Track market-moving stories before they get noisy

Apple late Monday beat Wall Street's targets for its fiscal fourth quarter. But Apple stock fell in extended trading.

The company said iPhone sales remained strong, but warned that the cost of memory chips for its devices were going up.

Apple (AAPL) beat on both the top and bottom lines after making an eyewatering $114.5 billion in sales during the previous quarter. iPhone and services revenue bolstered multi-billion-dollar beats, though iPad and wearables, home & accessories revenue missed.

Apple says sales slowed down in the fiscal fourth quarter, but still beat estimates. Revenue out of China missed estimates.

Apple (AAPL -1.83%), the technology giant behind the iPhone and its expanding digital services business, closed Monday at $338.32, down 1.83% amid a broader technology sell-off. Following the closing bell, Apple reported better-than-expected quarterly earnings, supported by strong iPhone demand, providing investors with a more encouraging outlook after a difficult trading session.

Trading volume reached 55.4 million shares, approximately 32% above its three-month average of 42.1 million, as investors anticipated the company's earnings announcement.

AAPL Apple$338.32-$6.31 (-1.83%)

NASDAQ · As of 4:00 PM ET 11/02/26

How the markets moved todayThe S&P 500 (^GSPC -0.51%) fell 0.50% to 7,542, and the Nasdaq Composite (^IXIC -1.07%) lost 1.07% to 25,164. Among consumer electronics, personal computers, smartphones and digital services peers, Microsoft (MSFT -2.83%) closed at $507.12, -2.83%, while Alphabet (GOOGL -0.30%) (GOOG -0.07%) closed at $278.99, -0.30%.

What this means for investorsApple's latest earnings offered investors some reassurance following a difficult session for technology stocks. The company reported fiscal fourth-quarter revenue of $114.5 billion, exceeding Wall Street expectations, while earnings of $2.10 per share also topped forecasts. Strong demand for its latest iPhone 18 helped drive the results, with iPhone revenue increasing approximately 17% year over year to $57.6 billion.

However, the report wasn't without concerns. Apple's gross margin declined to 47.9% from 50.1% in the previous quarter, reflecting rising component costs and a smaller benefit from tariff refunds. Sales in China and the iPad business also fell short of expectations, highlighting challenges beyond its core iPhone franchise.

For investors, the results reinforce Apple's ability to generate revenue growth even amid broader economic uncertainty. With technology valuations under scrutiny, the focus now shifts to whether Apple can sustain strong iPhone demand through the holiday season while protecting profitability.

RJ Fulton has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.

Apple posted September quarter revenue that narrowly topped analysts' estimates, even as sales in the key Chinese market fell short of projections. Revenue rose 12% to $114.5 billion during the fiscal fourth quarter, which ended Sept.

Apple’s stockpiling of inventory, particularly computer memory, continued in its fiscal fourth-quarter, according to earnings reported Monday. The company reported that its inventory increased significantly in the quarter, growing from $11.09 billion in Q3 to $14.54 billion in Q4, a jump of 31.1%. Year-over-year, inventory grew 154.3% from $5.72 billion in the fourth quarter of 2025.

Apple’s forecast of a 45% to 46% gross margin in the December quarter was largely attributed to the impact of higher memory costs. The company reported a gross margin of 47.9% for the September quarter.

“What we’re seeing with memory pricing right now is unprecedented,” said Apple CEO John Ternus, speaking to analysts on the call. “As we said earlier in the September quarter, we did see higher memory costs as compared to the June quarter, which were partly offset by the benefit of carrying inventory and lower costs on certain non-memory components.”

He said that the company expected “even higher memory costs” in the December quarter, which would be partially offset by price increases implemented earlier this year on some devices, including Mac and iPad at the end of June and iPhones in September.

Ternus also said that beyond December, Apple expects memory costs “continuing to increase.”

“As we said before, we do believe we’ll see a decreasing benefit from the carry-in inventory on memory over time,” he noted, adding that the company was increasing its purchases of this key component. “As we work to improve supply, our manufacturing purchase obligations have increased by 33 billion dollars from June to the September quarter, which you’ll see in our annual filing when it comes out tomorrow.”

Apple also brought COO Sabih Khan, who oversees the company’s supply chain and manufacturing, onto the call to address questions about memory. He reiterated the increased purchase obligations but did not rule out future price increases on Apple devices.

The company also blamed supply constraints for weak iPad sales in the quarter. The iPad was one of the only product segments that didn’t grow, even as iPhone and Mac sales beat estimates. iPad revenue was $6.2 billion, below analysts’ expectations of $6.7 billion. The figure was also down 10% from the prior year.

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Meta Platforms has faced intense scrutiny after announcing upcoming changes to its terms that, essentially, allow AI crawlers to run wild across business accounts.

A few weeks ago, a Tesla (TSLA +1.00%) Roadster drove up a nearly vertical ramp, turned upside down, then fell -- I mean, launched itself -- into the air before its side thrusters kicked in, flipping the car upright and landing it on the road below. It was by far the most incredible maneuver I've ever seen a car pull off. The Tesla then drove out of a cloud of vapor as if nothing had happened.

If you haven't seen Tesla's new flying car, it's worth watching the video (in another stunt, the car launches itself upside down and literally barrel-rolls over five vehicles before landing upright). It's an extraordinary demonstration of engineering, and one of those rare glimpses of a future that, until recently, seemed firmly in the realm of science fiction.

But now, what does this mean for Archer Aviation (ACHR -0.71%)? After all, Archer has also spent years developing its own flying vehicle -- an electric air taxi. If Tesla can make a flying car, will there still be a market for Archer's flying taxi, assuming it can get it certified? Let's take a look.

Image source: Archer Aviation.

Tesla's flying car is stunning, but it's not a threat to Archer I'll just come out and say it: I don't think Tesla's flying Roadster will have an impact on Archer.

For starters, Tesla isn't really competing with Archer. Look at what Tesla is making: A sports car -- a really sleek and aesthetically striking sports car -- that can burst briefly into flight. In contrast, Archer is building an eVTOL (electric vertical takeoff and landing) vehicle that can take off and land vertically like a helicopter and transition into forward flight like a traditional airplane. It's also an engineering feat, and unlike Tesla's Roadster, it doesn't need thrusters to launch into the air.

These are obviously different vehicles, built for different purposes. And between the two, Archer's is more practical. It's designed to carry four passengers and a pilot. The Roadster, on the other hand, can only carry one person.

ACHR Archer Aviation$4.17-$0.03 (-0.71%)

NYSE · As of 4:00 PM ET 11/02/26

Archer's aircraft is also likely closer to real-world use than Tesla's. The flying Roadster might be functional, but it's not approved for road use. There's some question as to whether Tesla could ever get regulatory approval to mass-produce a flying Roadster, but even if it did, it would likely not beat Archer to the punch. Archer has already completed three of the FAA's four type-certification phases and is now working through the final one.

Don't get me wrong, though: Tesla's recent demonstration was very impressive. But it was only impressive as a spectacle, not something that could solve transportation problems, like congested metropolitan roads. Archer's eVTOL, on the other hand, could alleviate traffic in some areas.

In sum, I don't believe Tesla's flying car changes much for Archer Aviation's future. If anything, it could even increase publicity around flying cars, helping Archer's air taxi services when it does get its eVTOL certified.

Alphabet (GOOG -0.07%) (GOOGL -0.30%) investors had reason to frown last week as the stock posted its worst trading day ever. The shares fell 13% in one session after certain key elements in the tech giant's earnings report disappointed investors.

