Track market-moving stories before they get noisy

Realty Income has raised its dividend more than 135 times, but GAAP earnings keep missing estimates and the yield spread over Treasuries has nearly vanished. Understanding what actually funds those monthly checks changes how the streak looks.

Realty Income (NYSE:O) keeps adding to one of the longest dividend-raise records in real estate. Realty Income declared its 135th increase in its monthly common stock dividend. A company release dated September 8, 2026, is titled “136th Common Stock Monthly Dividend Increase Declared by Realty Income,” so the count has already moved past that figure. The streak rests on AFFO coverage, which measures how much of each dollar of adjusted funds from operations goes out as dividends.

AFFO Coverage Shows What GAAP Earnings Hide On GAAP numbers, the payout looks stretched. Second-quarter EPS of $0.37 missed expectations of $0.42, weighed down by a $54.2M impairment. Impairments and depreciation don’t cost any cash, so REITs fund dividends from AFFO. In Q2, AFFO per share was $1.09 and monthly dividends paid totaled $0.8115, about 74% of AFFO. Measured against 2026 AFFO guidance of $4.44 to $4.45, the forward annualized dividend of $3.258 works out to roughly 73%. Realty Income keeps the rest of that cash and puts it into new properties.

Tiny Raises, Relentless Rhythm Recent increases have come in steps of $0.0005. The monthly payout rose from $0.2695 in October 2025 to $0.2715 for the payment due November 13, 2026, a gain of about 0.74%. Over the same stretch, Q2 AFFO per share grew 3.8%. Cash flow is growing faster than the dividend, and that gap protects the streak. The record includes 676 straight monthly dividends, 115 straight quarterly increases, and more than 31 consecutive years of raises.

Rates and Tenants Could Slow the Raises Interest rates are the main pressure point. The 10-year Treasury yielded 5.15% on October 19. Realty Income’s yield of 5.48% is only about 0.33 percentage points higher. Leverage edged up to 5.4x from 5.2x, and non-investment-grade tenants still supply 65.7% of annualized base rent. On the positive side, occupancy stood at 98.8% and re-leased properties achieved 102.7% of prior rent. New debt issued this year has a 3.9% blended coupon, while new investments yield 7.3%. Public equity funded only 18% of investment volume year to date, versus a 47% average over the past three years.

What to Watch at the Q3 Report Signs of strength would be AFFO coverage holding in the low-to-mid 70% range, guidance remaining at or above $4.44 to $4.45, and credit losses remaining under the 40 basis points management has guided to. Warning signs would be leverage climbing beyond 5.4x or the gap between investment yields and borrowing costs narrowing while the 10-year stays above 5%. Shares are down 3.06% over the past year, suggesting investors are pricing in rate risk.

Verdict: The Streak Has Room to Run With about a quarter of AFFO left after dividends and AFFO growing roughly 4%, Realty Income can keep making small raises, so the streak is very likely to continue. Coverage backs it up.

Contact [email protected] for any questions or corrections.

For income-minded investors, higher dividend yields are obviously more attractive than lower-yielding dividend stocks. The size of the percentage yield is only half of the matter, however. Just as important to anyone planning on sticking with an income-generating holding for the long haul is how reliably its dividend holding is going to grow over time.

With that as the backdrop, there's one S&P 500 (^GSPC -0.60%) name that brings both to the table. It recently raised its dividend again, in fact, extending a streak that's now been in place for 29 years. That company is Realty Income (O -0.66%), which you can plug into here at a forward-looking dividend yield of 6%.

Realty Income is built to be resilient
You may be more familiar with Realty Income than you realize. It doesn't do any consumer-facing business under its own name. Rather, it's a landlord specifically to the brick-and-mortar retailing industry. The real estate investment trust -- or REIT -- boasts a portfolio of around 15,500 properties, and companies like Dollar General, Tractor Supply, Home Depot, and 7-Eleven are among its top tenants. Although the brick-and-mortar retail business as a whole may be facing headwinds, this REIT's occupancy rate, consistently above 98% (closer to 99%, actually), confirms it's serving the more resilient sliver of the industry.

Image source: Getty Images.

That's not the important detail to interested income investors, however. Far more compelling is the fact that in September, Realty Income raised its monthly -- yes, monthly -- dividend payment for the 116th quarter in a row. That's 29 consecutive years' worth of four quarterly dividend hikes.

And not pittance increases either. Although its more recent dividend growth has been somewhat stymied by a combination of higher interest rates and a lethargic economy, since these payments began back in 1995, they've grown at an inflation-beating yearly rate of 4.1%.

One of the best (at what it's meant to do)
Past performance is no guarantee of future results, of course. But past performance is a pretty good indication of what the future likely holds. That's particularly true when the key drivers of that historical growth are still in place. And that's certainly the case here.

That being said, to the extent retailing may remain on the defensive, Realty Income is also easing its way to the data center business. Like retailing, this industry's rent-based remote access to servers lends itself to the tax advantages that REITs enjoy. Namely, any rent-based profits that are passed along to investors in the form of dividends aren't first taxed at the corporate level. This ultimately means more of Realty Income's net earnings make their way into shareholders' pockets.

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Just bear in mind that while O shares can achieve some price appreciation, they don't consistently do so, as they're often impacted by ever-changing interest rate backdrops. This ticker should first and foremost be viewed as an income and income-growth holding, albeit one of the S&P 500's very best.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dollar General, Home Depot, Realty Income, and Tractor Supply. The Motley Fool recommends the following options: short October 2026 $35 calls on Tractor Supply. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today declared its 676th consecutive common stock monthly dividend. The dividend amount of $0.2715 per share, representing an annualized amount of $3.258 per share, is payable on November 13, 2026 to stockholders of record as of October 30, 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 June 30, 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 676 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," "will" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our activities, business, strategy, portfolio, platform, plans, intentions of management; and our dividends, including 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.

SOURCE Realty Income Corporation

Rising Treasury yields have pushed Realty Income near a 52-week low while peers sold off less, yet one analyst on Wall Street sees a dramatically different story unfolding for patient investors willing to bet against the rate panic.

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Realty Income (NYSE:O) trades at $53.35. Wall Street’s average price target is $66.39, which puts the stock about 24.4% below where analysts think it belongs.

Realty Income owns a large portfolio of single-tenant, net-lease properties and pays its dividend every month. It recently declared its 674th consecutive monthly dividend and its 136th monthly dividend increase. The most bullish call on the Street comes from Brent Dilts at UBS, who rates the stock Buy with a $74.00 target. From the current price, that implies about 38.7% upside, which stands out for a REIT whose shares are sitting near their 52-week low of $53.28.

Rising Treasury Yields Pushed Realty Income to a 52-Week Low The biggest driver was interest rates. The 10-year Treasury yield reached 5.27%, close to its one-year high of 5.31%. When risk-free bonds pay that much, a REIT yielding about 6% looks less attractive. Realty Income fell 12.46% over the past month and is down 5.61% over the past year.

Rates have been the whole story for income names here, which is why we put together a free guide on net-lease and other dividend payers built to hold up when yields spike, available here.

Second-quarter GAAP EPS of $0.37 missed the $0.4227 consensus, weighed down by a $54.2M real estate impairment. Net debt/EBITDAre rose to 5.4x from 5.2x. Revenue of $1.548B beat estimates, but the market focused on rising leverage and higher funding costs.

Hold-Heavy Coverage Still Points Well Above $53 Analysts focus on cash flow. Management raised 2026 AFFO guidance to $4.44-$4.45 and lifted its investment volume target to $10.0B from $9.5B. Second-quarter deals closed at a 7.3% initial cash yield. Occupancy held at 98.8%, and rent recapture came in at 102.7%.

The UBS case has three parts. Triple-net leases protect cash flow from rising operating costs. The ‘A’-grade balance sheet allows Realty Income borrow cheaply and expand into Europe, data centers and industrial assets. And steady AFFO growth should support total returns once rates settle down. The newer growth drivers include a $6B hyperscale data center JV and a euro-denominated joint venture with KKR (NYSE:KKR | KKR Price Prediction). On the earnings call, Sumit Roy, CEO at the time of the call, said “We feel great about the pipeline and about, you know, another strong second half of the year.”

Of the 24 analysts covering the stock, ratings break down as:

Strong Buy: 1 Buy: 6 Hold: 16 Strong Sell: 1 UBS keeps its Buy rating, but most of the Street sits on Hold. The next test is the third-quarter earnings report.

Net-Lease Peers Sold Off Together, but Realty Income Fell Hardest Rates pulled the entire group lower. Realty Income dropped the most among net-lease peers.

NNN REIT (NYSE:NNN) fell 10.73% to $39.84. Its target of $47.25 implies 18.6% upside.

Agree Realty (NYSE:ADC) lost 9.91% to $65.17. Its target of $82.89 implies 27.2% upside.

W. P. Carey (NYSE:WPC) fell 9.56% to $62.74. Its target of $78.14 implies 24.5% upside.

Agree has the largest consensus upside. Realty Income sits in the middle, with only the UBS target giving it a clear edge over peers.

Realty Income Trails the S&P 500 While Its Yield Climbs Near 6% The stock is down 1.55% so far this year, even as the S&P 500 is up 13.98%. Over the past year, Realty Income has lost 5.61%, while the index has gained 16.16%.

At $53.35, shares trade below both the 50-day moving average of $60.15 and the 200-day average of $61.78. The forward dividend of $3.258 works out to a yield of about 6.02%. The consensus target of $66.39 from 24 analysts implies 24.4% upside.

Realty Income’s Risk/Reward Hinges on Treasury Yields The bull case strengthens if Treasury yields level off below 5.3% and the company continues hitting AFFO guidance while investing near a 7% yield. That’s the path back to $66 and beyond. Things turn bearish if yields stay above 5.3%, as that contracts the spread between what Realty Income earns on new deals and what it pays to borrow. More impairments would add risk, especially since 65.7% of ABR comes from non-investment-grade tenants.

Near the 52-week low, the 6% monthly dividend provides steady income, and operating results don’t match the selloff. A return to $74 depends on rates turning.

Contact [email protected] for any questions or corrections.

Key Takeaways Realty Income sold 177 properties for $348.6 million in first-half 2026 net proceeds.Sales generated $73.9 million in gains, while investments reached about $5.3 billion.First-half investments had a 7.2% cash yield, with other investments reaching an 8.3% yield. Realty Income (O - Free Report) is increasingly using property dispositions as part of its broader capital-allocation strategy. In the first half of 2026, the company sold 177 properties for $348.6 million in net proceeds, up from $209.4 million in the comparable period a year earlier. The sales generated $73.9 million in gains, providing an additional source of capital alongside operating cash flow and external funding.

While disposition proceeds remain modest relative to Realty Income’s investment activity, they can support portfolio optimization. The company invested about $5.3 billion during the first half, meaning property sales funded only a fraction of its deployment. Still, selling vacant or less strategically attractive assets can free capital for potentially higher-return opportunities without relying entirely on debt or equity financing.

The reinvestment opportunity is particularly notable, given Realty Income’s current investment yields. First-half investments carried an initial weighted-average cash yield of 7.2%, while development investments generated about 7.5%. Other investments, including loans and preferred equity, offered an even higher 8.3% yield. This provides multiple avenues for redeploying proceeds from asset sales.

Capital recycling could help Realty Income improve its portfolio over time while supporting its $10 billion 2026 investment target. However, sales do not automatically create better returns. The company must ensure replacement investments offer attractive risk-adjusted returns after considering financing costs, transaction expenses and market conditions. With its large and diversified portfolio, disciplined recycling could complement acquisitions and reduce dependence on external capital.

How Are Realty Income’s Peers Faring?Agree Realty Corporation (ADC - Free Report) focuses on high-quality, net-leased retail properties, with emphasis on investment-grade tenants and necessity-based retailers. The company invested $502 million in the second quarter of 2026. AFFO per share rose 7.4% to $1.14, while it sold 14 properties for $30.3 million.

NNN REIT, Inc. (NNN - Free Report) owns a diversified portfolio of single-tenant retail properties under long-term net leases. The company regularly uses property sales to prune weaker assets, manage tenant exposure and recycle proceeds into new acquisitions. From 2006 through 2025, the company has sold 953 properties generating $2.5 billion in net proceeds.

Realty Income’s Price Performance, Valuation and EstimatesShares of Realty Income have dipped 14.2% 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 11.93X, which is at a discount to the industry average of 15.31X.

Image Source: Zacks Investment Research

Realty Income’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent over the past month. The consensus estimate calls for 3.3% 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.

Realty Income Corp. (O - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this real estate investment trust have returned -11.1% over the past month versus the Zacks S&P 500 composite's +1.4% change. The Zacks REIT and Equity Trust - Retail industry, to which Realty Income Corp. belongs, has lost 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Realty Income Corp. is expected to post earnings of $1.11 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $4.42 points to a change of +3.3% from the prior year. Over the last 30 days, this estimate has changed -0.2%.

For the next fiscal year, the consensus earnings estimate of $4.59 indicates a change of +3.7% from what Realty Income Corp. is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Realty Income Corp. is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Realty Income Corp., the consensus sales estimate for the current quarter of $1.58 billion indicates a year-over-year change of +7.6%. For the current and next fiscal years, $6.3 billion and $6.84 billion estimates indicate +9.6% and +8.4% changes, respectively.

Last Reported Results and Surprise HistoryRealty Income Corp. reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +9.7%. EPS of $0.37 for the same period compares with $1.05 a year ago.

Compared to the Zacks Consensus Estimate of $1.54 billion, the reported revenues represent a surprise of +0.69%. The EPS surprise was 0%.

