class. The macro backdrop agrees: U.S. retail sales hit $763.7 billion in May 2026, the highest reading of the trailing 12 months and the 92nd percentile of the period. Consumers are spending. Realty Income’s tenants — including Dollar General, 7-Eleven, Walgreens and Wawa — sit on the receiving end of that spending.
The Payout Math the Doomsayers Ignore Detractors point to a P/E ratio of 52 and argue the dividend is uncovered. That is a misread of how REITs work. The relevant denominator is AFFO, not GAAP EPS. 2026 AFFO guidance of $4.41 to $4.44 against an annualized dividend of $3.246 works out to a payout ratio in the low 70s. That is comfortable. The forward P/E of 40 also accounts for the depreciation distortion that always inflates REIT trailing earnings multiples.
Net debt to annualized pro forma adjusted EBITDAre fell to 5.2x from 5.4x. Credit ratings sit at A3 from Moody’s and A- from S&P. The company just priced $800 million of 4.750% notes due 2033 and a €600 million Eurobond at 4%. Toxic borrowers do not get that paper at those prices.
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The Market Is Already Quietly Reversing While the “retail REITs are dead” narrative persists in headlines, the stock is voting differently. Realty Income is up 17% over the past year and 14% year to date. That outpaces the Real Estate Select Sector SPDR ETF (NYSEARCA:XLRE), which gained 13% over the same one-year window. Shares closed at $63.04 on June 29, 2026, after a 4% one-week move.
News sentiment is also turning. Of 50 recent articles, 48% scored somewhat-bullish and only 2% somewhat-bearish. Wall Street currently holds three Strong Buy ratings, five Buy ratings and 15 Hold ratings alongside an average price target of $67.90.
The Dividend Scorecard Grading this dividend the way an income investor should:
Yield: ~5%, with a 1% spread over the 10-Year Treasury. Adequate. Coverage: AFFO payout ratio in the low 70s against $4.41 to $4.44 guided AFFO. Strong. Growth streak: 114 consecutive quarterly increases and 670 consecutive monthly payments. Best in class. Growth rate: Monthly payout rose from 26 cents in June 2025 to 27 cents in June 2026. Modest but positive. Balance sheet: 5.2x net debt to EBITDAre, A-rated credit. Strong. Composite grade: A-
The only deduction is the modest dividend growth rate, which reflects deliberate capital allocation discipline rather than weakness.
What CEO Sumit Roy Is Actually Building CEO Sumit Roy used the Q1 call to reframe the business as a private-capital aggregator with a public dividend wrapper. The Apollo partnership put $1.0 billion of insurance capital into 492 retail properties. The GIC partnership added construction financing capacity. The U.S. Core Plus fund closed a $1.7 billion cornerstone capital raise.
Roy’s own framing: “Several years ago, we identified a potential concentration risk in relying primarily on public equity markets, where pricing, at times, can become disconnected from underlying operating performance and this discrepancy persists for prolonged periods.” Translation: management knows the stock is mispriced and is building around the public market rather than waiting for it to catch up.
What to Watch Next The next dividend declaration will likely tick higher again. The next earnings report will test whether the $9.5 billion investment pace is holding and whether the lease recapture rate stays above 100%. If 10-Year Treasury yields keep drifting lower from the recent 5% May peak, the discount the market applied to retail REITs starts to look even more anachronistic. The market called this dividend stream toxic. The check that just cleared says otherwise.
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Realty Income vytvořila s Cloud Capital a globálním institucionálním investorem společný podnik pro hyperscale datová centra. Firma plánuje investovat až 1,4 miliardy USD za 45% podíl v portfoliu tří aktiv.
- Realty Income, Global Institutional Investor, and Cloud Capital Form JV to Invest in Hyperscale Data Centers
- Realty Income Expects to Invest up to $1.4 Billion for 45% Equity Stake in a Three-Asset Northern Virginia Portfolio
- JV to Acquire One Stabilized Asset in the Third Quarter of 2026 and Two Assets Under Development at a Future Date
- 100% Leased or Pre-Leased Portfolio to Investment‑Grade Hyperscale Tenants Under Long‑Duration Leases
, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced a strategic joint venture with Cloud Capital and its affiliates ("Cloud Capital") and a global institutional investor (the "Global Investor"). The joint venture intends to invest in a diversified portfolio of stabilized hyperscale assets leased to investment-grade tenants under long-duration, triple-net leases. The joint venture has committed to acquire three data center assets which are in strategically located markets and leased to hyperscale tenants (the "Portfolio"). The programmatic nature of the joint venture will provide a platform for Realty Income to take advantage of future investments in qualifying data center developments and acquisitions within the United States and Europe.
"Today's announcement affirms the strength of our business model and its ability to translate across sectors, including digital infrastructure," said Sumit Roy, President and Chief Executive Officer of Realty Income. "We are pleased to advance a scaled digital infrastructure platform while deepening our programmatic relationship with Cloud Capital, which is vertically integrated with CloudHQ, a best-in-class developer and operator. The combination of high-quality data center assets leased to investment-grade tenants, long-duration triple-net leases, and an attractive return profile reflects our disciplined approach to capital allocation and value creation."
"Hyperscale customers need infrastructure delivered at unprecedented scale and pace," said Hossein Fateh, Founder and Chief Executive Officer of Cloud Capital and CloudHQ. "Partnering with Realty Income and the Global Investor brings together the capital and the operating expertise to meet that demand and to extend our leadership in the sector."