What happened? It all starts with artificial intelligence (AI). Alphabet is at the forefront of the AI movement, something that has led to soaring revenue quarter after quarter. But to make this happen, Alphabet had to greatly invest in an infrastructure build-out, and this spending isn't over. Alphabet isn't the only company in this situation; others operating in the cloud space also are investing hundreds of billions of dollars annually to get the job done. In fact, Alphabet, Amazon, Microsoft, and Meta Platforms aim to spend more than $700 billion this year alone on infrastructure expansion. Though these companies are generating growth from AI, investors worry it may not be enough given their spending levels.

Considering the full picture, following Alphabet's loss of $500 billion in market value in one trading session, you might approach AI stocks with a bit of hesitance. Should you really buy AI stocks now? Let's find out.

Image source: Getty Images.

Alphabet's biggest revenue driverWe'll start by talking about the negative impact of this spending on Alphabet. You probably know this company best for Google Search, as it's something many of us use daily. The Google platform is indeed the company's biggest revenue driver -- advertisers pay to promote across it, and that generates billions of dollars for Alphabet. In the recent quarter, Google ads accounted for 64% of the company's total revenue.

But Alphabet also has a cloud computing business that's growing in leaps and bounds, supercharged by demand for AI infrastructure and enterprise solutions. That business delivered a record 103% gain in revenue in the quarter to more than $30 billion. This is positive and offers investors reason to be optimistic, but as mentioned, to reach this level of growth, Alphabet poured investment into an infrastructure build-out.

As a result, capital spending has exploded higher, and this has hurt free cash flow -- these two elements were the points of concern in the company's earnings report. Alphabet kept its capex forecast for the year unchanged at $195 billion to $205 billion. As for free cash flow, it came in at negative $9 billion, missing analysts' estimates of $2.7 billion.

All of this reawakened investors' concerns that, though AI investment is driving growth, this growth still may not justify the spending levels of Alphabet and other tech players in this AI revolution.

GOOGL Alphabet$278.99-$0.85 (-0.30%)

NASDAQ · As of 4:00 PM ET 11/02/26

AI companies are in a period of transitionNow, let's return to our question: Should you really buy AI stocks right now? AI companies today may indeed be in a period of transition. Over the past couple of years, investors have been excited about the initial AI opportunity as hardware and services companies have offered chips and related products to customers. This resulted in enormous revenue growth and double- and triple-digit gains in stock prices. And this, prior to the major infrastructure ramp-up, didn't involve today's capex levels.

Today, we're at a point where, to move forward along the AI path to fulfill demand and potentially generate more growth, tech giants must heavily invest. While this investment is unfolding, they will experience pressure. Amazon chief Andy Jassy told analysts during the company's second-quarter call in July that this spending would continue to be a headwind for free cash flow as the build-out unfolds.

With some investors frowning on this spending, we could see more turbulence in terms of stock performance in the months to come. If you're a very cautious investor, you might wait on the sidelines for this moment to at least partially pass. But for most investors, right now, as these stocks decline, it's the perfect time to buy at a bargain price. The long-term AI story remains bright, with the technology's ability to transform the way businesses operate in a positive way. And this means investors who include AI stocks in a well-diversified portfolio could score a major win over the long run.

Amazon (AMZN +2.20%), the world's largest e-commerce and cloud infrastructure company, has delivered an impressive 534% gain over the past ten years. But does its stock still have more upside potential over the next decade?

What are Amazon's biggest catalysts?
Amazon generates most of its revenue from its e-commerce business, but its cloud platform, Amazon Web Services (AWS), brings in most of its operating profits.

Image source: Getty Images.

Over the past ten years, AWS' annual revenue jumped from $7.9 billion to $128.8 billion, while its operating margin expanded from 19.2% to 35.4%. AWS' surging profits enabled Amazon to expand its Prime ecosystem with more discounts, hardware devices, streaming media services, and other loss-leading strategies. It's already locked in more than 200 million Prime subscribers worldwide, which gives it a wide moat against other online and brick-and-mortar retailers.

AWS already hosts tens of millions of websites and apps, and it's helping its developers build and train new generative AI apps on platforms like Bedrock and SageMaker. Amazon has also been producing its own first-party AI accelerators, and it owns nearly a fifth of Anthropic -- the rapidly growing AI company that plans to go public by the end of 2026.

All of those AI catalysts for AWS -- along with the expansion of its e-commerce business into higher-growth overseas markets and the growth of its higher-margin advertising business -- could drive its earnings growth over the next decade.

AMZN Amazon$245.63+$5.28 (+2.20%)

NASDAQ · As of 4:00 PM ET 11/02/26

What are Amazon's biggest challenges?
Amazon's growth rates are impressive, but its expansion will be costly. It expects its capex to reach $220 billion in 2026 (up from $131.8 billion in 2025) and to rise further in 2027. That increased spending -- and competition from other hyperscalers -- could compress AWS' margins. That pressure could also make it tougher for Amazon to expand its lower-margin retail business.

Rising interest rates will make it more expensive for Amazon to expand its AI infrastructure, reduce the market's demand for its cloud services, and compress its valuation. Inflation, which has been exacerbated by the Iran war and the Trump Administration's unpredictable tariffs, could also throttle the growth of its retail business (including Whole Foods).

Is Amazon a stock to buy, hold, or avoid?
I initially invested in Amazon in early 2016, and I only sold a quarter of my position after the stock quadrupled from my average purchase price. I've been holding the rest since then, and I don't plan to sell my shares because it's still one of the easiest ways to stay invested in the booming e-commerce, cloud, AI, and digital advertising markets.

If Amazon matches analysts' estimates through 2028, grows its EPS at a 15% CAGR through 2036, and trades at 25 times its current year's earnings, its stock would more than quadruple to nearly $1,120 over the next decade. That ride could be bumpy, but I plan to stick with Amazon -- even though it's already my top position and accounts for nearly 10% of my portfolio -- for the foreseeable future.

SummaryAmazon.com, Inc.'s AWS is projected to grow north of 40% annually through 2028, targeting a $1 trillion run rate in 5–10 years, underpinned by custom AI silicon and cloud leadership.Retail growth has slowed, but AWS and significant AI investments (Anthropic, OpenAI) provide strategic and financial upside, despite rising capex and debt.Key AMZN risks include heavy capital requirements, AI demand cyclicality, and agentic AI potentially eroding high-margin advertising revenue. krblokhin/iStock Editorial via Getty Images

Introduction Per my August article, Amazon.com, Inc. (AMZN) has a history of making great capital allocation decisions. We now have the Q3 '26 numbers and retail growth has slowed. AWS, however, is growing nicely

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, AAPL, ALAB, ASML, BABA, GOOG, GOOGL, META, MSFT, NFLX, NVDA, SHOP, TCEHY, TSLA, TSM, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Any material in this article should not be relied on as a formal investment recommendation. Never buy a stock without doing your own thorough research.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Jed Ellerbroek expects to see decelerating earnings growth for the AI trade as stocks across the board get pummeled. However, that's not to say Jed doesn't see strengths in tech.

AMD guided for about $13 billion of third-quarter revenue, and Wall Street expects almost exactly that. Its new Helios AI systems began shipping in September, so the fourth-quarter outlook will show how fast the ramp is going.

While Walmart launches its holiday giving campaign with a $1 million match for military families, a separate federal action is putting far more money back into shoppers' pockets, and the math between the two tells a complicated story about the…

Walmart (NASDAQ:WMT | WMT Price Prediction) launched its holiday giving drive this morning. From November 2 to November 30, shoppers on Walmart.com and the Walmart app can round up their checkout totals for Operation Homefront, which supports military and veteran families. Walmart will match those donations 2:1, up to $1 million.

“Giving back is one of the greatest holiday traditions, and that’s what A Season to Spark Good is all about,” said Erin Hogue, Senior Director at Walmart.