Over the last four quarters, Realty Income Corp. surpassed consensus EPS estimates two times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Realty Income Corp. is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Realty Income Corp.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Realty Income has handed out monthly dividends for decades and built a global property empire spanning casinos, data centers, and European real estate, yet patient long-term holders still trail the S&P 500 by a stunning margin. Whether the next decade…

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A Strip-Mall Landlord Turned Global Property Giant Realty Income (NYSE:O) is a net lease REIT that owns single-tenant buildings where tenants pay most taxes, insurance, and maintenance. Rent and dividends come monthly, earning the nickname “The Monthly Dividend Company”.

A decade ago it was mostly a U.S. retail landlord. Mergers with VEREIT (2021) and Spirit Realty Capital (2024) expanded it to 15,542 properties across eight European countries plus Mexico. Industrial properties made up 65% of Q2 2026 new investment. It owns casino properties including Bellagio and announced a $6 billion hyperscale data center JV in 2026. Occupancy was 98.8%.

The monthly dividend grew from $0.202 in September 2016 to $0.2715 in September 2026, marking the company’s 115th consecutive quarterly dividend increase.

Dividends Turned a Price Loss Into a Gain All periods run from September month-end close to October 1, 2026 close, with reinvested dividends unless marked “price only.” S&P 500 figures include reinvested dividends.

1-Year Return

Initial Investment: $1,000 Current Value: $933.13 Total Return: -6.69% (price only: -11.94%) S&P 500 (same period): $1,159.18 (15.92%) 5-Year Return

Initial Investment: $1,000 Current Value: $1,103.92 Total Return: 10.39% (price only: -17.47%) Annualized Return: 2.00% S&P 500 (same period): $1,903.74 (90.37%) 10-Year Return

Initial Investment: $1,000 Current Value: $1,330.52 Total Return: 33.05% (price only: $799.79, or -20.02%) Annualized Return: 2.90% S&P 500 (same period): $4,138.75 (313.87%) Reinvested dividends added $530.73, turning a price loss into a gain. The stock fell from $78.41 in January 2020 to $38.00 intraday in March 2020, a 51.54% drop. Rising rates hurt further: the 10-year Treasury yield rose from 1.52% at end-2021 to 5.29% by September 30, 2026. Shares fell 35.96% from July 2022 to October 2023, then lost another 12.32% in the past month.

I’m Waiting for Treasury Yields to Crack The case for Realty Income improves if long-term rates have topped out and weakens if the 10-year Treasury yield remains above 5%.

The bull case: The stock yields 5.77% and the company carries an “A” rating from Fitch. Management raised 2026 adjusted funds from operations (AFFO, a REIT cash-earnings measure) guidance to $4.44 to $4.45 per share and investment guidance to $10.0B. Its private capital funds also reduce how often it has to sell new shares to fund deals.

The bear case: AFFO growth is running at about 4%. Tenants without investment-grade credit account for 65.7% of base rent, and the watch list remains in the high 5% range. Treasuries now pay close to the stock’s yield, with no credit risk.

Can the next decade match the last? Possibly, but that means low-to-mid single-digit total returns depending mostly on dividends, still trailing the S&P 500. Falling Treasury yields are the key signal to watch.

Contact [email protected] for any questions or corrections.

Key Takeaways Realty Income formed a euro-denominated KKR joint venture to expand in Europe beyond public equity.Europe made up about 20% of Realty Income's annualized base rent and over 30% of first-half investments.Realty Income invested $396.8 million in Europe in Q2 at a 7% initial weighted average cash yield. Realty Income’s (O - Free Report) recent European move is less about buying property and more about changing how it funds growth. In September, the REIT agreed with KKR to establish a euro-denominated joint venture, extending its private-capital strategy into Europe. KKR is investing €528 million for a 49% stake in a stabilized portfolio contributed by Realty Income. This gives Realty Income another way to expand without relying only on public equity.

Europe is a meaningful part of Realty Income’s portfolio. By June 2026, the region represented about 20% of annualized base rent, with 671 properties, roughly $1 billion of annualized rent and about $18 billion of gross asset value. Realty Income has invested more than $17 billion there since entering in 2019.

The financing backdrop helps explain the focus. Realty Income issued €600 million of 3.625% senior unsecured notes in July at a 3.716% effective yield. Management has said Europe offers lower borrowing costs and less competition than the United States, which can support investment spreads when acquisition pricing remains disciplined.

Recent deployment shows the region is generating deals. Realty Income invested $396.8 million in Europe during the second quarter at a 7% initial weighted average cash yield, taking first-half European volume to $1.68 billion. This represented more than 30% of the company’s $5.34 billion of total investment activity through June.

However, there are limits to the opportunity. Management said international clients had been cautious earlier in 2026, while institutional capital has been pushing down cap rates in parts of the U.K. Still, international re-leasing produced a 112.9% rent recapture rate in the second quarter, giving Realty Income a source of growth beyond acquisitions.

Realty Income’s Peers Expand Across the United States & EuropeW. P. Carey Inc. (WPC - Free Report) continues to balance investment between the United States and Europe and owned 1,748 net-lease properties as of June 30. W. P. Carey also raised 2026 investment guidance to $1.7-$2.1 billion during the second-quarter earnings call, supporting continued deployment across both regions overall. W. P. Carey had completed around $1.4 billion of investment volume through mid-September, with clear visibility into more than $1.9 billion for the full year.

Global Net Lease Inc. (GNL - Free Report) has meaningful European exposure, with 26% of annualized straight-line rent coming from Europe as of June 30, 2026. Global Net Lease completed its $535 million Modiv Industrial acquisition in August, lifting industrial exposure to about 50%. Global Net Lease is also reducing office exposure through ongoing asset sales.

O’s Price Performance, Valuation and EstimatesShares of Realty Income have declined 9.9% over the past six months, underperforming the industry and lagging the S&P 500 composite. 

Image Source: Zacks Investment Research

From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 12.13, below the industry as well as its one-year median of 13.72. It carries a Value Score of D.

Image Source: Zacks Investment Research

Over the past month, while estimates for 2026 FFO per share have been revised marginally downward, estimates for 2027 have been tweaked slightly upward.

Image Source: Zacks Investment Research

QRG Capital Management Inc. increased its stake in shares of Realty Income Corporation (NYSE:O – Free Report) by 12.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 84,300 shares of the real estate investment trust’s stock after buying an additional 9,518 shares during the quarter. QRG Capital Management Inc.’s holdings in Realty Income were worth $5,223,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Realty Income in the second quarter valued at approximately $6,997,219,000. State Street Corp boosted its holdings in Realty Income by 3.4% in the 2nd quarter. State Street Corp now owns 65,929,425 shares of the real estate investment trust’s stock worth $4,102,484,000 after buying an additional 2,166,180 shares during the period. Geode Capital Management LLC grew its holdings in Realty Income by 2.8% during the 4th quarter. Geode Capital Management LLC now owns 29,206,196 shares of the real estate investment trust’s stock valued at $1,655,991,000 after buying an additional 793,100 shares in the last quarter. Bank of America Corp DE grew its stake in Realty Income by 10.3% during the second quarter. Bank of America Corp DE now owns 19,117,994 shares of the real estate investment trust’s stock valued at $1,184,551,000 after acquiring an additional 1,785,859 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in shares of Realty Income by 1.2% in the first quarter. Dimensional Fund Advisors LP now owns 13,018,219 shares of the real estate investment trust’s stock worth $796,457,000 after buying an additional 154,581 shares in the last quarter. 70.81% of the stock is owned by institutional investors.

More Realty Income News Here are the key news stories impacting Realty Income this week:

Positive Sentiment: Unusually heavy call-option activity provided a bullish market signal: investors purchased 18,819 call options, roughly 256% above the average daily volume of 5,290 contracts. Options activity does not guarantee a rally, but it suggests some traders are positioning for a rebound. Positive Sentiment: Several investment articles continued to present Realty Income as an attractive dividend stock. Its yield has risen to nearly 6% as the share price has fallen, potentially improving returns for income investors and making the stock more appealing if interest-rate pressures ease. Is Realty Income’s Nearly 6% Yield a Bargain or a Trap? Positive Sentiment: Realty Income’s latest reported quarter showed earnings in line with expectations, revenue above consensus, and 9.7% year-over-year revenue growth. Management’s fiscal 2026 earnings guidance also supports the case for relatively stable operations. Neutral Sentiment: A broader real-estate analysis argues that higher rates can create better long-term buying opportunities by allowing investors to acquire REIT shares at higher starting yields. The near-term risk is continued pressure from elevated Treasury yields and investor demands for wider risk premiums. Why Higher Rates Create The Best Real Estate Buying Opportunities Negative Sentiment: Scotiabank downgraded Realty Income from Sector Outperform to Sector Perform. The downgrade weakened investor confidence and contributed to the stock’s move toward a new 12-month low. Realty Income Rating Lowered to Sector Perform at Scotiabank Analyst Ratings Changes A number of equities analysts have weighed in on O shares. Stifel Nicolaus set a $70.75 target price on Realty Income in a research note on Tuesday, June 30th. Barclays reduced their target price on shares of Realty Income from $67.00 to $65.00 and set an “equal weight” rating on the stock in a report on Friday, September 4th. Huntington started coverage on Realty Income in a research report on Wednesday, July 15th. They issued an “outperform” rating and a $70.00 price objective for the company. Wells Fargo & Company lowered their price objective on shares of Realty Income from $65.00 to $64.00 and set an “equal weight” rating for the company in a research note on Tuesday, September 1st. Finally, Weiss Ratings lowered shares of Realty Income from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $66.23. Get Our Latest Stock Analysis on O

Realty Income Stock Up 0.2% O stock opened at $55.50 on Friday. Realty Income Corporation has a 1-year low of $55.07 and a 1-year high of $67.93. The business has a fifty day moving average price of $61.59 and a 200-day moving average price of $62.21. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88. The stock has a market capitalization of $52.52 billion, a P/E ratio of 40.51, a P/E/G ratio of 3.94 and a beta of 0.71.

Realty Income (NYSE:O – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.09. Realty Income had a net margin of 20.93% and a return on equity of 3.12%. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the firm posted $1.05 EPS. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. Equities analysts forecast that Realty Income Corporation will post 4.42 earnings per share for the current fiscal year.

Realty Income Increases Dividend The company also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a $0.2715 dividend. This is a positive change from Realty Income’s previous monthly dividend of $0.2710. This represents a $3.26 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend is Wednesday, September 30th. Realty Income’s dividend payout ratio is currently 237.23%.

Realty Income Company Profile (Free Report)

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.

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- Strategic Partnership Extends Realty Income's Private Capital Formation Strategy into Europe

- €528 Million KKR Investment for 49% Equity Interest in Stabilized European Portfolio Contributed by Realty Income

- 5.9% Initial Cap Rate Post-Management Fees

- 100% Permanent Equity Treatment Expected by Rating Agencies

, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, and KKR (NYSE: KKR) today announced the formation of a new euro-denominated joint venture that is expected to own a diversified portfolio of existing European net lease real estate assets contributed by Realty Income, spanning four markets and a broad mix of industries and tenants. Capital accounts advised by KKR intend to make an initial investment of €528 million to acquire a 49% equity interest in the joint venture, with Realty Income retaining a 51% ownership interest and continuing to manage the portfolio through its European operating platform.

"This transaction marks another important step in Realty Income's evolution as the leading global net lease platform," said Sumit Roy, Realty Income's President and Chief Executive Officer. "Building on the private capital foundation we have established in the U.S., our strategic partnership with KKR extends this strategy into Europe and demonstrates both the portability of our competitive advantages across borders and the confidence that leading institutional investors have in our platform. We believe the long-term cost and structure of this equity financing create meaningful upside for our shareholders, while further diversifying our capital sources beyond the public markets."

"We are proud to support Realty Income as it extends its private capital strategy into Europe through this bespoke capital solution, designed with the flexibility to expand in line with the company's evolving needs. This transaction builds on KKR's 50-year history of combining partnership with scaled, long-term capital to help leading companies around the world create lasting value," said Christopher Sheldon, KKR Partner.

"We are pleased to invest alongside Realty Income, one of the world's largest net lease REITs, in a diversified portfolio of high-quality, hard-to-replace assets across key markets in Europe, supported by strong underlying real estate fundamentals. We look forward to working together as Realty Income continues to grow its presence in the region," said Seb d'Avanzo, Co-Head of European Real Estate Equity at KKR.

The transaction is expected to close on September 30, 2026, subject to customary closing conditions.

Lazard acted as financial advisor and DLA Piper served as legal advisor to Realty Income. Citi served as financial advisor and Latham & Watkins LLP served as legal advisor to KKR.

Transaction Highlights

Under the terms of the transaction, Realty Income is expected to receive gross proceeds of approximately €528 million in exchange for KKR's acquisition of a 49% equity interest in a euro-denominated joint venture that indirectly owns a diversified portfolio of stabilized net lease assets across four countries in Europe. Realty Income will retain a 51% interest in the joint venture, manage the properties under a long-term management agreement and continue to control day-to-day asset management.

The portfolio is being contributed at an effective 5.9% initial cap rate after recurring asset management fees payable to Realty Income. Realty Income will retain the right to exercise a call option to redeem KKR's equity interest after year 10 and through year 17 of the joint venture, with the future call price calculated to ensure a capped IRR to KKR during its ownership period. The value of the capped IRR will be set upon closing of the transaction and is expected to be between 6.3% and 6.5%.