Realty Income expects to invest up to $1.4 billion that will be funded over time, with initial investments of approximately $700 million expected to be funded between the second and third quarter of 2026. As part of the transaction, Realty Income will acquire an initial 45% interest in the first Portfolio asset, a stabilized hyperscale data center asset located in Northern Virginia's "data center alley" that is fully leased to an investment-grade hyperscale tenant under a long-term triple-net lease. Realty Income has also agreed to acquire similar interests in two assets under development upon completion in the coming years, subject to certain conditions being satisfied. CloudHQ, a leading private global data center company, will provide property management and development management services to the Portfolio. Cloud Capital will hold a minority investment in the Portfolio.
The transaction is expected to generate an attractive cash-on-cash yield consistent with Realty Income's targets.
Transaction Highlights:
The assets in the Portfolio are in Northern Virginia's "data center alley," one of the world's largest and most important data center markets. The assets are underpinned by 15-year to 20-year triple‑net lease agreements with investment‑grade hyperscale tenants, featuring embedded annual rent escalators customary for these types of hyperscale data centers. The assets are expected to support the mega-trends of cloud computing and artificial intelligence, demonstrating the long-term strategic importance of the Portfolio. The joint venture is programmatic, allowing Realty Income to take advantage of future investments in qualifying data center developments and acquisitions within the United States and Europe. Moelis & Company LLC served as financial advisor and Latham & Watkins LLP served as legal counsel to Realty Income. Goldman Sachs & Co. LLC served as financial advisor and Jones Day served as legal counsel to Cloud Capital.
About Realty Income
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 March 31, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the 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 672 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 31 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.com/investors), press releases, SEC filings and public conference calls and webcasts.
About Cloud Capital
Cloud Capital is a leading global specialized investment management firm focused on acquiring, managing and operating high-quality data centers. Since 2020, Cloud Capital has acquired a portfolio of 30 data center assets worldwide valued at over $12 billion, employing a rigorous and disciplined underwriting process for both proprietary and off-market data center transactions and active hands-on asset management. Cloud Capital has offices in Washington, D.C., San Francisco, CA, and London.
For more information, please visit: www.cloudcapital.com
About CloudHQ
CloudHQ is a global data center company that partners with the world's largest technology companies to provide reliable and secure power and operating infrastructure. CloudHQ's state-of-the-art facilities and expert team ensure its clients have the support to drive their businesses forward at the speed they need. With a focus on flexibility, scalability, and customer service, CloudHQ is the partner of choice for leading technology firms around the world.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimate," "anticipate," "assume," "expect," "believe," "intend," "continue," "should," "may," "likely," "plan," "seek," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of the joint venture with Cloud Capital and the Global Investor; joint ventures, partnerships, and portfolio including management and ownership thereof; growth and capital strategies including our private capital business, investment pipeline and intentions to acquire or dispose of properties (including geographies, timing, partners, clients and terms); re-leases, re-development and speculative development of properties and expenditures related thereto; and macroeconomic and other business trends. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures, including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the threat and outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Past operating results and performance are provided for informational purposes and are not a guarantee of future results. There can be no assurance that historical trends will continue. Actual plans and results may differ materially from what is expressed or forecasted in this press release and expectations and forecasts made in the forward-looking statements discussed in this press release may not materialize. We do not undertake any obligation to update forward-looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.
Realty Income stanovila cenu emise seniorních nezajištěných dluhopisů v objemu 600 milionů EUR s kupónem 3,625 % a splatností v červenci 2032. Čistý výtěžek použije na obecné firemní účely.
, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced the pricing of a public offering of €600 million of 3.625% senior unsecured notes due July 30, 2032 (the "Notes"). The public offering price for the Notes was 99.518% of the principal amount for an effective annual yield to maturity of 3.716%.
The net proceeds from this offering will be used for general corporate purposes, which may include, among other things, the repayment or repurchase of our indebtedness, including borrowings under our revolving credit facilities and commercial paper programs, foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in our portfolio.
This offering is expected to close on July 7, 2026, subject to the satisfaction of customary closing conditions.
The active joint book-running managers for the offering are Barclays, BNP PARIBAS, RBC Capital Markets, Santander, and Wells Fargo Securities.
A copy of the prospectus supplement and prospectus, when available, related to this offering may be obtained by contacting: Barclays Bank PLC by telephone at 1-888-603-5847, BNP PARIBAS by telephone at +44 (0)20-7595-8222, RBC Europe Limited by telephone at +44 (0)20-7029-7031, Banco Santander, S.A. by telephone at +34-91-257-2029, and Wells Fargo Securities International Limited by telephone at 1-800-645-3751.
These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act of 1933, as amended. These securities are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or other jurisdiction where, or to any person to whom, the offer, solicitation, or sale of these securities would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Realty Income
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 March 31, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the 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 672 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 31 consecutive years. Additional information about the company can be found at www.realtyincome.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimate," "anticipate," "assume," "expect," "believe," "intend," "continue," "should," "may," "likely," "plan," "seek," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business, strategy, plans, and the intentions of management; joint ventures, partnerships and portfolio including management thereof; our platform; growth and capital strategies; and dividends, including the amount, timing and payments of dividends. Forward-looking statements are subject to risks, uncertainties, and assumptions about us which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the threat and outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships, and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Past operating results and performance are provided for informational purposes and are not a guarantee of future results. There can be no assurance that historical trends will continue. Actual plans and results may differ materially from what is expressed or forecasted in this press release and forecasts made in the forward-looking statements discussed in this press release might not materialize. We do not undertake any obligation to update forward-looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.