This is the fourth consecutive year of the partnership. Walmart says the round-up program has raised more than $7.9 million for the nonprofit since 2023. Operation Homefront CEO Alan Reyes said, “We are deeply grateful for four years of continued support through Spark Good.”

Refund Checks Tied to Walmart Money Counters Are Arriving Now On October 15, the FTC announced it is mailing more than $9.8 million to consumers harmed by Walmart’s alleged failure to stop scammers who took hundreds of millions of dollars from U.S. consumers through its wire transfer services. Walmart settled the charges in June 2025, agreeing to pay $10 million, Fox6 News reported. The FTC’s case centers on whether Walmart properly warned customers, trained employees and secured its in-store transfer services against outside fraudsters.

USA Today reported that consumers who completed an eligible transfer between January 2015 and December 2024 could receive a check and should cash it within 90 days of receipt. Anyone who wired money at a Walmart counter in that window should check their mail.

The refund pool is 9.8 times the match Walmart is advertising, and it tops everything the round-up program has raised for Operation Homefront since 2023.

Tariff Refunds Show Who Collects the Big Government Checks Walmart is also receiving money from Washington. On the August earnings call, CFO John David Rainey said the company was eligible for “approximately $2.9 billion of tariff refunds” and added:

“We’ve taken a disciplined approach to investing these funds back into customer experience and price leadership.”

Peers recorded similar gains. Target (NYSE:TGT) recognized a $994 million pretax tariff refund worth $1.65 per share. Costco (NASDAQ:COST) reported a $0.15 per diluted share benefit, partly reinvested in member values. Target CEO Michael Fiddelke pointed to price cuts:

“Over the past year, we’ve reduced prices on more than 10,000 frequently purchased items as part of our commitment to delivering outstanding value every day.”

Walmart CEO John Furner framed price as a trust issue: “Having the best prices across a basket of goods helps us continue to build trust with our customers and members.”

Walmart’s Scale Shrinks the $1 Million Match Walmart posted fiscal 2026 revenue of $713 billion and serves roughly 280 million customers weekly. The match cap equals about 0.00014% of that revenue. Its market cap of roughly $1.013 trillion exceeds Costco’s $460.6 billion and Target’s $71.7 billion.

Investors are paying up. Shares trade at $127.30, up 22.5% in the past month and 25.57% over a year, at roughly 45 times earnings. The next test is third-quarter guidance for adjusted EPS of $0.62-$0.64, along with whether this year’s round-up total moves past prior efforts.

Data Sources Walmart and Operation Homefront release: campaign dates, match terms, fundraising history, executive quotes and company scale. Contact [email protected] for any questions or corrections.

Nov 2 (Reuters) - Delta Air Lines (DAL.N), opens new tab CEO Ed Bastian said on Monday ​that Heathrow Airport's decision to ‌move the US carrier's operations to Terminal 4 from a terminal shared ​with Virgin Atlantic was "deeply disappointing ​and bad for airline consumers".

Here ⁠are some more details:

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Delta said ​in a statement on Monday it ​would pursue all available remedies to correct the decision and urged UK's Heathrow ​to reconsider

Bastian criticized the move ​as "short-sighted"

He added that Delta and Virgin Atlantic ‌had ⁠served millions of customers through their co-located operation in Terminal 3 for more than a decade

Delta ​and Virgin ​Atlantic ⁠provide UK travelers with a valuable competitive alternative ​across the Atlantic, Bastian said

"Separating ​our ⁠operation undermines years of investment and disregards the tightly integrated ⁠customer ​benefits that we offer ​in our co-located terminal"

Reporting by Anshuman Tripathy ​in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Listen to the audio version of this article (generated by AI).

AI’s meltdown week… Luke Lango’s take on the selloff… data centers are on tomorrow’s ballot… so is the drone budget… Luke’s Pennsylvania Plan
Friday put an exclamation point on a brutal month for the AI trade.

By the closing bell, the Nasdaq had fallen 2.9% on the day while the S&P 500 had lost 1.8% and the Dow had dropped 1%. Chip stocks took the brunt of it, with the Philadelphia Semiconductor Index (SOX) sinking more than 7%.

For October, the Nasdaq fell roughly 5.2% – its worst month since March 2025 – while the SOX did far worse, dropping more than 15%.

Two earnings reports did most of Friday’s damage…

Intel Corp. (INTC) was the biggest casualty, plunging nearly 29% – its steepest one-day drop on record – after forecasting fourth-quarter revenue of $15 billion to $16 billion, well short of the roughly $17 billion Wall Street expected. CEO Lip-Bu Tan said customers were “signaling a PC slowdown” tied to memory prices and availability.

Amazon.com Inc. (AMZN) fell too, though its story is more nuanced. Its cloud business, AWS, grew 39% to $46 billion, which is hardly a sign of weak AI demand. But Amazon spent $77.3 billion on capital expenditures in the quarter, more than double the $35 billion it spent a year earlier. Over the past 12 months, that spending has pushed Amazon’s free cash flow more than $42 billion into the red – a record.

That number gets at what’s really spooking investors…

Friday’s losses piled onto an already brutal stretch. Alphabet Inc. (GOOGL) shed nearly $500 billion in market value after its earnings report earlier in the week, one of the largest single-day wipeouts in stock market history.

Alphabet and Meta Platforms Inc. (META) now sit more than 20% below their highs, which puts both in bear-market territory.

The fear isn’t that AI is failing. It’s that the bill is coming due. JPMorgan estimates that the tech giants will spend roughly $900 billion on AI this year, and investors are increasingly asking when – or whether – that spending will produce a return worth the price.

So, how should AI investors read this?
Is this the beginning of the end for the AI trade, or a gift for patient investors?

Our technology expert Luke Lango, editor of Early Stage Investor, spent the past few days digging through the hyperscalers’ earnings line by line – and while he doesn’t dismiss the bear case, that’s not where he ends.

Here he is from Friday’s Daily Notes:

We get why that story is spooking people. Parts of it are even true…

[But] the AI trade isn’t broken. It’s between paychecks. The spending is front-loaded, the payoff is back-loaded, and the gap between the two is about to start closing, sooner than most people think.

The key question is whether all that spending earns a return. Luke ran the rough math on each new dollar of AI spending, measured against a cost of capital of roughly 9% to 10%. Microsoft Corp. (MSFT) is earning about 19%, Alphabet about 12%, Amazon about 9% to 10%, and Meta about 8%.

In other words, it’s an uneven story. Back to Luke:

Companies that sell compute are expanding margins, while companies that use it internally are lagging for now.

And the companies selling compute have customers lined up. Microsoft, Amazon, and Google are sitting on roughly $1.8 trillion of contracted cloud backlog between them. AWS growth accelerated for a sixth straight quarter, to its fastest pace in about five years. That isn’t the hyperscalers spending money. It’s customers signing up to pay them.

Luke is also upfront about where the real risk lies:

The bigger uncertainty is 2028, when slower hyperscaler spending growth leaves suppliers more dependent on buyers exposed to tighter financing.

As for Amazon, Luke thinks Wall Street is reading too much into one quarter. Part of the weakness was simple timing.

For example, moving Prime Day into the second quarter knocked about 850 basis points off third-quarter ad growth, and management expects ads to bounce back to high-teens growth as soon as this quarter. And for all the worry about Amazon’s borrowing, it covers its interest costs about 16 times over.

To be clear, Luke isn’t calling a bottom, but his big-picture takeaway is clear:

The market is grading a decade-long build-out on one noisy quarter at peak spending, and that’s short-sighted. Our game plan: for long-term investors, this is a dip to buy with confidence.

The headlines say the AI boom is running out of money. The numbers say it’s about to start making a lot more of it.

Interestingly, the very first item on Luke’s catalyst calendar for the next three months is tomorrow’s midterm elections. That’s where the AI trade faces a different kind of test – one that won’t be decided on Wall Street.