Key portfolio metrics of the anticipated portfolio, as of June 30, 2026, are as follows:

Countries represented: Spain, Ireland, Poland, Netherlands

Total properties: 54

Total units: 140 

Estimated year 1 cash annual net operating income: €67.7 million

Weighted average remaining lease term: 7.2 years

Investment grade exposure (as percentage of total portfolio base rent): 59%

Expected compound annual contractual growth rate: 1.6%

Top five industries / client categories: Grocery, Transportation Services, Home Improvement, Home Furnishings, Automotive Parts

Portfolio metrics are subject to finalization and may change based on the final composition of the portfolio.

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 June 30, 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 675 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.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.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 our capital formation strategy, discussions of the joint venture with KKR, including the execution and completion thereof, the expected proceeds ownership interests, portfolio including its contribution, metrics and management, fees, call option, and capped IRR related thereto, entry into subsequent joint ventures or other private capital arrangements on a programmatic basis, our business and portfolio including management thereof, and the intentions of management. 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 ability to execute and close the joint venture on the anticipated terms, or at all, our and the joint venture's financial performance; 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 the real estate private capital, credit and mezzanine investments, and joint ventures or co-investment ventures, including solvency, defaults and 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 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.

SOURCE Realty Income Corporation

California State Teachers Retirement System increased its position in Realty Income Corporation (NYSE:O – Free Report) by 6,132.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 94,014,077 shares of the real estate investment trust’s stock after acquiring an additional 92,505,556 shares during the period. California State Teachers Retirement System owned approximately 9.94% of Realty Income worth $5,825,112,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. DGS Capital Management LLC grew its position in Realty Income by 4.3% in the 4th quarter. DGS Capital Management LLC now owns 3,836 shares of the real estate investment trust’s stock worth $216,000 after purchasing an additional 158 shares during the last quarter. Tactive Advisors LLC raised its holdings in shares of Realty Income by 1.8% during the second quarter. Tactive Advisors LLC now owns 9,239 shares of the real estate investment trust’s stock valued at $572,000 after buying an additional 163 shares during the last quarter. Patrick M Sweeney & Associates Inc. boosted its position in shares of Realty Income by 4.5% during the fourth quarter. Patrick M Sweeney & Associates Inc. now owns 3,801 shares of the real estate investment trust’s stock worth $214,000 after buying an additional 164 shares during the period. CYBER HORNET ETFs LLC boosted its position in shares of Realty Income by 7.4% during the fourth quarter. CYBER HORNET ETFs LLC now owns 2,417 shares of the real estate investment trust’s stock worth $136,000 after buying an additional 166 shares during the period. Finally, First National Trust Co boosted its position in shares of Realty Income by 1.2% during the fourth quarter. First National Trust Co now owns 15,109 shares of the real estate investment trust’s stock worth $852,000 after buying an additional 180 shares during the period. 70.81% of the stock is currently owned by institutional investors.

Realty Income Trading Down 1.4% Realty Income stock opened at $60.16 on Thursday. Realty Income Corporation has a 12-month low of $55.86 and a 12-month high of $67.93. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88. The stock has a market capitalization of $56.93 billion, a PE ratio of 43.91, a price-to-earnings-growth ratio of 4.33 and a beta of 0.71. The firm has a 50 day simple moving average of $63.18 and a 200-day simple moving average of $62.94.

Realty Income (NYSE:O – Get Free Report) last announced its earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, hitting the consensus estimate of $1.09. The firm had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.40 billion. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. As a group, equities research analysts expect that Realty Income Corporation will post 4.43 EPS for the current fiscal year. Realty Income Increases Dividend The company also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.2715 per share. This is an increase from Realty Income’s previous monthly dividend of $0.27. This represents a c) annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend is Wednesday, September 30th. Realty Income’s dividend payout ratio (DPR) is 237.23%.

Key Realty Income News Here are the key news stories impacting Realty Income this week:

Positive Sentiment: Monthly dividend increased again: Realty Income raised its monthly dividend to $0.2715 per share from $0.2710, marking its 136th increase. The payout implies an annualized yield of roughly 5.3% and reinforces the company’s appeal to income-focused investors. 136th Common Stock Monthly Dividend Increase Declared by Realty Income Positive Sentiment: Dividend growth appears supported by operations: Coverage from adjusted funds from operations, high occupancy and plans for greater investment provide a fundamental basis for continued payout growth. Realty Income’s latest quarterly revenue also increased year over year, although earnings per share met—not exceeded—analyst expectations. Realty Income Hikes Its Dividend Again: Can Growth Continue? Neutral Sentiment: High investor attention: Realty Income was among the stocks heavily searched by Zacks users. This may increase near-term trading interest, but search activity alone does not establish a change in the company’s outlook. Investors Heavily Search Realty Income Corporation Negative Sentiment: Yield and valuation remain concerns: At approximately 5.3%, Realty Income’s yield offers only a modest premium to government bonds, increasing the importance of AFFO growth, acquisitions and disciplined valuation. Commentary questioned whether the stock is compelling at current levels, particularly given its elevated valuation metrics. Is Realty Income’s 5.3% Yield Still Compelling? Negative Sentiment: Rate uncertainty pressured the shares: Broader trading weakness and uncertainty about the Federal Reserve’s next move can weigh on rate-sensitive REITs such as Realty Income. The stock declined more than the broader market and remained below its 50-day and 200-day moving averages. Federal Reserve Rate Outlook Wall Street Analysts Forecast Growth Several analysts recently commented on the company. Wells Fargo & Company lowered their target price on Realty Income from $65.00 to $64.00 and set an “equal weight” rating on the stock in a research report on Tuesday, September 1st. Huntington assumed coverage on Realty Income in a research report on Wednesday, July 15th. They set an “outperform” rating and a $70.00 price target for the company. Mizuho decreased their price target on Realty Income from $68.00 to $66.00 and set a “neutral” rating for the company in a research note on Wednesday, May 13th. Stifel Nicolaus set a $70.75 price target on Realty Income in a report on Tuesday, June 30th. Finally, Barclays lowered their price target on Realty Income from $67.00 to $65.00 and set an “equal weight” rating on the stock in a report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $67.23.

Get Our Latest Report on O

Realty Income Company Profile (Free Report)

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.

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AXQ Capital LP grew its position in Realty Income Corporation (NYSE:O – Free Report) by 131.2% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 24,289 shares of the real estate investment trust’s stock after purchasing an additional 13,785 shares during the period. AXQ Capital LP’s holdings in Realty Income were worth $1,505,000 at the end of the most recent reporting period.

A number of other large investors also recently made changes to their positions in O. DGS Capital Management LLC grew its position in Realty Income by 4.3% in the 4th quarter. DGS Capital Management LLC now owns 3,836 shares of the real estate investment trust’s stock worth $216,000 after purchasing an additional 158 shares in the last quarter. Tactive Advisors LLC grew its holdings in shares of Realty Income by 1.8% in the second quarter. Tactive Advisors LLC now owns 9,239 shares of the real estate investment trust’s stock valued at $572,000 after acquiring an additional 163 shares in the last quarter. Patrick M Sweeney & Associates Inc. lifted its holdings in Realty Income by 4.5% during the fourth quarter. Patrick M Sweeney & Associates Inc. now owns 3,801 shares of the real estate investment trust’s stock worth $214,000 after acquiring an additional 164 shares during the period. CYBER HORNET ETFs LLC lifted its holdings in Realty Income by 7.4% during the fourth quarter. CYBER HORNET ETFs LLC now owns 2,417 shares of the real estate investment trust’s stock worth $136,000 after acquiring an additional 166 shares during the period. Finally, First National Trust Co boosted its position in Realty Income by 1.2% in the fourth quarter. First National Trust Co now owns 15,109 shares of the real estate investment trust’s stock worth $852,000 after purchasing an additional 180 shares during the last quarter. 70.81% of the stock is owned by institutional investors.

Analyst Ratings Changes O has been the subject of several research analyst reports. Robert W. Baird raised their target price on Realty Income from $64.00 to $65.00 and gave the company a “neutral” rating in a research report on Monday, July 6th. Royal Bank Of Canada reduced their price target on shares of Realty Income from $71.00 to $70.00 and set an “outperform” rating for the company in a research report on Friday, August 7th. Scotiabank decreased their price objective on shares of Realty Income from $72.00 to $67.00 and set a “sector outperform” rating for the company in a report on Thursday, June 18th. Jefferies Financial Group initiated coverage on shares of Realty Income in a research report on Monday, June 1st. They issued a “buy” rating and a $69.00 price objective on the stock. Finally, Weiss Ratings upgraded shares of Realty Income from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $67.23.

View Our Latest Research Report on Realty Income Realty Income Trading Down 0.8% Shares of O stock opened at $61.22 on Friday. The stock has a market capitalization of $57.93 billion, a price-to-earnings ratio of 44.69, a PEG ratio of 4.38 and a beta of 0.71. The company’s fifty day simple moving average is $63.27 and its two-hundred day simple moving average is $63.06. Realty Income Corporation has a 1 year low of $55.86 and a 1 year high of $67.93. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88.

Realty Income (NYSE:O – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, hitting analysts’ consensus estimates of $1.09. The firm had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.40 billion. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The business’s revenue for the quarter was up 9.7% on a year-over-year basis. During the same period last year, the company earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. As a group, analysts anticipate that Realty Income Corporation will post 4.43 earnings per share for the current year.

Realty Income Dividend Announcement The business also recently announced a monthly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be paid a $0.271 dividend. The ex-dividend date is Monday, August 31st. This represents a c) annualized dividend and a yield of 5.3%. Realty Income’s dividend payout ratio (DPR) is currently 237.23%.

More Realty Income News Here are the key news stories impacting Realty Income this week:

Positive Sentiment: Industrial expansion could improve long-term growth. Realty Income is increasing its investment in industrial properties, including warehouses, while benefiting from rent escalators and solid leasing activity. Greater exposure to industrial real estate could diversify the portfolio and support future adjusted funds from operations. Realty Income’s Industrial Expansion: Can it Lift Long-Term Returns? Positive Sentiment: The $10 billion investment plan provides a growth catalyst. Analysts point to Realty Income’s strong deal sourcing, ample liquidity, industrial exposure and potential data-center investments as factors that could help the company deploy capital and expand earnings over time. Realty Income’s $10B Investment Plan: Can Deployment Stay Strong? Neutral Sentiment: The dividend remains a key attraction. Realty Income is scheduled to pay a monthly dividend of $0.271 per share on September 15, its 674th consecutive monthly payment. However, investors are comparing that income stream with Treasury yields near 4.75%, making the dividend’s relative appeal an important consideration. Treasuries Yield 4.75%—Does Realty Income’s Monthly Dividend Still Make Sense? Negative Sentiment: Higher rates are pressuring the stock’s valuation and income appeal. Rising Treasury yields can make Realty Income’s dividend relatively less attractive while increasing financing costs for acquisitions. The broader rate-driven market pullback is likely contributing to investor caution toward the REIT. Negative Sentiment: Recent earnings have not yet provided a clear near-term catalyst. Realty Income met consensus earnings expectations in its latest report, while revenue exceeded estimates and rose year over year. Nevertheless, the stock has remained lower since that report, suggesting investors are focused more on interest-rate sensitivity, valuation and the pace of future capital deployment than on the earnings beat alone. Realty Income Corp. (O) Down Since Last Earnings Report: Can It Rebound? Realty Income Company Profile (Free Report)

Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company’s business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income’s portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

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Key Takeaways Realty Income put about 75% of U.S. real estate investments into industrial assets in the second quarter.Industrial deals generally carry 2-3.5% annual rent escalators and posted 105.8% rent recapture.O's second-quarter AFFO per share rose 3.8% to $1.09, while 2026 guidance increased to $4.44-$4.45. Realty Income (O - Free Report) is pushing harder into warehouses and logistics property, changing the mix of a portfolio still dominated by retail. Industrial assets represented about 65% of Realty Income’s global real estate investments in the second quarter, and 16.2% of annualized base rent as of June 30, 2026, across 604 properties.

The shift is already large in new spending. Realty Income invested about $2.6 billion in the second quarter, or $2.1 billion at its share, at a 7.3% initial cash yield. Management said roughly $800 million went into U.S. industrial assets, about 75% of U.S. real estate investments during the quarter.

Industrial also offers stronger contractual growth than much of the existing portfolio. Management said annual rent escalators on these deals generally run 2% to 3.5%. Industrial accounted for about one-third of second-quarter leasing activity and posted a 105.8% rent recapture rate, suggesting some room for internal growth alongside acquisitions.

Realty Income is accepting lower starting yields in its Core Plus Fund for stronger growth features. Second-quarter acquisitions generated a 6% weighted average cash yield, but came with strong-credit tenants and above-average rent escalators. Same-store revenue growth reached 2.9% through the first half of 2026, while management fees support shareholder accretion from the outset.

For shareholders, industrial expansion matters only if it improves per-share growth without stretching the balance sheet. Second-quarter AFFO per share rose 3.8% to $1.09, and 2026 guidance moved to $4.44-$4.45. Net debt was 5.4 times EBITDAre, so financing costs still matter for returns.

Realty Income Peers Take Different Paths to GrowthAgree Realty (ADC - Free Report) remains focused on retail net leases rather than following Realty Income into industrial assets. Agree Realty invested a record $502 million in the second quarter, while AFFO per share rose 7.4% to $1.14. Agree Realty also raised 2026 investment guidance to $1.6-$1.8 billion, supported by $1.9 billion of liquidity available.

NNN REIT, Inc. (NNN - Free Report) is also sticking to single-tenant net lease properties, giving investors a useful contrast to Realty Income’s industrial push. NNN REIT invested $291 million in the second quarter at a 7.3% initial cash cap rate. NNN REIT raised 2026 acquisition guidance to $700-$800 million and AFFO guidance to $3.55-$3.59 per share.