Data centers are on Tuesday’s ballot
That’s not a figure of speech.

According to Ballotpedia, voters in 10 states will weigh in on at least 41 local data-center measures tomorrow. Ohio alone accounts for more than half of them – 21 measures across 18 communities – with proposals ranging from outright bans to caps on how much power a facility can draw.

We’ve already gotten a preview of how these votes can go. Earlier this year, about 88% of voters in Monterey Park, California, backed a policy prohibiting data centers. In Augusta Township, Michigan, roughly 90% voted against a rezoning that would have made room for one.

The issue has also worked its way into some of the biggest races on the map…

In Ohio’s U.S. Senate race, Democrat Sherrod Brown has run ads calling Republican Sen. Jon Husted the “face of data centers,” a reference to tax breaks Husted backed as lieutenant governor. Data centers have also become a talking point in the Texas and Pennsylvania governors’ races. In Pennsylvania, Gov. Josh Shapiro has already tightened the rules for approving new projects.

And this isn’t a one-party story. A Washington Post analysis of candidates’ posts found that politicians in both parties have turned significantly more negative on data centers since 2024 – with Republicans souring even more than Democrats.

The driver is the electric bill. A 2026 Reuters/Ipsos survey, cited by the Brookings Institution, found that 77% of Americans worry data centers will raise their electricity rates. Nearly two-thirds said building data centers at a rapid pace isn’t a good thing.

To be clear, a zoning vote in a small Ohio town won’t decide whether Amazon builds its next campus. But taken together, tomorrow’s results will give us the first nationwide read on how quickly public sentiment is turning against the AI buildout.

That matters more today than it would have a few months ago. As we just saw with Amazon, Big Tech is already spending far more than its operations bring in to build this infrastructure. If local resistance means slower permits, pricier power, and fewer available sites, the payback period on that spending stretches even further. And that’s exactly the question Wall Street is wrestling with right now.

The other spending boom on tomorrow’s ballot
AI isn’t the only corner of the market with a lot riding on tomorrow.

The election will also decide which party controls Congress come January. And that has major implications for a spending package that hasn’t gotten much attention from investors.

Earlier this year, the Pentagon sent Congress a $1.5 trillion budget request for fiscal 2027. Most of it would go through the normal appropriations process. But $350 billion – about 23% of the total – was earmarked for a separate budget reconciliation package.

Reconciliation lets the majority party pass spending with a simple majority, sidestepping the Senate filibuster. The catch is that it depends on party-line votes. According to Air & Space Forces Magazine, if Democrats win control of either the House or the Senate, that path effectively closes.

So, what’s in the package?

Two items stand out…

The first is the Golden Dome, the administration’s proposed missile-defense shield. The second is $53.6 billion for an office most Americans have never heard of: the Defense Autonomous Warfare Group, or DAWG – the Pentagon’s new drone-warfare unit.

That drone figure is staggering. DAWG received about $226 million in fiscal 2026. Including a small slice of base-budget funding, its fiscal 2027 request totals $54.6 billion, roughly 240 times larger.

Why is the Pentagon going all-in on drones?
I wrote about this last spring in our Investing Insider newsletter, and one comparison has stuck with me ever since.

Iran mass-produces a drone called the Shahed, which it fires in swarms. Each one costs roughly $20,000 to build.

The Patriot interceptor the U.S. fires to shoot one Shahed down costs approximately $3 million to $4 million.

The math here just isn’t sustainable. It’s like using a Ferrari to destroy a used Honda Civic – except the Civics keep coming, a thousand at a time.

The economics of warfare have flipped. Cheap, autonomous, mass-produced systems are overwhelming expensive ones, and the Pentagon is racing to catch up.

It’s also racing to restock…

Since July, the Pentagon has signed multiyear contracts worth more than $100 billion combined at their full values to replace missile stockpiles drained by conflict in the Middle East. But industry executives say Congress still hasn’t appropriated the money, which limits how fast contractors can invest in new capacity.

What happens if the package stalls?
It wouldn’t reverse the shift. But it could change the speed – and who ends up paying for it.

Defense analysts have long viewed the post-election “lame duck” session as the likeliest window to pass the package. Tomorrow’s results will tell us whether that window is a starting point or a last chance. And even if reconciliation fails, Pentagon leadership has signaled it may cut expensive legacy programs to fund low-cost autonomous weapons anyway.

And this brings us back to Luke…

He believes America is entering its biggest military buildup since World War II. And he argues that government spending is only part of the story.

He points to a recent gathering organized by Sen. Dave McCormick of Pennsylvania that brought together Wall Street heavyweights, defense leaders, government officials, and emerging technology companies. Luke calls the public-private effort coming out of it the “Pennsylvania Plan” – and he believes it could accelerate the rebuilding of America’s arsenal regardless of how any single budget fight plays out.

Luke has just wrapped up a research project on this rearmament boom – including the five companies he believes are best positioned to profit across its three phases. He’s put everything together in a new video presentation, which you can watch right here, free of charge.

Wrapping up
Tomorrow isn’t just a political event – it’s a market event.

For AI, it’s a referendum on how much patience voters have for the buildout. For defense, it could decide how quickly hundreds of billions of dollars start flowing – and Luke’s new presentation explains where he believes that money is headed.

We’ll report back.

Have a good evening,

Jeff Remsburg

(Disclosure: I own GOOGL, AMZN, MSFT)

SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (NYSE: IIPR) ("IIP" or the "Company") announced today results for the third quarter ended September 30, 2026. Executive Chairman Remarks “We are pleased to report strong earnings with our AFFO per share up 7% compared to the second quarter, and are encouraged by the continued leasing momentum across our portfolio, reflecting our team's ongoing efforts to re-lease properties,” said Alan Gold, Executive Chairman of IIP. “At the sa.

BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile (NASDAQ: TMUS) today unveiled the next evolution of its brand and creative ecosystem, appointing Anomaly as strategic brand transformation partner, naming Highdive lead creative advertising agency and advancing AI-enabled creative production through its in-house T-Studios. The investments build on years of category-defining creative and marketing with partners that have helped make T-Mobile one of America's most distinctive brands. As the company's amb.

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, /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the three and nine months ended September 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 September 30, 2026:

Net income available to common stockholders was $403.9 million, or $0.43 per shareAdjusted Funds from Operations ("AFFO") increased 3.7% to $1.12 per share, compared to the three months ended September 30, 2025Invested $2.6 billion; our Pro-Rata Share was $2.2 billion at an Initial Weighted Average Cash Yield of 6.8%Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4xAchieved a Rent Recapture Rate of 103.5% on properties re-leasedExpanded our private capital platform into Europe through a strategic joint venture with KKR, supported by an initial €528.0 million investmentIssued $1.0 billion aggregate principal amount of 3.750% convertible senior notes due August 2031CEO Comments

"We delivered another quarter of strong operating performance, reflecting the resilience of Realty Income's business model, the quality of our portfolio, and the consistent execution of our team," said Sumit Roy, President and Chief Executive Officer of Realty Income. "As a result, we are raising our 2026 AFFO per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment volume target, which is supported by a well-funded balance sheet."

"We have deliberately expanded our sources of capital and global investment capabilities, positioning us to prudently allocate capital. This quarter, we funded investments at a realized leverage-neutral spread of approximately 170 basis points and have fully prefunded our equity needs for the remainder of the year. As economic and cost of capital volatility persists, we remain focused on capital allocation while staying true to our ethos of delivering reliable, income-oriented returns for our investors."