O’s Price Performance, Valuation and EstimatesShares of Realty Income have gained 1.5% in the past three months, outperforming the industry but lagging the S&P 500 composite. 

Image Source: Zacks Investment Research

From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.56, below the industry but ahead of its three-year median of 13.24. It carries a Value Score of D.

Image Source: Zacks Investment Research

Over the past 30 days, estimates for both 2026 and 2027 FFO per share have remained unchanged.

Image Source: Zacks Investment Research

With the risk-free rate sitting near its highest level in years, Realty Income's legendary monthly dividend streak now faces a pressure test that even 674 consecutive payments cannot automatically survive.

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Realty Income (NYSE:O | O Price Prediction) is set to pay shareholders again. The self-styled Monthly Dividend Company is distributing $0.271 per share on September 15, 2026, its 674th consecutive monthly dividend. That streak, combined with 115 consecutive quarterly increases and 133 total hikes since its 1994 NYSE listing, is the résumé investors buy into. The question for a scorecard: does the payout still deserve top marks with the 10-year Treasury at 4.75%?

Latest Payment and Yield Check The September check works out to an annualized forward dividend of $3.252, up in small monthly steps from $0.2695 as recently as October 2025. At a share price of $61.56, that pencils out to a 5.03% yield. Against a 4.75% risk-free rate, the income premium is just 28 basis points. Historically, O has offered a wider cushion, and that compression is the single biggest reason its grade is under pressure.

AFFO Backs the Payout GAAP optics look ugly: Q2 EPS of $0.37 missed the $0.42 estimate, and full-year net income guidance of $1.59 to $1.60 sits well below the dividend. For a REIT, though, AFFO is the right yardstick. AFFO per share grew 3.8% to $1.09 in Q2, and management raised the full-year midpoint to $4.44 to $4.45. That puts the AFFO payout ratio near 73%, leaving comfortable coverage and reinvestment capacity.

Portfolio and Balance Sheet Backing the Check The underlying real estate is doing its job. Portfolio occupancy stood at 98.8%, and 482 released units generated a blended rent recapture of 102.7%, with international recapture at 112.9%. Investment-grade tenants now account for 34% of annualized rent, up from 32% in Q1. On the balance sheet, net debt to EBITDAre sits at 5.4x, Fitch initiated with an A long-term issuer rating, and pro forma liquidity climbed to more than $5.7 billion. A $6 billion hyperscale data center joint venture with Cloud Capital adds a growth vector that pure retail net-lease peers cannot match.

Final Grade Grading on coverage, streak, portfolio quality, and credit, Realty Income still earns an A. Grading on relative yield, the picture softens: shares are up 12.67% year to date, which has trimmed the spread over Treasuries to a thin margin flagged in Barron’s recent look at the risks of the monthly income craze. Net grade: A-minus. Investors should watch cap rate trends and whether AFFO growth reaccelerates above 4% to justify paying up for the streak. If O’s thinner spread has you shopping the rest of the every-30-days aisle, we lined up seven of our favorite monthly payers in a free report: here.

Contact [email protected] for any questions or corrections.

Chris Lange

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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Altman Advisors Inc. acquired a new position in shares of Realty Income Corporation (NYSE:O – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 31,185 shares of the real estate investment trust’s stock, valued at approximately $1,932,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. EFG International AG bought a new stake in shares of Realty Income in the 4th quarter worth about $26,000. Dunhill Financial LLC acquired a new stake in shares of Realty Income during the 2nd quarter worth about $27,000. Evolution Wealth Management Inc. lifted its holdings in Realty Income by 257.1% during the 4th quarter. Evolution Wealth Management Inc. now owns 500 shares of the real estate investment trust’s stock valued at $28,000 after purchasing an additional 360 shares during the last quarter. Quattro Advisors LLC bought a new position in Realty Income during the 4th quarter valued at about $29,000. Finally, Sankala Group LLC acquired a new position in Realty Income in the fourth quarter valued at about $32,000. 70.81% of the stock is owned by institutional investors.

Analysts Set New Price Targets Several analysts have weighed in on O shares. Wells Fargo & Company upped their price objective on shares of Realty Income from $64.00 to $65.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 15th. Robert W. Baird boosted their target price on Realty Income from $64.00 to $65.00 and gave the stock a “neutral” rating in a report on Monday, July 6th. Scotiabank decreased their price target on Realty Income from $72.00 to $67.00 and set a “sector outperform” rating on the stock in a research report on Thursday, June 18th. UBS Group set a $67.00 price target on Realty Income in a report on Thursday, June 18th. Finally, Evercore set a $68.00 price objective on Realty Income in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $67.42.

View Our Latest Research Report on Realty Income Realty Income Trading Up 0.5% O opened at $63.27 on Friday. Realty Income Corporation has a 1-year low of $55.86 and a 1-year high of $67.93. The stock has a market capitalization of $59.87 billion, a PE ratio of 46.18, a PEG ratio of 4.47 and a beta of 0.71. The company has a current ratio of 5.88, a quick ratio of 5.88 and a debt-to-equity ratio of 0.73. The firm has a 50-day moving average price of $63.18 and a two-hundred day moving average price of $63.16.

Realty Income (NYSE:O – Get Free Report) last announced its earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $1.09. Realty Income had a net margin of 20.93% and a return on equity of 3.12%. The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same period in the prior year, the business earned $1.05 earnings per share. Realty Income’s quarterly revenue was up 9.7% on a year-over-year basis. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. As a group, equities analysts anticipate that Realty Income Corporation will post 4.43 earnings per share for the current fiscal year.

Realty Income Dividend Announcement The company also recently disclosed a monthly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.271 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a c) annualized dividend and a yield of 5.1%. Realty Income’s dividend payout ratio is currently 237.23%.

Realty Income Profile (Free Report)

Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company’s business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income’s portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

Further Reading Five stocks we like better than Realty Income 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding O? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Realty Income Corporation (NYSE:O – Free Report).

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, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today declared its 674th 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 September 15, 2026 to stockholders of record as of August 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 June 30, 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 674 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.

SOURCE Realty Income Corporation

, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced the closing of its previously announced private offering of $1.0 billion aggregate principal amount of 3.750% convertible senior notes due 2031 (the "notes") in a private offering (the "offering") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The offering represents the aggregate of both the previously announced offering of $875.0 million, as well as the full exercise of the $125.0 million option to purchase additional notes granted by Realty Income to the initial purchasers of the notes.

In connection with the pricing of the notes and the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into privately negotiated capped call transactions with certain financial institutions. The cap price of the capped call transactions was initially approximately $83.55 per share of Realty Income's common stock, which represented a premium of approximately 35.0% above the closing price of Realty Income's common stock of $61.89 per share on the New York Stock Exchange on August 11, 2026.

The net proceeds from the offering were approximately $981.9 million, after deducting the initial purchasers' discounts and commissions and Realty Income's estimated offering expenses. Realty Income used approximately $33.2 million of the net proceeds from the offering to pay the cost of the capped call transactions described above. Realty Income used approximately $188.7 million of the net proceeds from the offering to repurchase approximately 3.0 million shares of its common stock concurrently with the pricing of the offering in privately negotiated transactions effected through one of the initial purchasers of the notes or its affiliate, as Realty Income's agent. Realty Income intends to use the remainder of the net proceeds from the offering for general corporate purposes, which may include, among other things, the repayment or repurchase of certain indebtedness (including borrowings under Realty Income's 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 Realty Income's portfolio.

Important Information
The offer and sale of the notes and any shares of Realty Income's common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of, the notes (or any shares of Realty Income's common stock issuable upon conversion of the notes) in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or 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 June 30, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the United Kingdom, 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.

Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the intended use of the net proceeds. Forward-looking statements represent Realty Income's current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Realty Income's business, including those described in periodic reports that Realty Income files from time to time with the SEC. Realty Income may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Realty Income does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.

SOURCE Realty Income Corporation

Key Takeaways Realty Income raised 2026 investment guidance to $10 billion after solid Q2 AFFO growth.Realty Income invested $2.6 billion in Q2 as industrial, Europe and data centers broaden growth channels.Realty Income's strong liquidity and private capital support growth, while higher rates remain a risk. Realty Income Corporation (O - Free Report) entered the second half of 2026 with better earnings visibility after a solid second quarter. AFFO per share increased 3.8% year over year to $1.09, while first-half AFFO per share rose 5.2% to $2.22. Management also raised its full-year AFFO guidance and investment target, pointing to continued opportunities across its expanding property and capital platforms.

The stock reaction, however, was muted. Realty Income shares fell 0.54% to $62.36 on Aug. 6, the first trading session after the Aug. 5 results, and closed at $61.89 on Aug. 10 after another 0.99% decline.

So far this year, Realty Income stock has gained 9.8% but underperformed the Zacks REIT and Equity Trust - Retail industry. However, O stock has outpaced its close peers, like Agree Realty Corporation (ADC - Free Report) and Essential Properties Realty Trust, Inc. (EPRT - Free Report) .

Image Source: Zacks Investment Research

The question now is whether stronger investment activity, steady property fundamentals and an expanding funding platform can support further per-share growth. At the same time, interest rates, acquisition pricing and the valuation investors assign to dependable REIT income remain important considerations.

Realty Income’s Q2 Shows Steady Progress in Core OperationsRealty Income's underlying business remained healthy in the second quarter. Revenues increased to $1.55 billion from $1.41 billion a year ago, while AFFO available to common shareholders rose to $1.02 billion from $947.5 million. Portfolio occupancy was 98.8% compared with 98.9% at the end of the first quarter and 98.6% a year earlier.

The company also generated a 102.7% rent recapture rate on re-leased properties. Same-store rental revenues increased 1.2%, showing that organic growth remains modest but positive. Realty Income's portfolio included 15,588 properties across 92 industries at quarter-end, giving it a level of diversification that is difficult for smaller net-lease operators to match.

Agree Realty and Essential Properties offer similar exposure to long-duration net leases, but both operate with smaller portfolios and somewhat different tenant mixes. Realty Income’s larger scale gives it broader sourcing access across retail, industrial and international markets, while ADC remains more concentrated in high-quality retail properties and EPRT has built a strong position in service-oriented and middle-market tenants.

That scale can help Realty Income find more investment opportunities, although it also means the company needs a much larger volume of acquisitions to generate meaningful per-share growth.

Investment Activity Is the Main Growth Driver of OInvestment activity remains central to Realty Income's outlook. The company invested roughly $2.6 billion during the second quarter, or $2.1 billion at its pro-rata share, at a weighted average initial cash yield of 7.3%. First-half investments totaled about $5.34 billion. Management consequently raised 2026 investment guidance from $9.5 billion to $10 billion.

Industrial properties represented about 65% of second-quarter real estate investment activity. Realty Income is also expanding in Europe, private capital and data centers. Its $6 billion programmatic hyperscale data-center venture with Cloud Capital could involve up to $1.4 billion of equity from Realty Income over time. Management said its wider investment channels allow it to pursue opportunities across asset types, geographies and different parts of the capital structure.

The broader investment approach gives Realty Income more growth channels than either Agree Realty or Essential Properties. ADC remains focused largely on retail net lease, while EPRT continues to expand through a smaller and more targeted acquisition platform. Realty Income, by comparison, is deploying capital across industrial properties, Europe, private-capital vehicles and data centers. This diversification can support longer-term growth, but it also introduces more execution risk as management moves into areas that sit outside the traditional retail net-lease model.

Funding Strength Aids O’s Growth, Rates Remain a RiskRealty Income ended the second quarter with about $3.5 billion of available liquidity and net debt to annualized pro forma adjusted EBITDAre of 5.4 times. After quarter-end, the company expanded its revolving credit facilities to $5.5 billion, increased its commercial-paper capacity and issued €600 million of unsecured notes.

Private capital is also reducing Realty Income’s dependence on common-equity issuance. Management noted that public equity represented only 18% of year-to-date investment volume compared with an average of 47% during the prior three years. This broader funding base could strengthen Realty Income’s ability to compete with Agree Realty, Essential Properties and private-market buyers for attractive assets.

Still, higher Treasury yields remain a challenge for REIT valuations. The real-estate sector came under pressure again on Monday as long-term bond yields rose. Higher financing costs can narrow acquisition spreads and make income-oriented REIT shares less attractive relative to bonds.

Realty Income’s Estimate Revisions and ValuationOver the past 30 days, FFO per share estimates for both 2026 and 2027 have remained unchanged, though the figures suggest 3.97% and 3.47% growth year over year, indicating a balanced view of growth and cost pressures. 

Image Source: Zacks Investment Research

Valuation-wise, Realty Income stock is trading at a forward 12-month price-to-FFO of 13.62X, below the retail REIT industry average of 16.75X but ahead of its three-year median of 13.24X. O stock is also currently trading at a reasonable discount compared with its industry peers, Agree Realty Corporation and Essential Properties Realty Trust. This valuation disparity might not be as favorable as it seems. Agree Realty is trading at a forward 12-month price-to-FFO of 15.80X, while Essential Properties Realty Trust is trading at 14.22X.

The Value Score of C suggests that Realty Income may not be a bargain at current levels. Still, the company’s strategic investments, consistent dividend growth, underpinned by predictable rental income, keep it appealing for long-term income-oriented investors.

Management's higher AFFO guidance is encouraging, yet the increase is modest. Realty Income now expects about 4% AFFO-per-share growth at the midpoint. This suggests investors should weigh the reliable income profile against a growth rate that remains measured.