Select Financial Results

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

Three months ended

September 30,

Nine months ended

September 30,

2026

2025

2026

2025

Total revenue

$    1,621.6

$    1,470.6

$    4,718.0

$    4,261.4

Net income available to common stockholders(1)

$      403.9

$      315.8

$    1,059.7

$      762.5

Net income per share

$        0.43

$        0.35

$        1.13

$        0.84

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

$    1,041.0

$      981.1

$    3,031.2

$    2,874.5

FFO per share 

$        1.10

$        1.07

$        3.23

$        3.18

Normalized FFO(2)

$    1,043.7

$      994.4

$    3,046.8

$    2,888.4

Normalized FFO per share

$        1.10

$        1.09

$        3.25

$        3.19

AFFO(2)

$    1,061.1

$      992.0

$    3,140.8

$    2,889.2

AFFO per share

$        1.12

$        1.08

$        3.35

$        3.19

(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 Increase 

In September 2026, we announced the 116th consecutive quarterly dividend increase, which is the 136th increase since our listing on the New York Stock Exchange ("NYSE") in 1994. The annualized dividend amount as of September 30, 2026 was $3.258 per share. The amount of monthly dividends paid per share increased 0.7% to $0.813 in the three months ended September 30, 2026, as compared to $0.807 during the three months ended September 30, 2025, representing 72.6% of our diluted AFFO per share of $1.12 during the three months ended September 30, 2026.

Real Estate Portfolio Update

As of September 30, 2026, we owned or held interests in 15,536 properties, which were leased to 1,842 clients doing business in 96 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 8.5 years. Our portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of September 30, 2026, portfolio occupancy was 98.8% with 182 properties available for lease or sale, as compared to 98.8% as of June 30, 2026 and 98.7% as of September 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. The following summarizes our portfolio activity for the periods indicated below:

Changes in Occupancy

Three months ended September 30, 2026

Properties available for lease as of June 30, 2026

188

Lease expirations(1)

274

Re-leases to same client

(213)

Re-leases to new client

(9)

Vacant dispositions

(58)

Properties available for lease as of September 30, 2026

182

Nine months ended September 30, 2026

Properties available for lease as of December 31, 2025

173

Lease expirations(1)

1,074

Re-leases to same client

(818)

Re-leases to new client

(66)

Vacant dispositions

(181)

Properties available for lease as of September 30, 2026

182

(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 September 30, 2026, the new Annualized Base Rent on re-leased units was $67.6 million, as compared to the previous annual rent of $65.3 million on the same units, representing a Rent Recapture Rate of 103.5% on the re-leased units.

During the nine months ended September 30, 2026, the new Annualized Base Rent on re-leased units was $251.1 million, as compared to the previous annual rent of $243.5 million on the same units, representing a Rent Recapture Rate of 103.1% on the re-leased units.  Please see the Glossary for our definitions of Annualized Base Rent and Rent Recapture Rate.

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

Three months ended September 30, 2026

Nine months ended September 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

Real estate acquisitions

U.S. wholly-owned

$     780.1

$    780.1

9.3

83

$   2,039.8

$  2,039.8

10.1

218

U.S. Core Plus Fund

417.8

98.5

8.6

18

1,261.7

344.5

10.7

76

Europe wholly-owned

721.0

721.0

8.2

17

1,721.0

1,721.0

7.4

64

Non-wholly owned(2)

240.8

240.8

13.6

1

520.9

479.3

13.8

7

Total real estate acquisitions(3)

$   2,159.7

$  1,840.4

9.3

119

$   5,543.4

$  4,584.6

9.4

365

Initial Weighted Average Cash Yield(4)

6.6 %

6.5 %

Real estate properties under development

U.S. wholly-owned

$      29.7

$     29.7

16.9

27

$     104.2

$    104.2

17.0

31

Europe wholly-owned

51.3

51.3

14.7

20

102.6

102.6

14.3

20

Non-wholly owned(2)

64.2

62.7

8.9

16

229.6

226.8

8.7

16

Total real estate development(3)

$     145.2

$    143.7

12.5

63

$     436.4

$    433.6

12.0

67

Initial Weighted Average Cash Yield(4)

7.2 %

7.4 %

Credit investments(5)

U.S. wholly-owned

$      88.3

$     88.3

5.8

—

$   1,321.4

$  1,321.4

3.9

—

U.S. Core Plus Fund

20.0

4.7

6.0

—

20.0

4.7

6.0

—

Europe wholly-owned

134.4

134.4

2.8

—

479.5

479.5

3.3

—

Other wholly-owned

18.8

18.8

1.4

—

100.8

100.8

1.8

—

Total credit investments

$     261.5

$    246.2

3.9

—

$   1,921.7

$  1,906.4

3.7

—

Initial Weighted Average Cash Yield(4)

7.9 %

8.3 %

Total investments

$   2,566.4

$  2,230.3

8.9

182

$   7,901.5

$  6,924.6

7.7

432

Initial Weighted Average Cash Yield(4)

6.8 %

7.1 %

Supplementary Information(1):

Three months ended
September 30, 2026

Nine months ended
September 30, 2026

Total U.S. and other volume

$               1,290.2

$               4,301.6

Initial Weighted Average Cash Yield(4) - U.S. and other

6.5 %

7.1 %

Total Europe volume

$                 940.1

$               2,623.0

Initial Weighted Average Cash Yield(4) - Europe

7.1 %

7.0 %

Investment Grade Clients(6)

53 %

44 %

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

6.1 %

5.9 %

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

6.6 %

7.2 %

(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.

(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 September 30, 2026, the new properties are 31.0% retail, 57.3% industrial, and 11.7% data center property types based on Cash Income. For the nine months ended September 30, 2026, the new properties are 42.6% retail, 51.6% industrial, and 5.8% data center property types based on Cash Income. Starting in the third quarter of 2026, data centers are reported as a separate property type; year-to-date investment activity has been recast to conform to current presentation. 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 nine months ended September 30, 2026 includes $0.3 million and $4.1 million, respectively, received as settlement credits as the reimbursement of free rent periods. Please see the Glossary for our definitions of these metrics.

(5)

Represents various loan investments across the U.S., Europe, and Mexico, as well as a preferred equity investment held by the U.S. Core Plus Fund.

(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 14,443 properties under lease for the three and nine months ended September 30, 2026 and 2025 (dollars in millions):

Three months ended

September 30,

Nine months ended

September 30,

% Increase

2026

2025

2026

2025

Three Months

Nine Months

Same Store Rental Revenue

$    1,162.0

$    1,149.0

$    3,475.2

$    3,438.7

1.1 %

1.1 %

For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of September 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 for our definitions of Same Store Pool and Same Store Rental Revenue.

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

Three months ended September 30, 2026

Nine months ended September 30, 2026

Properties sold

182

359

Net sales proceeds

$                                           526.6

$                                           875.2

Gain on sales of real estate

$                                           113.9

$                                           187.8

Liquidity and Capital Markets

Liquidity
As of September 30, 2026, we had $5.4 billion total available liquidity at our Pro-Rata Share(1), comprised of the components summarized below (dollars in millions):

Cash and cash equivalents(2)

$                                            355.8

Availability under credit facilities(3)

5,485.1

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

1,090.1

Less: commercial paper borrowings

(1,540.7)

Total available liquidity at our Pro-Rata Share

$                                          5,390.3

(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 $368.5 million, plus our Pro-Rata Share of unconsolidated entities cash of $25.5 million, less adjustments allocable to noncontrolling interests of $38.2 million.

(3)

Represents our availability under the $5.5 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 September 30, 2026.

(4)

As of September 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 18.5 million shares of common stock, which have been executed at a weighted average forward price of $58.97 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 September 30, 2026, we raised $472.5 million of proceeds from the sale of common stock at a weighted average price of $60.49 per share, primarily through the settlement of 7.8 million shares of common stock pursuant to forward sale agreements under our ATM program. As of November 2, 2026, approximately 18.5 million shares of common stock subject to ATM forward sale agreements remain unsettled, representing approximately $1.1 billion in expected net proceeds and a weighted average initial gross price of $60.61 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.