Image Source: Zacks Investment Research

Conclusion: Hold Realty Income Stock for NowRealty Income's second-quarter results support the case for patience rather than a major change in positioning. The company is producing AFFO growth, maintaining high occupancy and finding enough investment opportunities to raise its 2026 deployment target. Its stronger liquidity position and broader access to private capital are additional upsides. However, the post-earnings share-price weakness, interest-rate sensitivity and modest internal growth argue against chasing the stock after its earlier gains.

For investors who already own Realty Income, maintaining the existing position appears appropriate while collecting the monthly dividend and monitoring whether the larger investment pipeline produces sustained per-share growth over the coming quarters. Check Realty Income’s dividend history here.

At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

© Jack_the_sparow / Shutterstock.com

Realty Income (NYSE:O | O Price Prediction) just notched its 115th consecutive quarterly dividend increase and announced a $6 billion hyperscale data center joint venture with Cloud Capital.

Shares trade at $62.70 and are up 14.62% YTD, yet the market treats this like a boring bond proxy. The question: can O reach $100 by 2027?

Why Realty Income Shares Are Stuck Despite a Guidance Raise The stock slipped 3.93% in the past week and is roughly flat over the last month (-0.35%). GAAP EPS of $0.37 came in below consensus, missing expectations, dragged by $54.19 million in real estate impairment provisions.

Net debt to EBITDAre ticked up to 5.4x from 5.2x. With a beta of 0.72, O doesn’t move fast in either direction. The market is punishing the headline miss while ignoring that revenue topped expectations and AFFO/share grew 3.8% YoY.

Wall Street Sees Modest Upside. Our Model Says 38% The Street consensus target is $68.01, built from 3 Strong Buy, 5 Buy, 15 Hold, and 1 Strong Sell ratings. Our base case is $86.79 for a 38.42% total return by August 2027, with a bull scenario of $95.15 and a bear of $75.27. Confidence sits at 0.9.

Only 33% of analysts are bullish, too low given quarterly earnings growth of 17.9% YoY and the fact O just became the only fourth U.S. REIT to receive an “A” rating from Fitch. The Street is anchored to the old retail net lease story. The data center pivot changes the growth algorithm.

The Path to $100 Per Share Reaching $100 from today’s price of $62.70 would require a gain of 59.5%. With forward EPS of $2.45, a $100 price implies a forward P/E of 41x. Our base case of $86.79 already implies roughly 29x, meaning the bold target needs about 12x of additional multiple expansion.

Two things are required. First, the market must re-rate O out of the “bond proxy” bucket and into a “hybrid infrastructure REIT” bucket. CEO Sumit Roy laid out the case directly: “we are leveraging our scale, relationships, and track record to access new sources of growth while maintaining the same disciplined underwriting standards that have defined Realty Income for decades.”

Second, AFFO growth must accelerate. Management raised 2026 AFFO guidance to $4.44 to $4.45 and lifted investment volume to $10 billion, deploying capital at a 7.3% initial cash yield. The primary risk is a funding-cost spike that compresses spreads on the deals driving the story.

Where Realty Income Trades Today vs Its Earnings Power At $62.70, O trades at a forward P/E near 26x on the $2.45 forward EPS figure, though the more relevant REIT lens is roughly 14x forward AFFO on $4.44.

That is inexpensive for a name compounding AFFO in the mid-single digits with an “A” credit rating and a 5.14% yield. Shares sit between the 52-week low of $53.77 and high of $66.87. Over 10 years, the stock has returned 51.63% in price alone, before dividends.

$100 Is a Stretch, But Here’s Why It’s Possible Getting to $100 by 2027 requires a 59.5% gain and a re-rating to 41x forward earnings.

Three things need to go right: the Cloud Capital hyperscale JV must scale into a repeatable growth engine, AFFO growth needs to move from 4% toward high single digits, and the rate backdrop needs to cooperate enough to preserve investment-grade funding advantages.

A sharp move higher in long rates would derail it. The base case of $86.79 remains more probable. Returns at this level shouldn’t be expected every year, but the blueprint for reaching $100 in 2027 is clear.

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the three and six months ended June 30, 2026. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.

COMPANY HIGHLIGHTS:

For the three months ended June 30, 2026:

Net income available to common stockholders was $344.0 million, or $0.37 per share Adjusted Funds from Operations ("AFFO") per share increased 3.8% to $1.09 per share, compared to the three months ended June 30, 2025 Invested $2.6 billion; our Pro-Rata Share was $2.1 billion at an Initial Weighted Average Cash Yield of 7.3% Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4x Achieved a rent recapture rate of 102.7% on properties re-leased Events subsequent to June 30, 2026:

In July 2026, issued €600.0 million of 3.625% senior unsecured notes due July 2032                                                      In July 2026, amended and restated our unsecured revolving credit facility to $5.5 billion and commercial paper programs to $5.5 billion In August 2026, assigned a Long-Term Issuer Default Rating of 'A' with a Stable Outlook from Fitch Ratings CEO Comments

"Our results reflect the strength of Realty Income's diversified platform and our disciplined approach to capital allocation," said Sumit Roy, Realty Income's Chief Executive Officer. "As demonstrated by our recently announced $6 billion hyperscale data center joint venture and the continued expansion of our Realty Income Investment Management platform, we are leveraging our scale, relationships, and track record to access new sources of growth while maintaining the same disciplined underwriting standards that have defined Realty Income for decades."

"Supported by the resilience of our core portfolio and contributions from these complementary growth channels, we delivered another quarter of solid AFFO per share growth and invested approximately $2.6 billion, or $2.1 billion at our share, during the quarter. As a result, we are pleased to raise our 2026 AFFO per share guidance to $4.44 - $4.45, reflecting approximately 4% growth rate at the midpoint."

Select Financial Results

The following summarizes our select financial results (dollars in millions, except per share data):

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Total revenue

$     1,547.7

$     1,410.4

$     3,096.4

$     2,790.9

Net income available to common stockholders (1)

$       344.0

$       196.9

$       655.7

$       446.7

Net income per share

$         0.37

$         0.22

$         0.70

$         0.50

Funds from operations available to common stockholders (FFO) (2)

$       996.6

$       955.7

$     1,990.2

$     1,893.4

FFO per share 

$         1.07

$         1.06

$         2.13

$         2.11

Normalized funds from operations available to common
  stockholders (Normalized FFO) (2)

$       998.7

$       956.1

$     2,003.0

$     1,894.0

Normalized FFO per share

$         1.07

$         1.06

$         2.14

$         2.11

Adjusted funds from operations available to common stockholders
  (AFFO) (2)

$     1,022.1

$       947.5

$     2,079.7

$     1,897.2

AFFO per share

$         1.09

$         1.05

$         2.22

$         2.11

(1)

The calculation to determine net income available to common stockholders includes provisions for impairment of real estate, provisions for credit losses on loans and financing receivables, gain on sales of real estate, and foreign currency gain and loss. These items can vary from quarter to quarter and can significantly impact net income available to common stockholders and period to period comparisons.

(2)

FFO, Normalized FFO, and AFFO are non-GAAP financial measures. Normalized FFO is based on FFO and adjusted to exclude merger, transaction, and other costs, net and AFFO further adjusts Normalized FFO for unique revenue and expense items. Please see the Glossary for our definitions and explanations of how we utilize these metrics. Please see pages 10 and 11 herein for reconciliations to the most directly comparable GAAP measure.

Dividend Increases 

In June 2026, we announced the 115th consecutive quarterly dividend increase, which is the 135th increase since our listing on the New York Stock Exchange ("NYSE") in 1994. The annualized dividend amount as of June 30, 2026 was $3.252 per share. The amount of monthly dividends paid per share increased 0.7% to $0.812 in the three months ended June 30, 2026, as compared to $0.806 during the three months ended June 30, 2025, representing 74.5% of our diluted AFFO per share of $1.09 during the three months ended June 30, 2026.

Real Estate Portfolio Update

As of June 30, 2026, we owned or held interests in 15,588 properties, which were leased to 1,798 clients doing business in 92 industries. Our diversified portfolio of commercial properties under long-term, net lease agreements is actively managed with a weighted average remaining lease term of approximately 8.6 years. Our portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of June 30, 2026, portfolio occupancy was 98.8% with 188 properties available for lease or sale, as compared to 98.9% as of March 31, 2026 and 98.6% as of June 30, 2025. Our property-level occupancy rates exclude properties with ancillary leases only, such as cell towers and billboards, and properties with possession pending, and include properties owned by unconsolidated joint ventures. Below is a summary of our portfolio activity for the periods indicated below:

Changes in Occupancy

Three months ended June 30, 2026

Properties available for lease as of March 31, 2026

172

Lease expirations (1)

480

Re-leases to same client

(385)

Re-leases to new client

(34)

Vacant dispositions

(45)

Properties available for lease as of June 30, 2026

188

Six months ended June 30, 2026

Properties available for lease as of December 31, 2025

173

Lease expirations (1)

800

Re-leases to same client

(605)

Re-leases to new client

(57)

Vacant dispositions

(123)

Properties available for lease as of June 30, 2026

188

(1)

Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the periods indicated above.

During the three months ended June 30, 2026, the new Annualized Base Rent on re-leased units was $110.3 million, as compared to the previous annual rent of $107.4 million on the same units, representing a rent recapture rate of 102.7% on the re-leased units. Please see the Glossary for our definition of Annualized Base Rent.

During the six months ended June 30, 2026, the new Annualized Base Rent on re-leased units was $183.5 million, as compared to the previous annual rent of $178.2 million on the same units, representing a rent recapture rate of 103.0% on the re-leased units.

Investment Summary
The following table summarizes our investments for the periods indicated below (dollars in millions):

Three months ended June 30, 2026

Six months ended June 30, 2026

Investment

Pro-Rata
Share(1)

Weighted
Average
Term
(Years) (1)

Number of
Properties

Investment

Pro-
Rata
Share (1)

Weighted
Average
Term
(Years) (1)

Number of
Properties

Acquisitions

U.S. wholly-owned

$     887.3

$  887.3

10.8

52

$   1,259.7

$ 1,259.7

10.5

135

U.S. Core Plus Fund

672.5

180.1

12.2

37

843.9

246.0

11.6

58

Europe wholly-owned

243.9

243.9

9.7

5

1,000.0

1,000.0

6.7

47

Non-wholly owned(2)

—

—

—

—

280.1

238.5

14.1

6

Total real estate acquisitions(3)

$   1,803.7

$ 1,311.3

10.7

94

$   3,383.7

$ 2,744.2

9.4

246

Initial Weighted Average Cash
  Yield(4)

6.4 %

6.5 %

Real estate properties under
  development

U.S. wholly-owned

$       44.2

$    44.2

16.6

24

$       74.5

$    74.5

17.1

43

Europe wholly-owned

17.2

17.2

12.2

12

51.3

51.3

13.9

20

Non-wholly owned(2)

74.0

73.3

7.6

14

165.4

164.1

8.7

29

Total real estate properties
  under development(3)

$     135.4

$  134.7

11.1

50

$     291.2

$  289.9

11.8

92

Initial Weighted Average Cash
  Yield(4)

7.6 %

7.5 %

Other investments(5)

U.S. wholly-owned

$     513.3

$  513.3

4.0

—

$   1,233.1

$ 1,233.1

3.8

—

Europe wholly-owned

93.4

93.4

2.8

—

345.1

345.1

3.5

—

Other wholly-owned

22.0

22.0

1.7

—

82.0

82.0

1.9

—

Total other investments

$     628.7

$  628.7

3.8

—

$   1,660.2

$ 1,660.2

3.7

—

Initial Weighted Average Cash
  Yield(4)

9.2 %

8.3 %

Total investments

$   2,567.8

$ 2,074.7

8.1

144

$   5,335.1

$ 4,694.3

7.2

338

Initial Weighted Average Cash
  Yield(4)

7.3 %

7.2 %

Supplementary Information:

Total U.S. and other volume

$ 1,677.9

$ 3,011.4

Initial Weighted Average Cash
  Yield(4)

7.4 %

7.4 %

Total Europe volume

$  396.8

$ 1,682.9

Initial Weighted Average Cash
  Yield(4)

7.0 %

7.0 %

Investment Grade Clients(6)

38 %

40 %

Initial Weighted Average Cash
  Yield - U.S. Core Plus Fund(4)

6.0 %

5.8 %

Initial Weighted Average Cash
  Yield - U.S. Wholly-owned(4)

7.5 %

7.5 %

(1)

Reflects adjustments for our Pro-Rata Share based on our proportionate economic ownership of our joint ventures (which adds our economic ownership percentage of unconsolidated entities and deducts noncontrolling interests). Please see the Glossary for our definition of Pro-Rata Share for more information.

(2)

Non-wholly owned represents U.S. and European investments not 100% owned by Realty Income, excluding the U.S. Core Plus Fund.

(3)

For the three months ended June 30, 2026, our clients occupying the new properties are 34.0% retail, 65.0% industrial, and 1.0% other property types based on Cash Income. For the six months ended June 30, 2026, our clients occupying the new properties are 50.3% retail, 47.8% industrial, and 1.9% other property types based on Cash Income. Please see the Glossary for our definition of Cash Income.

(4)

Initial Weighted Average Cash Yield is a supplemental operating measure. Cash Income used in the calculation of Initial Weighted Average Cash Yield for investments for the three and six months ended June 30, 2026 includes $1.4 million and $3.8 million, respectively, received as settlement credits as the reimbursement of free rent periods. Please see the Glossary for our definitions of Initial Weighted Average Cash Yield and Cash Income.

(5)

Represents various loans across the U.S. and Europe, including construction loans in Mexico related to Realty Income's strategic partnership with GIC, as well as loans associated with a data center joint venture.