In September 2026, we expanded our private capital platform into Europe through a strategic partnership with KKR. KKR invested €528.0 million for a 49% equity interest in a newly formed, euro-denominated joint venture comprising 54 stabilized net lease properties across four European countries.

In August 2026, we issued $1.0 billion principal amount of 3.750% convertible senior notes due August 2031 in a private offering, resulting in net proceeds of $983.2 million. We used approximately $33.2 million of the net proceeds to enter into capped call transactions with a cap price of $83.55 per share of common stock, which represented a premium of 35.0% above the closing price of our common stock of $61.89 per share on the NYSE on August 11, 2026. We also used approximately $188.7 million of the net proceeds to repurchase approximately 3.0 million shares of our common stock concurrently with the pricing of the offering.

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 expanded our global commercial paper programs to a total combined capacity of $5.5 billion, upsized from the prior $3.0 billion combined capacity.

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%.

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

Revised 2026
Guidance

Prior 2026
Guidance(1)

YTD Actuals at

September 30, 2026

Net income per share(2)

$1.55 - $1.56

$1.59 - $1.60

$1.13

AFFO per share

$4.45 - $4.46

$4.44 - $4.45

$3.35

Same store rent growth

1.1% - 1.3%

1.1% - 1.3%

1.1 %

Occupancy

Above 98.5%

Approx 98.5%

98.8 %

Cash G&A expenses (% of total Gross Asset Value)(3)(4)

21 - 22 bps

21 - 22 bps

16 bps

Property expenses (non-reimbursable) (% of total revenue)(5)

1.3% - 1.5%

Approx 1.5%

1.3 %

Income tax expenses

$100 - $110 million

$100 - $110 million

$76 million

Investment volume (at 100%)

$10.0 billion

$10.0 billion

$7.9 billion

Lease termination income

$45 - $50 million

$45 - $50 million

$45 million

(1) As issued on August 5, 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) Cash G&A represents 'General and administrative' expenses as presented in our consolidated statements of income, less share-based compensation costs.

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

(5) Total revenue excludes client reimbursements.

Summarized below is a reconciliation of estimated net income per share to estimated AFFO per share for the full year guidance:

2026 Per Share
Guidance

YTD Actuals at

September 30, 2026

Net income per share

$1.55 - $1.56

$1.13

Real estate depreciation

$2.73

$2.04

Provisions for impairment of real estate, gain on sales of real estate, and non-cash credit losses(1)

$0.14

$0.14

Straight-line rent and amortization of above and below-market leases, net

$(0.11)

$(0.09)

Amortization of deferred financing costs

$0.08

$0.06

Amortization of share-based compensation

$0.04

$0.03

Merger, transaction, and other costs, net

$0.02

$0.02

Other adjustments

$0.00

$0.02

AFFO per share

$4.45 - $4.46

$3.35

(1) Amounts represent year-to-date actual results. The company does not forecast impairment, gain on sales of real estate, and non-cash credit losses.

Conference Call Information
In conjunction with the release of our operating results, we will host a conference call on November 2, 2026 at 2:00 p.m. PST 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 2991704. The telephone replay will be available through November 9, 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 nine months ended September 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 September 30, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the United Kingdom ("U.K."), and eight other countries in Europe. We are known as "The Monthly Dividend Company®" and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since our founding, we have declared 676 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 32 consecutive years. Additional information about the company can be found at www.realtyincome.com. Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (www.realtyincome.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 real estate or 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; 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

September 30,

Nine months ended

September 30,

2026

2025

2026

2025

REVENUE

Rental (including reimbursements)(1)

$   1,483,799

$   1,386,502

$   4,351,083

$   4,037,747

Interest income on financing receivables

32,248

32,635

96,402

97,652

Interest and dividend income on loans and preferred equity
     investments

104,982

51,058

263,609

125,274

Other

553

357

6,926

762

Total revenue

1,621,582

1,470,552

4,718,020

4,261,435

EXPENSES

Depreciation and amortization

647,555

631,981

1,922,507

1,888,765

Interest

333,564

294,482

937,587

846,680

Property (including reimbursements)

122,393

106,621

351,675

320,724

General and administrative

54,315

55,039

170,805

148,412

Provisions for impairment of real estate

111,645

75,391

255,995

315,063

Provisions for credit losses on loans and financing receivables

14,212

11,581

60,573

31,861

Merger, transaction, and other costs, net

2,694

13,343

15,539

13,953

Total expenses

1,286,378

1,188,438

3,714,681

3,565,458

Gain on sales of real estate

113,865

49,107

187,767

110,210

Foreign currency and derivative loss, net

(2,513)

(2,818)

(28,357)

(9,751)

Equity in earnings of unconsolidated entities

2,927

3,080

7,800

10,706

Other income, net

6,225

10,015

28,610

24,551

Income before income taxes

455,708

341,498

1,199,159

831,693

Income taxes

(23,568)

(23,824)

(75,571)

(63,546)

Net income

432,140

317,674

1,123,588

768,147

Net income attributable to noncontrolling interests

(28,198)

(1,903)

(63,925)

(5,642)

Net income available to common stockholders

$     403,942

$     315,771

$   1,059,663

$     762,505

Funds from operations available to common stockholders (FFO)

$   1,041,026

$     981,050

$   3,031,227

$   2,874,453

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

$   1,043,720

$     994,393

$   3,046,766

$   2,888,406

Adjusted funds from operations available to common stockholders
     (AFFO)

$   1,061,097

$     991,988

$   3,140,770

$   2,889,195

Amounts available to common stockholders per common share:

Net income per common share, basic and diluted

$          0.43

$          0.35

$          1.13

$          0.84

FFO per common share:

Basic

$          1.10

$          1.07

$          3.24

$          3.18

Diluted

$          1.10

$          1.07

$          3.23

$          3.18

Normalized FFO per common share:

Basic

$          1.11

$          1.09

$          3.25

$          3.20

Diluted

$          1.10

$          1.09

$          3.25

$          3.19

AFFO per common share:

Basic

$          1.12

$          1.09

$          3.35

$          3.20

Diluted

$          1.12

$          1.08

$          3.35

$          3.19

Cash dividends paid per common share

$       0.8130

$       0.8070

$       2.4345

$       2.4085

(1)

Includes client reimbursements of $104.9 million and $82.5 million for the three months ended September 30, 2026 and 2025, respectively, and $293.6 million and $257.3 million for the nine months ended September 30, 2026 and 2025, respectively. Additionally, includes reserves to rental revenue, exclusive of non-cash reserves, of $2.5 million and $4.0 million for the three months ended September 30, 2026 and 2025, respectively, and $13.5 million and $21.1 million for the nine months ended September 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

September 30,

Nine months ended

September 30,

2026

2025

2026

2025

Net income available to common stockholders

$      403,942

$    315,771

$     1,059,663

$       762,505

Depreciation and amortization

647,555

631,981

1,922,507

1,888,765

Depreciation of furniture, fixtures and equipment

(827)

(711)

(2,416)

(1,853)

Provisions for impairment of real estate

111,645

75,391

255,995

315,063

Gain on sales of real estate

(113,865)

(49,107)

(187,767)

(110,210)

Proportionate share of adjustments for unconsolidated entities

13,281

9,003

31,780

24,343

FFO adjustments allocable to noncontrolling interests

(20,705)

(1,278)

(48,535)

(4,160)