(6)

Represents approximate percentage of annualized cash income generated by investments from Investment Grade Clients at the date of investment. Please see the Glossary for our definition of Investment Grade Clients.

Same Store Rental Revenue
The following summarizes our Same Store Rental Revenue for 14,619 properties under lease for the three and six months ended June 30, 2026 and 2025 (dollars in millions):

Three months ended

June 30,

Six months ended

June 30,

% Increase

2026

2025

2026

2025

Three Months

Six Months

Same Store Rental Revenue

$    1,169.2

$    1,155.5

$    2,335.2

$    2,311.7

1.2 %

1.0 %

For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of June 30, 2026. Same Store Rental Revenue also includes our Pro-Rata Share of rental revenue from properties owned by unconsolidated joint ventures and amounts attributable to noncontrolling interests based on their respective ownership percentages. Please see the Glossary to see definitions of our Same Store Pool and Same Store Rental Revenue.

Property Dispositions
The following summarizes our property dispositions (dollars in millions):

Three months ended June 30, 2026

Six months ended June 30, 2026

Properties sold

80

177

Net sales proceeds

$                                              160.7

$                                                348.6

Gain on sales of real estate

$                                                38.3

$                                                 73.9

Liquidity and Capital Markets

Liquidity
As of June 30, 2026, we had $3.5 billion total available liquidity at our Pro-Rata Share(1), comprised of the components summarized below (dollars in millions):

Cash and cash equivalents (2)

$                                            534.6

Availability under credit facilities (3)

3,152.7

Unsettled At-the-Market ("ATM") forwards (4)

1,228.3

Less: commercial paper borrowings

(1,441.4)

Total available liquidity at our Pro-Rata Share

$                                          3,474.2

(1)

 Please see the Glossary for our definition of Pro-Rata Share for more information.

(2)

Reflects adjustments based on our proportionate economic ownership of our joint ventures. Calculated as cash and cash equivalents per the consolidated balance sheet of $552.6 million, plus our Pro-Rata Share of unconsolidated entities cash of $23.4 million, less adjustments allocable to noncontrolling interests of $41.4 million.

(3)

Represents our availability under the $4.0 billion revolving credit facility and our Pro-Rata Share of availability under the $1.38 billion Fund credit facility, which includes a $1.0 billion revolving facility, and a $380.0 million term loan which was fully drawn as of June 30, 2026.

 (4)

As of June 30, 2026, we had outstanding forward-sale agreements under our ATM program for a total of 21.1 million shares of common stock, which have been executed at a weighted average price of $58.34 per share (assuming full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates).

Capital Raising
During the three months ended June 30, 2026, we raised $843.0 million of proceeds from the sale of common stock at a weighted average price of $61.52 per share, primarily through the sale of 13.7 million shares of common stock pursuant to forward sale agreements under our ATM program. As of August 5, 2026, approximately 22.5 million shares of common stock subject to ATM forward sale agreements remain unsettled, of which 1.4 million shares were sold in July 2026, representing approximately $1.3 billion in expected net proceeds and a weighted average initial gross price of $60.34 per share. ATM net sale proceeds assume full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates.

On July 1, 2026, our U.S. Core Plus Fund called $265.7 million of capital from third-party investors, resulting in an indirect ownership of 23.6% in the Fund.

In July 2026, we issued €600.0 million of 3.625% senior unsecured notes due July 2032 (the "2032 Notes"). The public offering price for the 2032 Notes was 99.518% of the principal amount for an effective annual yield to maturity of 3.716%.

In April 2026, we issued $800.0 million of 4.750% senior unsecured notes due April 2033 (the "April 2033 Notes"). The public offering price for the April 2033 Notes was 98.261% of the principal amount for an effective yield to maturity of 5.047%. Interest is paid semi-annually. In connection with the issuance, we executed a $500 million U.S. Dollar-to-Euro 7-year cross currency swap, resulting in approximately €436 million of proceeds and an effective fixed-rate, Euro-denominated yield to maturity of approximately 4.07% and coupon rate of 3.81%. On a combined basis, the Notes and related swap resulted in an effective blended yield to maturity of approximately 4.44% and blended coupon rate of 4.16%.

Expanded Revolving Credit Facilities and Commercial Paper Programs
In July 2026, we closed on the recast and expansion of our $5.5 billion multicurrency unsecured revolving credit facilities, upsized from the prior $4.0 billion capacity. In addition, we also announced an expanded combined capacity of $5.5 billion for our global commercial paper programs, upsized from the prior $3.0 billion combined capacity.

'A' Credit Rating from Fitch Ratings
On August 3, 2026, Fitch Ratings assigned Realty Income a Long-Term Issuer Default Rating of 'A' with a Stable Outlook. In its press release, Fitch Ratings cited Realty Income's long operating history and cycle-tested performance, durable cash flow, portfolio diversification, and strong access to multiple sources of capital as key drivers supporting its 'A' rating.

Guidance

Summarized below are approximate estimates of the key components of our 2026 earnings guidance (with 2026 actual results for comparison):

Revised 2026
Guidance

Prior 2026
Guidance(1)

YTD Actuals at 
June 30, 2026

Net income per share(2)

$1.59 - $1.60

$1.60 - $1.63

$0.70

Real estate depreciation per share

$2.66

$2.65

$1.36

Other adjustments per share(3)

$0.19

$0.16

$0.16

AFFO per share

$4.44 - $4.45

$4.41 - $4.44

$2.22

Same store rent growth

1.1% - 1.3%

1.0% - 1.3%

1.0 %

Occupancy

Approx 98.5%

Approx 98.5%

98.8 %

Cash G&A expenses (% of total Gross Asset Value)(4)(5)

21 - 22 bps

20 - 23 bps

11 bps

Property expenses (non-reimbursable) (% of total
revenue)(6)

Approx 1.5%

Approx 1.5%

1.4 %

Income tax expenses

$100 - $110 million

$100 - $110 million

$52 million

Investment volume (at 100%)

$10.0 billion

$9.5 billion

$5.3 billion

Lease termination income

$45 - $50 million

$45 - $50 million

$41 million

(1)

As issued on May 6, 2026.

(2)

Net income per share excludes future impairment and foreign currency or derivative gains or losses due to the inherent unpredictability of forecasting these items.

(3)

Includes net adjustments for gains or losses on sales of properties, impairments, and merger, transaction, and other non-recurring costs.

(4)

Cash G&A represents 'General and administrative' expenses as presented in our consolidated statements of income, less share-based compensation costs. 

(5)

Please see the Glossary for our definition of Gross Asset Value. 

(6)

Total revenue excludes client reimbursements.

Conference Call Information

In conjunction with the release of our operating results, we will host a conference call on August 5, 2026 at 2:00 p.m. PDT to discuss the operating results. To access the conference call, dial (833) 816-1264 (United States) or (412) 317-5632 (International). When prompted, please ask for the Realty Income conference call.

A telephone replay of the conference call can also be accessed by calling (855) 669-9658 (United States) or (412) 317-0088 (International) and entering the conference ID 5929348. The telephone replay will be available through August 12, 2026.

A live webcast will be available in listen-only mode by clicking on the webcast link on the company's home page at www.realtyincome.com. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. No access code is required for this replay.

Supplemental Materials

Supplemental Operating and Financial Data for the three and six months ended June 30, 2026 is available on our corporate website at www.realtyincome.com/investors/quarterly-and-annual-results.

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 June 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 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. 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.

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 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; operations and results; guidance; our share repurchase program; settlement of shares of common stock sold pursuant to forward sale confirmations under our ATM program; dividends, including the amount, timing and payments of dividends; and macroeconomic and other business trends, including interest rates and trends in the market for long-term leases of freestanding, single-client properties. 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.

CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts) (unaudited)

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

REVENUE

Rental (including reimbursements) (1)

$    1,426,467

$    1,338,188

$    2,867,284

$    2,651,245

Interest income on financing receivables

32,024

32,382

64,154

65,017

Interest and dividend income on loans and preferred equity
investments

88,517

39,480

158,627

74,216

Other

703

328

6,373

405

Total revenue

1,547,711

1,410,378

3,096,438

2,790,883

EXPENSES

Depreciation and amortization

644,677

647,849

1,274,952

1,256,784

Interest

312,083

283,824

604,023

552,198

Property (including reimbursements)

112,439

107,422

229,282

214,103

General and administrative

57,605

49,329

116,490

93,373

Provisions for impairment of real estate

54,185

142,255

144,350

239,673

Provisions for credit losses on loans and financing receivables

7,258

1,108

46,361

20,279

Merger, transaction, and other costs, net

2,058

331

12,845

610

Total expenses

1,190,305

1,232,118

2,428,303

2,377,020

Gain on sales of real estate

38,260

38,566

73,902

61,103

Foreign currency and derivative loss, net

(8,824)

(4,388)

(25,844)

(6,933)

Equity in earnings of unconsolidated entities

2,204

3,269

4,873

7,626

Other income, net

7,275

7,369

22,385

14,536

Income before income taxes

396,321

223,076

743,451

490,195

Income taxes

(25,808)

(24,065)

(52,003)

(39,722)

Net income

370,513

199,011

691,448

450,473

Net income attributable to noncontrolling interests

(26,558)

(2,092)

(35,727)

(3,739)

Net income available to common stockholders

$      343,955

$      196,919

$      655,721

$      446,734

Funds from operations available to common stockholders (FFO)

$      996,600

$      955,748

$    1,990,201

$    1,893,403

Normalized funds from operations available to common
  stockholders (Normalized FFO)

$      998,658

$      956,079

$    2,003,046

$    1,894,013

Adjusted funds from operations available to common
  stockholders (AFFO)

$    1,022,120

$      947,491

$    2,079,673

$    1,897,207

Amounts available to common stockholders per common share:

Net income per common share, basic and diluted

$           0.37

$           0.22

$          0.70

$          0.50

FFO per common share:

Basic

$           1.07

$           1.06

$          2.14

$          2.11

Diluted

$           1.07

$           1.06

$          2.13

$          2.11

Normalized FFO per common share:

Basic

$           1.07

$           1.06

$          2.15

$          2.11

Diluted

$           1.07

$           1.06

$          2.14

$          2.11

AFFO per common share:

Basic

$           1.10

$           1.05

$          2.23

$          2.11

Diluted

$           1.09

$           1.05

$          2.22

$          2.11

Cash dividends paid per common share

$        0.8115

$        0.8055

$       1.6215

$       1.6015

(1)

Includes client reimbursements of $91.1 million and $87.4 million for the three months ended June 30, 2026 and 2025, respectively, and $188.6 million and $174.8 million for the six months ended June 30, 2026 and 2025, respectively. Additionally, includes reserves to rental revenue, exclusive of non-cash reserves, of $4.6 million and $10.9 million for the three months ended June 30, 2026 and 2025, respectively, and $11.0 million and $17.1 million for the six months ended June 30, 2026 and 2025, respectively.

FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FUNDS FROM OPERATIONS (Normalized FFO)
(in thousands, except per share amounts) (unaudited)

FFO and Normalized FFO are non-GAAP financial measures. Please see the Glossary for our definitions and
explanations of how we utilize these metrics.

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Net income available to common stockholders

$      343,955

$    196,919

$       655,721

$       446,734

Depreciation and amortization

644,677

647,849

1,274,952

1,256,784

Depreciation of furniture, fixtures and equipment

(802)

(604)

(1,589)

(1,142)

Provisions for impairment of real estate

54,185

142,254

144,350

239,672

Gain on sales of real estate

(38,260)

(38,566)

(73,902)

(61,103)

Proportionate share of adjustments for unconsolidated entities

9,021

9,085

18,499

15,340

FFO adjustments allocable to noncontrolling interests

(16,176)

(1,189)

(27,830)

(2,882)

FFO available to common stockholders

$      996,600

$    955,748

$     1,990,201

$     1,893,403

FFO allocable to dilutive noncontrolling interests

2,344

2,417

4,377

4,842

Diluted FFO

$      998,944

$    958,165

$     1,994,578

$     1,898,245

FFO available to common stockholders

$      996,600

$    955,748

$     1,990,201

$     1,893,403

Merger, transaction, and other costs, net

2,058

331

12,845

610

Normalized FFO available to common stockholders

$      998,658

$    956,079

$     2,003,046

$     1,894,013

Normalized FFO allocable to dilutive noncontrolling interests

2,344

2,417

4,377

4,842

Diluted Normalized FFO

$    1,001,002

$    958,496

$     2,007,423

$     1,898,855

FFO per common share:

Basic

$           1.07

$        1.06

$           2.14

$           2.11

Diluted

$           1.07

$        1.06

$           2.13

$           2.11

Normalized FFO per common share:

Basic

$           1.07

$        1.06

$           2.15

$           2.11

Diluted

$           1.07

$        1.06

$           2.14

$           2.11

Distributions paid to common stockholders

$      756,779

$    727,450

$     1,514,811

$     1,439,274

FFO after distributions

$      239,821

$    228,298

$       475,390

$       454,129

Normalized FFO after distributions

$      241,879

$    228,629

$       488,235

$       454,739

Weighted average number of common shares used for FFO and
  Normalized FFO:

Basic

932,307

902,966

932,133

897,338

Diluted

937,344

906,398

937,117

900,797

ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share amounts) (unaudited)

AFFO is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize
this metric.

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Net income available to common stockholders

$      343,955

$    196,919

$      655,721

$      446,734

Cumulative adjustments to calculate Normalized FFO (1)

654,703

759,160

1,347,325

1,447,279

Normalized FFO available to common stockholders

998,658

956,079

2,003,046

1,894,013

Debt-related non-cash items:

Amortization of net debt discounts and deferred financing costs

17,696

8,257

33,074

14,890

Amortization of acquired interest rate swap value (2)

1,530

3,555

3,061

7,266

Capital expenditures from operating properties:

Leasing costs and commissions

(1,944)

(1,985)

(3,298)

(2,865)

Recurring capital expenditures

—

(221)

(170)

(240)

Other non-cash items:

Provisions for credit losses on loans and financing receivables

7,258

1,109

46,361

20,280

Amortization of share-based compensation

9,268

8,110

20,651

14,009

Straight-line rent and expenses, net

(39,536)

(30,226)

(79,046)

(74,038)

Amortization of above and below-market leases, net

16,883

6,287

30,763

21,613

Deferred tax expense

281

413

1,718

309

Proportionate share of adjustments for unconsolidated entities

(320)

(1,678)

(774)

(1,641)

Executive severance charge (3)

255

—

1,846

—

Other adjustments (4)

12,091

(2,209)

22,441

3,611

AFFO available to common stockholders

$    1,022,120

$    947,491

$    2,079,673

$    1,897,207

AFFO allocable to dilutive noncontrolling interests

2,338

2,401

4,772

4,802

Diluted AFFO

$    1,024,458

$    949,892

$    2,084,445

$    1,902,009

AFFO per common share:

Basic

$           1.10

$        1.05

$          2.23

$          2.11

Diluted

$           1.09

$        1.05

$          2.22

$          2.11

Distributions paid to common stockholders

$      756,779

$    727,450

$    1,514,811

$    1,439,274

AFFO after distributions

$      265,341

$    220,041

$      564,862

$      457,933

Weighted average number of common shares used for AFFO:

Basic

932,307

902,966

932,133

897,338

Diluted

937,344

906,398

937,117

900,797

(1)

See Normalized FFO calculations on page 10 for reconciling items.

(2)

Includes the amortization of the purchase price allocated to interest rate swaps acquired in our merger with Spirit Realty Capital, Inc.

(3)

The executive severance charge reflects certain benefits related to our Chief Legal Officer's expected departure in September 2026.

(4)

Includes primarily non-cash foreign currency losses (gains) from remeasurement to USD, mark-to-market adjustments on investments and derivatives that are non-cash in nature, obligations related to financing lease liabilities, and adjustments allocable to noncontrolling interests.

HISTORICAL FFO AND AFFO
(in thousands, except per share amounts) (unaudited)

For the three months ended June 30,

2026

2025

2024

2023

2022

Net income available to common stockholders

$    343,955

$    196,919

$    256,804

$    195,415

$    223,207

Depreciation and amortization, net of furniture,
  fixtures and equipment

643,875

647,245

604,960

471,981

408,948

Provisions for impairment of real estate

54,185

142,254

87,204

29,815

7,691

Gain on sales of real estate

(38,260)

(38,566)

(25,153)

(7,824)

(40,572)

Proportionate share of adjustments for unconsolidated
  entities

9,021

9,085

6,380

(465)

9,860

FFO adjustments allocable to noncontrolling interests

(16,176)

(1,189)

(1,062)

(937)

(319)

FFO available to common stockholders

$    996,600

$    955,748

$    929,133

$    687,985

$    608,815

Merger, transaction, and other costs, net

2,058

331

2,754

341

2,729

Normalized FFO available to common stockholders

$    998,658

$    956,079

$    931,887

$    688,326

$    611,544

FFO per diluted share

$         1.07

$         1.06

$         1.07

$         1.02

$         1.01

Normalized FFO per diluted share

$         1.07

$         1.06

$         1.07

$         1.02

$         1.02

AFFO available to common stockholders

$  1,022,120

$    947,491

$    921,074

$    671,737

$    583,728

AFFO per diluted share

$         1.09

$         1.05

$         1.06

$         1.00

$         0.97

Cash dividends paid per common share

$      0.8115

$      0.8055

$      0.7765

$      0.7650

$      0.7410

Weighted average diluted shares outstanding - FFO,
  Normalized FFO, and AFFO

937,344

906,398

872,520

676,388

603,091

For the six months ended June 30,

2026

2025

2024

2023

2022

Net income available to common stockholders

$    655,721

$    446,734

$    386,500

$    420,431

$    422,576

Depreciation and amortization, net of furniture,
  fixtures and equipment

1,273,363

1,255,642

1,185,401

922,916

812,232

Provisions for impairment of real estate

144,350

239,672

175,401

42,993

14,729

Gain on sales of real estate

(73,902)

(61,103)

(41,727)

(12,103)

(50,728)

Proportionate share of adjustments for unconsolidated
  entities

18,499

15,340

11,054

(465)

12,095

FFO adjustments allocable to noncontrolling interests

(27,830)

(2,882)

(1,813)

(1,496)

(673)

FFO available to common stockholders

$  1,990,201

$  1,893,403

$  1,714,816

$  1,372,276

$  1,210,231

Merger, transaction, and other costs, net

12,845

610

96,858

1,648

9,248

Normalized FFO available to common stockholders

$  2,003,046

$  1,894,013

$  1,811,674

$  1,373,924

$  1,219,479

FFO per diluted share

$         2.13

$         2.11

$         2.01

$         2.05

$         2.02

Normalized FFO per diluted share

$         2.14

$         2.11

$         2.12

$         2.06

$         2.04

AFFO available to common stockholders

$  2,079,673

$  1,897,207

$  1,783,945

$  1,322,466

$  1,163,826

AFFO per diluted share

$         2.22

$         2.11

$         2.09

$         1.98

$         1.94

Cash dividends paid per common share

$      1.6215

$      1.6015

$      1.5460

$      1.5165

$      1.4805

Weighted average diluted shares outstanding - FFO,
  Normalized FFO and AFFO

937,117

900,797

854,806

669,903

599,201

ADJUSTED EBITDAre
(dollars in thousands) (unaudited)

Three months ended

June 30, 2026

Net income

$              370,513

Interest

312,083

Income taxes

25,808

Depreciation and amortization

644,677

Executive severance charge

255

Provisions for impairment of real estate

54,185

Provisions for credit losses on loans and financing receivables

7,258

Merger, transaction, and other costs, net

2,058

Gain on sales of real estate

(38,260)

Foreign currency and derivative loss, net

8,824

Equity in earnings of unconsolidated entities

(2,204)

Adjusted EBITDAre (1)

$           1,385,197

Annualized Adjusted EBITDAre (1)

$           5,540,788

Annualized Pro Forma Adjustments

$              111,889

Annualized Pro Forma Adjusted EBITDAre (1)

$           5,652,677

Total debt per the consolidated balance sheet, excluding deferred financing costs and net discounts

$          30,990,552

Less: Cash and cash equivalents

(552,648)

Net Debt

$          30,437,904

Less: Expected proceeds from unsettled forward equity (2)

(1,228,280)

Net Debt - Inclusive of Unsettled ATM Forward Equity

$          29,209,624

Net Debt/Annualized Pro Forma Adjusted EBITDAre (1)

                     5.4x 

Net Debt/Annualized Pro Forma Adjusted EBITDAre - Inclusive of Unsettled ATM Forward Equity(1)

                     5.2x 

(1)

Adjusted EBITDAre, Annualized Adjusted EBITDAre, Annualized Pro Forma Adjusted EBITDAre, Net Debt/Annualized Pro Forma Adjusted EBITDAre, and Net Debt/Annualized Pro Forma Adjusted EBITDAre - Inclusive of Unsettled ATM Forward Equity are non-GAAP financial measures. Please see the Glossary for our definitions of these terms and an explanation of how we utilize these metrics.

(2)

As of June 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 21.1 million shares of common stock, which have been executed at a weighted average forward price of $58.34 per share (assuming full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates).

The Annualized Pro Forma Adjustments, which include transaction accounting adjustments in accordance with U.S. GAAP, consist of adjustments to incorporate Adjusted EBITDAre from investments we acquired or stabilized during the applicable quarter and Adjusted EBITDAre from investments we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable quarter. Our calculation includes all adjustments consistent with the requirements to present Adjusted EBITDAre on a pro forma basis in accordance with Article 11 of Regulation S-X. The following table summarizes our Annualized Pro Forma Adjustments related to our Annualized Pro Forma Adjusted EBITDAre calculation for the period indicated below (in thousands):

Three months ended

June 30, 2026

Annualized pro forma adjustments from investments acquired or stabilized

$               121,946

Annualized pro forma adjustments from investments disposed

(10,057)

Annualized Pro Forma Adjustments

$               111,889

Adjusted Free Cash Flow
(in thousands) (unaudited)

Adjusted Free Cash Flow and Annualized Adjusted Free Cash Flow are non-GAAP financial measures. Please see the
Glossary for our definition and an explanation of how we utilize these metrics. 

Six months ended June 30,

2026

2025

Net cash provided by operating activities

$                   2,019,585

$                   1,848,185

Changes in net working capital

33,518

4,203

Capital expenditures (1)

(50,406)

(32,838)

Distributions paid to common stockholders

(1,514,811)

(1,439,274)

Distributions paid to noncontrolling interests

(17,750)

(5,976)

Merger, transaction, and other costs, net

12,845

610

Adjusted Free Cash Flow

$                     482,981

$                     374,910

Annualized Adjusted Free Cash Flow

$                     965,962

$                     749,820

(1)

Excludes capital expenditures which directly generate incremental rental revenue on our leases.

Reconciliation of Same Store Rental Revenue to Rental Revenue (Including Reimbursements)
(in thousands) (unaudited)

Same Store Rental Revenue is a non-GAAP financial measure. Please see the Glossary for our definition and an
explanation of how we utilize this metric.

Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Rental revenue (including reimbursements)

$     1,426,467

$     1,338,188

$     2,867,284

$     2,651,245

Constant currency adjustment (1)

(4,172)

(1,064)

(9,507)

10,213

Straight-line rent and other non-cash adjustments

4,017

570

4,237

(285)

Contractually obligated reimbursements by our clients

(88,423)

(86,236)

(181,715)

(171,379)

Revenue from excluded properties (2)

(138,254)

(71,273)

(250,242)

(133,590)

Other excluded revenue (3)

(1,780)

(9,503)

(42,110)

(10,769)

Revenue from unconsolidated entities (4)

27,347

29,111

54,119

54,870

Revenue attributable to noncontrolling interests (5)

(56,015)

(44,265)

(106,904)

(88,604)

Same Store Rental Revenue

$     1,169,187

$     1,155,528

$     2,335,162

$     2,311,701

(1)

For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of June 30, 2026. 

(2)

Please see the Glossary for our definitions of Same Store Pool and Same Store Rental Revenue.

(3)

"Other excluded revenue" primarily consists of reimbursements related to lease termination fees and other settlement income.

(4)

Represents our Pro-Rata Share of rental revenue from properties owned by unconsolidated joint ventures.

(5)

Represents the portion of rental revenue attributable to noncontrolling interest based on their pro-rata ownership.

CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts) (unaudited)

June 30, 2026

December 31, 2025

ASSETS

Real estate held for investment, at cost:

Land

$                    18,906,217

$                    18,368,029

Buildings and improvements

45,672,483

43,824,410

Total real estate held for investment, at cost

64,578,700

62,192,439

Less accumulated depreciation and amortization

(9,466,261)

(8,778,536)

Real estate held for investment, net

55,112,439

53,413,903

Real estate and lease intangibles held for sale, net

153,134

91,784

Cash and cash equivalents

552,648

434,842

Accounts receivable, net

1,134,987

1,053,487

Lease intangible assets, net

5,616,706

5,717,241

Goodwill

4,932,199

4,932,199

Investment in loans and financing receivables, net

4,888,860

3,271,002

Investment in unconsolidated entities

1,348,453

1,256,456

Other assets, net

2,702,049

2,624,698

Total assets

$                    76,441,475

$                    72,795,612

LIABILITIES AND EQUITY

Distributions payable

$                        259,252

$                        255,171

Accounts payable and accrued expenses

1,119,132

1,060,969

Lease intangible liabilities, net

1,457,071

1,493,958

Other liabilities

1,020,290

1,066,809

Revolving credit facilities and commercial paper

2,762,585

2,023,414

Term loans, net

2,760,395

1,701,615

Mortgages payable, net

37,085

37,761

Notes payable, net

25,091,588

25,031,947

Total liabilities

$                    34,507,398

$                    32,671,644

Stockholders' equity:

Common stock and paid in capital, par value $0.01 per share,
1,300,000 shares authorized, 946,202 and 933,975 shares issued
and outstanding as of June 30, 2026 and December 31, 2025,
respectively

$                    50,845,906

$                    49,861,660

Distributions in excess of net income

(11,391,151)

(10,527,984)

Accumulated other comprehensive income

94,802

105,019

Total stockholders' equity

$                    39,549,557

$                    39,438,695

Noncontrolling interests

2,384,520

685,273

Total equity

$                    41,934,077

$                    40,123,968

Total liabilities and equity

$                    76,441,475

$                    72,795,612

GLOSSARY

Adjusted EBITDAre. The National Association of Real Estate Investment Trusts ("Nareit") established an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) it believed would provide investors with a consistent measure to help make investment decisions among certain REITs. Our definition of "Adjusted EBITDAre" is generally consistent with the Nareit definition, other than our adjustment to remove foreign currency and derivative gain and loss and merger, transaction, and other costs, net. We define Adjusted EBITDAre, a non-GAAP financial measure, for the most recent quarter as earnings (net income) before (i) interest expense, (ii) income taxes, (iii) depreciation and amortization, (iv) executive severance charge, (v) provisions for impairment of real estate, (vi) provisions for credit losses on loans and financing receivables, (vii) merger, transaction, and other costs, net, (viii) gain on sales of real estate, (ix) foreign currency and derivative gain and loss, net, and (x) equity in earnings of unconsolidated entities. Our Adjusted EBITDAre may not be comparable to Adjusted EBITDAre reported by other companies or as defined by Nareit, and other companies may interpret or define Adjusted EBITDAre differently than we do. Management believes Adjusted EBITDAre to be a meaningful measure of a REIT's performance because it provides a view of our operating performance, analyzes our ability to meet interest payment obligations before the effects of income tax, depreciation and amortization expense, provisions for impairment, provisions for credit losses on loans and financing receivables, gain on sales of real estate and other items, as defined above, that affect comparability, including the removal of non-recurring and non-cash items that industry observers believe are less relevant to evaluating the operating performance of a company. In addition, EBITDAre is widely followed by industry analysts, lenders, investors, rating agencies, and others as a means of evaluating the operating performance of business activities prior to servicing debt obligations. Adjusted EBITDAre should be considered along with, but not as an alternative to, net income as a measure of our operating performance.