FFO available to common stockholders

$    1,041,026

$    981,050

$     3,031,227

$     2,874,453

FFO allocable to dilutive noncontrolling interests

2,420

2,346

6,797

7,188

Diluted FFO

$    1,043,446

$    983,396

$     3,038,024

$     2,881,641

FFO available to common stockholders

$    1,041,026

$    981,050

$     3,031,227

$     2,874,453

Merger, transaction, and other costs, net

2,694

13,343

15,539

13,953

Normalized FFO available to common stockholders

$    1,043,720

$    994,393

$     3,046,766

$     2,888,406

Normalized FFO allocable to dilutive noncontrolling interests

2,420

2,346

6,797

7,188

Diluted Normalized FFO

$    1,046,140

$    996,739

$     3,053,563

$     2,895,594

FFO per common share:

Basic

$           1.10

$        1.07

$           3.24

$           3.18

Diluted

$           1.10

$        1.07

$           3.23

$           3.18

Normalized FFO per common share:

Basic

$           1.11

$        1.09

$           3.25

$           3.20

Diluted

$           1.10

$        1.09

$           3.25

$           3.19

Distributions paid to common stockholders

$      768,505

$    737,859

$     2,283,316

$     2,177,133

FFO after distributions

$      272,521

$    243,191

$       747,911

$       697,320

Normalized FFO after distributions

$      275,215

$    256,534

$       763,450

$       711,273

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

Basic

944,261

913,949

936,219

902,935

Diluted

948,797

917,869

940,928

906,692

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.
Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no
impact on previously reported AFFO.

Three months ended

September 30,

Nine months ended

September 30,

2026

2025

2026

2025

Net income available to common stockholders

$      403,942

$    315,771

$    1,059,663

$      762,505

Cumulative adjustments to calculate Normalized FFO(1)

639,778

678,622

1,987,103

2,125,901

Normalized FFO available to common stockholders

1,043,720

994,393

3,046,766

2,888,406

Debt-related non-cash items:

Amortization of net debt discounts and deferred financing costs

21,656

9,001

54,133

23,532

Amortization of acquired interest rate swap value

1,531

2,251

4,592

9,517

Capital expenditures from operating properties:

Leasing costs and commissions

(2,392)

(1,754)

(5,690)

(4,619)

Recurring capital expenditures

(27)

(42)

(197)

(282)

Other non-cash items:

Provisions for credit losses on loans and financing receivables

14,212

11,581

60,573

31,861

Amortization of share-based compensation

6,461

7,719

27,112

21,728

Straight-line rent and expenses, net

(50,732)

(43,474)

(129,778)

(117,512)

Amortization of above and below-market leases, net

17,742

10,462

48,505

32,075

Deferred tax expense

—

3,829

1,718

4,138

Executive severance charge

1,473

—

3,319

—

Derivative and unrealized foreign currency loss (gain), net(2)

4,202

(1,941)

22,157

(730)

Other adjustments(3)

2,230

475

5,798

2,907

Proportionate share of adjustments for unconsolidated entities

(987)

(650)

(1,761)

(2,291)

Adjustments allocable to noncontrolling interests

2,008

138

3,523

465

AFFO available to common stockholders

$    1,061,097

$    991,988

$    3,140,770

$    2,889,195

AFFO allocable to dilutive noncontrolling interests

2,394

2,331

7,166

7,133

Diluted AFFO

$    1,063,491

$    994,319

$    3,147,936

$    2,896,328

AFFO per common share:

Basic

$           1.12

$        1.09

$          3.35

$          3.20

Diluted

$           1.12

$        1.08

$          3.35

$          3.19

Distributions paid to common stockholders

$      768,505

$    737,859

$    2,283,316

$    2,177,133

AFFO after distributions

$      292,592

$    254,129

$      857,454

$      712,062

Weighted average number of common shares used for AFFO:

Basic

944,261

913,949

936,219

902,935

Diluted

948,797

917,869

940,928

906,692

(1)

See Normalized FFO calculations on page 10 for reconciling items.

(2)

Represents non-cash foreign currency losses (gains) from remeasurement to USD and mark-to-market adjustments on investments and derivatives that are non-cash in nature.

(3)

Includes primarily obligations related to financing lease liabilities.

HISTORICAL FFO AND AFFO

(in thousands, except per share amounts) (unaudited)

For the three months ended September 30,

2026

2025

2024

2023

2022

Net income available to common stockholders

$    403,942

$    315,771

$    261,781

$    233,473

$    219,567

Depreciation and amortization, net of furniture,
     fixtures and equipment

646,728

631,270

601,667

494,749

418,505

Provisions for impairment of real estate

111,645

75,391

33,151

16,808

1,650

Gain on sales of real estate

(113,865)

(49,107)

(50,563)

(7,572)

(42,883)

Proportionate share of adjustments for
     unconsolidated entities

13,281

9,003

9,652

—

717

FFO adjustments allocable to noncontrolling interests

(20,705)

(1,278)

(762)

(1,312)

(402)

FFO available to common stockholders

$  1,041,026

$    981,050

$    854,926

$    736,146

$    597,154

Merger, transaction, and other costs, net

2,694

13,343

8,610

2,884

3,746

Normalized FFO available to common stockholders

$  1,043,720

$    994,393

$    863,536

$    739,030

$    600,900

FFO per diluted share

$         1.10

$         1.07

$         0.98

$         1.04

$         0.97

Normalized FFO per diluted share

$         1.10

$         1.09

$         0.99

$         1.04

$         0.97

AFFO available to common stockholders

$  1,061,097

$    991,988

$    915,572

$    721,370

$    603,566

AFFO per diluted share

$         1.12

$         1.08

$         1.05

$         1.02

$         0.98

Cash dividends paid per common share

$      0.8130

$      0.8070

$      0.7890

$      0.7665

$      0.7425

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

948,797

917,869

873,974

711,338

619,201

For the nine months ended September 30,

2026

2025

2024

2023

2022

Net income available to common stockholders

$  1,059,663

$    762,505

$    648,281

$    653,904

$    642,143

Depreciation and amortization, net of furniture,
     fixtures and equipment

1,920,091

1,886,912

1,787,068

1,417,665

1,230,737

Provisions for impairment of real estate

255,995

315,063

208,552

59,801

16,379

Gain on sales of real estate

(187,767)

(110,210)

(92,290)

(19,675)

(93,611)

Proportionate share of adjustments for
     unconsolidated entities

31,780

24,343

20,706

(465)

12,812

FFO adjustments allocable to noncontrolling interests

(48,535)

(4,160)

(2,575)

(2,808)

(1,075)

FFO available to common stockholders

$  3,031,227

$  2,874,453

$  2,569,742

$  2,108,422

$  1,807,385

Merger, transaction, and other costs, net

15,539

13,953

105,468

4,532

12,994

Normalized FFO available to common stockholders

$  3,046,766

$  2,888,406

$  2,675,210

$  2,112,954

$  1,820,379

FFO per diluted share

$         3.23

$         3.18

$         2.99

$         3.09

$         2.99

Normalized FFO per diluted share

$         3.25

$         3.19

$         3.11

$         3.10

$         3.01

AFFO available to common stockholders

$  3,140,770

$  2,889,195

$  2,699,517

$  2,043,836

$  1,767,392

AFFO per diluted share

$         3.35

$         3.19

$         3.14

$         2.99

$         2.92

Cash dividends paid per common share

$      2.4345

$      2.4085

$      2.3350

$      2.2830

$      2.2230

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

940,928

906,692

861,300

683,925

605,958

ADJUSTED EBITDAre

(dollars in thousands) (unaudited)

Three months ended

September 30, 2026

Net income

$               432,140

Interest

333,564

Income taxes

23,568

Depreciation and amortization

647,555

Executive severance charge

1,473

Provisions for impairment of real estate

111,645

Provisions for credit losses on loans and financing receivables

14,212

Merger, transaction, and other costs, net

2,694

Gain on sales of real estate

(113,865)

Foreign currency and derivative loss, net

2,513

Equity in earnings of unconsolidated entities

(2,927)

Adjusted EBITDAre(1)

$             1,452,572

Annualized Adjusted EBITDAre(1)

$             5,810,288

Annualized Pro Forma Adjustments

$                32,601

Annualized Pro Forma Adjusted EBITDAre(1)

$             5,842,889

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

$           31,738,055

Less: Cash and cash equivalents

(368,534)

Net Debt

$           31,369,521

Less: Expected proceeds from unsettled forward equity(2)

(1,090,080)

Net Debt - Inclusive of Unsettled ATM Forward Equity

$           30,279,441

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 September 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 18.5 million shares of common stock, which have been executed at a weighted average forward price of $58.97 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

September 30, 2026

Annualized pro forma adjustments from investments acquired or stabilized

$                80,896

Annualized pro forma adjustments from investments disposed

(48,295)

Annualized Pro Forma Adjustments

$                32,601

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 definitions and an explanation of how we utilize these metrics.
  

Nine months ended September 30,

2026

2025

Net cash provided by operating activities

$                   2,945,560

$                   2,791,320

Changes in net working capital

172,226

62,233

Capital expenditures(1)

(87,918)

(57,716)

Distributions paid to common stockholders

(2,283,316)

(2,177,133)

Distributions paid to noncontrolling interests

(53,276)

(8,992)

Merger, transaction, and other costs, net

15,539

13,953

Adjusted Free Cash Flow

$                     708,815

$                     623,665

Annualized Adjusted Free Cash Flow

$                     945,087

$                     831,553

(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

September 30,

Nine months ended

September 30,

2026

2025

2026

2025

Rental revenue (including reimbursements)

$     1,483,799

$     1,386,502

$     4,351,083

$     4,037,747

Constant currency adjustment(1)

(4,156)

(4,804)

(14,007)

5,312

Straight-line rent and other non-cash adjustments

(6,293)

(7,512)

(1,928)

(7,747)

Contractually obligated reimbursements by our clients

(104,360)

(82,392)

(285,682)

(253,467)

Revenue from excluded properties(2)

(174,572)

(97,905)

(444,326)

(251,816)

Other excluded revenue(3)

(5,155)

(28,806)

(47,267)

(39,569)

Revenue from unconsolidated entities(4)

37,781

28,707

91,900

83,577

Revenue attributable to noncontrolling interests(5)

(65,038)

(44,745)

(174,613)

(135,298)

Same Store Rental Revenue

$     1,162,006

$     1,149,045

$     3,475,160

$     3,438,739

(1)

For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of September 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 interests based on their pro-rata ownership.

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts) (unaudited)

September 30, 2026

December 31, 2025

ASSETS

Real estate held for investment, at cost:

Land

$                    19,119,185

$                    18,368,029

Buildings and improvements

46,719,476

43,824,410

Total real estate held for investment, at cost

65,838,661

62,192,439

Less accumulated depreciation and amortization

(9,808,131)

(8,778,536)

Real estate held for investment, net

56,030,530

53,413,903

Real estate and lease intangibles held for sale, net

194,986

91,784

Cash and cash equivalents

368,534

434,842

Accounts receivable, net

1,217,817

1,053,487

Lease intangible assets, net

5,584,800

5,717,241

Goodwill

4,932,199

4,932,199

Investment in loans and financing receivables, net

5,030,205

3,271,002

Investment in unconsolidated entities

1,617,384

1,256,456

Other assets, net

2,973,959

2,624,698

Total assets

$                    77,950,414

$                    72,795,612

LIABILITIES AND EQUITY

Distributions payable

$                        265,518

$                        255,171

Accounts payable and accrued expenses

1,094,942

1,060,969

Lease intangible liabilities, net

1,463,929

1,493,958

Other liabilities

1,062,753

1,066,809

Revolving credit facilities and commercial paper

2,127,928

2,023,414

Term loans, net

2,772,340

1,701,615

Mortgages payable, net

36,745

37,761

Notes payable, net

26,451,863

25,031,947

Total liabilities

$                    35,276,018

$                    32,671,644

Redeemable noncontrolling interests

$                         71,745

$                              —

Stockholders' equity:

Common stock and paid in capital, par value $0.01 per share,
1,300,000 shares authorized, 950,964 and 933,975 shares issued
and outstanding as of September 30, 2026 and December 31, 2025,
respectively

$                    51,149,067

$                    49,861,660

Distributions in excess of net income

(11,761,979)

(10,527,984)

Accumulated other comprehensive income

104,861

105,019

Total stockholders' equity

$                    39,491,949

$                    39,438,695

Noncontrolling interests

3,110,702

685,273

Total equity

$                    42,602,651

$                    40,123,968

Total liabilities and equity

$                    77,950,414

$                    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 and distributions paid to common stockholders and noncontrolling interests, plus merger, transaction, and other costs, net, and adjusted for 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.

Rent Recapture Rate is calculated by comparing our Pro-Rata Share of new cash rents to our Pro-Rata Share of prior cash rents for renewals to the same client and leases to new clients with at least 12 months of new term. New cash rents represent the first month of contractual monthly base rent of the new lease or renewal, multiplied by 12. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. Prior cash rents represent the last month of contractual monthly base rent for the most recent expiring lease, multiplied by 12.

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 September 30, 2026 to same store rental revenue for the three and nine months ended September 30, 2026 and 2025.

SOURCE Realty Income Corporation

MIAMI--(BUSINESS WIRE)--Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the third quarter ended September 30, 2026. “The Sovereign AI movement is imposing the most dramatic dichotomy between haves and have nots that I have witnessed in 30 years of business. Every institution—government and commercial—is rapidly being forced, voluntarily or not, into one of these two categories,” said Alex Karp, Co-Founder and Chief Executive Officer of Palantir Technologies. “Witn.

The U.S. commercial business brought in more money than the U.S. government segment in the third quarter.

Palantir Technologies (PLTR -3.13%) grew third-quarter revenue 96% to about $2.31 billion and raised its full-year outlook again. Shares were up about 2% in after-hours trading. The business is turning growth into profit at a rare pace. But new contract signings barely grew, so future growth depends on signings picking up.

Key numbersRevenue: $2.31 billion, up 96% from $1.18 billion a year ago.U.S. commercial revenue: $984 million, up 148% from a year ago.GAAP operating margin: 47%, up from 33% a year ago.Full-year revenue guidance: Raised to about $8.53 billion, or 91% growth.What it meansU.S. commercial revenue passed U.S. government revenue for the first time, with government at $953 million. Government contracts are big and sticky, but budgets move slowly. Commercial customers can expand fast once one deployment pays off. That speeds growth but adds exposure to corporate spending cycles.

Profit outran sales because most of Palantir's costs don't rise with revenue. Operating expenses grew about 46% while revenue nearly doubled. Software costs little to deliver once it's built, so most of each new dollar falls to profit.

The soft spot is new business. Palantir closed $2.92 billion in total contract value, up just 6% from a year ago. Revenue is recognized from contracts already signed. When signings grow far slower than sales, the company works through its backlog faster than it refills it. Big deals are lumpy, so one soft quarter isn't a trend yet.

What to watch nextThe key number is U.S. commercial remaining deal value, which rose just 4% from last quarter while U.S. commercial revenue rose 29%. If that backlog doesn't speed up, today's growth rate will be hard to hold.

David Kretzmann has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy.

Palantir Technologies Inc (PLTR) nearly doubled its quarterly revenue – but investors have a more revealing question to consider: is the company “replenishing” its growth engine as quickly as it is collecting sales? The software maker reported Q3 revenue of $2.313 billion after Monday's closing bell, up roughly 96% from a year earlier and above the $2.18 billion analysts expected.