Adjusted Free Cash Flow, a non-GAAP financial measure, is defined as net cash provided by operating activities, less certain capital expenditures, distributions paid to common stockholders and noncontrolling interests, merger, transaction, and other costs, net, and changes in net working capital. We believe adjusted free cash flow to be a useful liquidity measure for us and our investors by helping to evaluate our ability to generate cash beyond what is needed to fund capital expenditures, debt service and other obligations. Notwithstanding cash on hand and incremental borrowing capacity, adjusted free cash flow reflects our ability to grow our business through investments and acquisitions, as well as our ability to return cash to shareholders through dividends. Adjusted free cash flow is not considered under generally accepted accounting principles to be a primary measure of an entity's residual cash flow available for discretionary spending, and accordingly should not be considered an alternative to operating income, net income, or amounts shown in our consolidated statements of cash flows.

Adjusted Funds From Operations (AFFO), a non-GAAP financial measure, is defined as FFO adjusted for unique revenue and expense items, which we believe are not as pertinent to the measurement of our ongoing operating performance. Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution). We believe AFFO provides useful information to investors because it is a widely accepted industry measure of the operating performance of real estate companies used by the investment community. In particular, AFFO provides an additional measure to compare the operating performance of different REITs without having to account for differing depreciation assumptions and other unique revenue and expense items which are not pertinent to measuring a particular company's ongoing operating performance. Therefore, we believe that AFFO is an appropriate supplemental performance metric, and that the most appropriate GAAP performance metric to which AFFO should be reconciled is net income available to common stockholders.

Annualized Adjusted EBITDAre, a non-GAAP financial measure, is calculated by multiplying Adjusted EBITDAre for the applicable quarter by four. Management believes the use of an Annualized Adjusted EBITDAre metric is meaningful because it represents our run rate operating performance for the period presented.

Annualized Adjusted Free Cash Flow, a non-GAAP financial measure, is calculated by annualizing Adjusted Free Cash Flow.

Annualized Base Rent represents our Pro-Rata Share of contractual monthly base rent for all leases in place and exchange rates as of the balance sheet date, multiplied by 12, and excludes percentage rent and income on loans and preferred equity investments. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. Total annualized base rent has not been reduced to reflect reserves recorded as reductions to GAAP rental revenue in the periods presented. We believe total annualized base rent is a useful supplemental operating measure, as it excludes properties that were no longer owned at the balance sheet date and includes the annualized rent from properties acquired during the quarter.

Annualized Pro Forma Adjusted EBITDAre, a non-GAAP financial measure, is defined as Annualized Adjusted EBITDAre, which includes transaction accounting adjustments in accordance with U.S. GAAP, adjusted to incorporate Adjusted EBITDAre from investments we acquired or stabilized during the applicable quarter and Adjusted EBITDAre from investments we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable quarter. Our calculation includes all adjustments consistent with the requirements to present Annualized Adjusted EBITDAre on a pro forma basis in accordance with Article 11 of Regulation S-X. The ratio of our net debt to our Annualized Pro Forma Adjusted EBITDAre is also used to determine the vesting of performance share awards granted to our executive officers.

Cash Income represents expected rent for real estate acquisitions as well as rent to be received upon completion of the properties under development. For unconsolidated entities and consolidated entities with noncontrolling interests, this represents our Pro-Rata Share of the cash income. For loans receivable and preferred equity investments, this represents earned interest income and preferred dividend income, respectively.

Funds From Operations (FFO), a non-GAAP financial measure, consistent with the Nareit definition, is net income available to common stockholders, plus depreciation and amortization of real estate assets, plus provisions for impairments of depreciable real estate assets, and reduced by gain on property sales. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered measures of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments. We consider FFO to be an appropriate supplemental measure of a REIT's operating performance as it is based on a net income analysis of property portfolio performance that adds back items such as depreciation and impairments for FFO. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT using historical accounting for depreciation could be less informative. The use of FFO is recommended by the REIT industry as a supplemental performance measure. In addition, FFO is used as a measure of our compliance with the financial covenants of our credit facility.

Gross Asset Value is total assets before accumulated depreciation and amortization.

Initial Weighted Average Cash Yield for acquisitions and properties under development is computed as Cash Income for the first twelve months following the acquisition date, divided by the total cost of the property (including all expenses borne by us), and includes our Pro-Rata Share of Cash Income from unconsolidated joint ventures and consolidated entities with noncontrolling interests. Initial weighted average cash yield for loans receivable and preferred equity investments is computed using the Cash Income for the first twelve months following the acquisition date, divided by the total cost of the investment.

Investment Grade Clients are our clients, our clients that are subsidiaries or affiliates of companies, and credit investments secured with a real estate property leased to a tenant, that as of the balance sheet date, have a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody's/S&P/Fitch).

Net Debt/Annualized Pro Forma Adjusted EBITDAre, a ratio used by management as a measure of leverage, is calculated as net debt (which we define as total debt, excluding deferred financing costs and net discounts, less cash and cash equivalents), divided by Annualized Pro Forma Adjusted EBITDAre.

Net Debt/Annualized Pro Forma Adjusted EBITDAre - Inclusive of Unsettled ATM Forward Equity, a ratio used by management as a measure of leverage, is calculated as net debt inclusive of unsettled ATM forward equity (which we define as total debt, excluding deferred financing costs and net discounts, less cash and cash equivalents, less expected proceeds from unsettled ATM forward equity as of the balance sheet date), divided by Annualized Pro Forma Adjusted EBITDAre.

Normalized Funds from Operations Available to Common Stockholders (Normalized FFO), a non-GAAP financial measure, is FFO excluding merger, transaction, and other costs, net.

Pro-Rata Share represents our proportionate economic ownership of our joint ventures, which is derived by applying our economic ownership percentage of each such joint venture to calculate our proportionate share of the relevant line item information being presented, and aggregating that information for all such joint ventures. For balance sheet information and other capital-based metrics, we apply our economic ownership percentage as of the end of the applicable period being presented, and for activity- and earnings-based metrics, we apply our weighted average economic ownership percentage for the applicable period being presented, unless otherwise specified.

We believe this form of presentation offers insights into the financial performance and condition of our company as a whole, given the significance of our joint ventures that are accounted for either under the equity method or consolidated with the third parties' share included in noncontrolling interest, although the presentation of such information may not accurately depict the legal and economic implications of holding a noncontrolling interest in the joint venture. We do not control the unconsolidated joint ventures in which we are invested for purposes of GAAP and do not represent legal claim to such items.

The operating agreements of the joint ventures may contain provisions that would cause us to receive a different economic percentage of distributions from the joint venture under certain circumstances, such as the amount of capital contributed by each investor and whether any contributions are entitled to priority distributions. Similarly, upon a liquidation of any such joint venture, subject to the applicable terms of the operating agreement of such joint venture, we generally would be entitled to the applicable percentage of residual cash or other assets that remain only after repayment of all liabilities, priority distributions, and initial equity contributions. In addition, the economic interests in any joint venture may be different than our other legal interests or rights in such joint venture.

We provide pro-rata financial information because we believe it assists investors and analysts in estimating our economic interest in our joint ventures when read in conjunction with our reported results under GAAP. Other companies may calculate their proportionate interest differently than we do, limiting the usefulness as a comparative measure. Due to these limitations, the non-GAAP pro-rata financial information should not be considered in isolation or as a substitute for our consolidated financial statements as reported under GAAP.

Same Store Pool, for purposes of determining the properties used to calculate our same store rental revenue, includes all properties that we owned for the entire year-to-date period, for both the current and prior year except for properties during the current or prior year that were: (i) vacant at any time, (ii) under development or redevelopment, or (iii) involved in eminent domain and rent was reduced.

Same Store Rental Revenue excludes straight-line rent, the amortization of above and below-market leases, and reimbursements from clients for recoverable real estate taxes and operating expenses. For purposes of comparability, same store rental revenue is presented on a constant currency basis by applying the exchange rate as of the balance sheet date to base currency rental revenue. We present same store rental revenue on a pro-rata basis to account for our share of same store rental revenue related to unconsolidated and consolidated joint ventures. For purposes of comparability, we calculate our Pro-Rata Share using our ownership percentage as of June 30, 2026 to same store rental revenue for the three and six months ended June 30, 2026 and 2025.

SOURCE Realty Income Corporation

Many investors would be satisfied with a dividend payout streak of 12, 20, or 30 consecutive disbursements. Keep in mind that the typical dividend is paid quarterly, so there would be a gap of several months between each payment.

Now imagine a stock that not only had a run stretching back to 1969, but one that's dispensed a dividend monthly instead of quarterly, for a hard-to-believe total of 673 distributions (including its time as a privately held business). Well, no imagination is needed because such a company exists -- veteran real estate investment trust (REIT) Realty Income (O -0.61%).

Image source: Getty Images.

Generous for good reason To be clear, Realty Income isn't constantly paying a dividend purely out of the goodness of its heart. In the U.S., since 1960, REITs have been required to distribute at least 90% of their taxable income as shareholder payouts (the requirement was raised to 95% in 1980 but returned to the original level in 2001).

This is why REITs tend to have high dividend yields, well above the current average of 1.1% for all S&P 500 index component stocks. These days, Realty Income's yield floats slightly above 5%; this crushes the S&P 500 index average and is in line with other large REITs of its type, although some specialty and distressed REITs have yields approaching or exceeding 10%.

But what investors are buying with Realty Income is a monster in the sector, with over 15,500 properties across 92 separate industries. The vast majority of these are in the company's native U.S., but at the end of the previous decade, it diversified overseas and now has assets in major European markets such as the U.K., Germany, and Spain.

The vast majority of these are rented under triple-net (NNN) lease contracts. These obligate the tenant to pay not only rent but also property taxes, insurance, and maintenance costs. Tenants are willing to accept such terms because the REIT's real estate tends to be in choice, high-traffic areas.

As a result, those tenants like to stick around. Realty Income's latest occupancy rate was a very lofty 98.9%. Not many of its properties are standing empty.

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Ever-expanding footprint With more than 15,500 revenue sources and new properties being added constantly, Realty Income is continually growing its business. In the first quarter alone, its revenue leaped 12% higher to almost $1.55 billion. Adjusted funds from operations (AFFO, widely considered to be the most accurate profitability gauge for REITs) gained 11% to $1.06 billion.

Zooming out some, thanks to growth in its legacy business and the acquisition of complementary assets, Realty Income's annual top line has nearly tripled over the past five years, from under $2.09 billion in 2021 to almost $5.76 billion last year. Not to be outdone, AFFO across that stretch advanced from $1.49 billion to $3.89 billion.

Realty Income offers the highly appealing combination of an immense, highly productive property portfolio and a dividend delivered every single month. It's more expensive on a valuation basis and has a lower yield than some other REITs, but there's a premium for size and performance. This is a very satisfying stock to own, particularly for income investors.

Realty Income (O -0.45%), the real estate investment trust (REIT) known for paying a monthly dividend, next reports quarterly earnings post-market on Aug. 4, 2026. Despite concerns like the potential for higher interest rates, Realty Income's shares have held up quite well in recent months.

Recent positive developments, including the stock's latest dividend hike, may explain this. Yet while earnings should provide new insight into the REIT's long-term prospects, I wouldn't view this as a "buy before" earnings situation.

Image source: Getty Images.

Realty Income Q2 2026 earnings preview For Q2 2026, the quarter ending June 30, analysts expect Realty Income to report revenue of around $1.43 billion, and funds from operations (FFO), the REIT version of earnings, of $1.09 per share, representing 7% and 2.8% year-over-year increases, respectively.

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Beyond the results themselves, other factors could prompt a bullish response from investors. For instance, further news of the net lease REIT's continued move into the data center space could bode well for the stock post-earnings.

On the other hand, negative developments could materialize, such as management having to walk back its FFO guidance after raising it, whether due to interest rate trends or other macro factors.

Stay focused on the long-term picture Irrespective of Realty Income's pre-earnings and post-earnings price action, it's important to stay focused instead on the long-term picture. This REIT, which has paid a monthly dividend and raised its payout annually since going public in 1994, should continue to deliver solid returns if these trends hold.

Currently, Realty Income has a forward dividend yield of around 5%. Despite mixed payout growth in recent years, it could accelerate in the years ahead if efforts such as the data center pivot drive greater FFO growth.

If you're concerned about further rate hikes, hold off buying for now. However, if you believe rates will hold fairly steady from here, consider it a long-term buy, especially if shares encounter any post-earnings volatility.

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.

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.

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.