Realty Income Reports AFFO of $1.12 per Share, Raises 2026 Outlook
Key Facts
Realty Income Corporation, listed on the New York Stock Exchange under the ticker O, reported on November 2 results for the third quarter ended September 30, 2026, posting revenue of $1,621.6 million compared with $1,470.6 million a year earlier. Net income available to common stockholders was $403.9 million, or $0.43 per share, compared with $315.8 million and $0.35 per share in the third quarter of 2025. AFFO, the operating measure, rose 3.7% to $1.12 per share from $1.08 a year earlier, and totaled $1,061.1 million compared with $992.0 million. Investing.com reported that earnings per share of $0.43 exceeded its estimate of $0.41 by $0.02, and that revenue of $1.62 billion compared with an estimate of $1.43 billion. These figures distinguish accounting net income from AFFO, the operating measure the company reported per share, and the company said it grew 3.7% year over year.
The company raised its 2026 AFFO guidance range to $4.45–4.46 per share, from a previous range of $4.44–4.45, and kept its annual investment volume target at $10.0 billion. The revision follows a previous range of $4.41 to $4.44 per share in the second quarter, which was then revised in August to $4.44–4.45. CEO Sumit Roy said the company funded its investments during the quarter at a leverage-neutral spread of approximately 170 basis points, adding that it had “pre-funded its equity needs for the remainder of the year.” The company’s statement links the updated AFFO guidance to continued execution of its investment program, while holding its annual investment volume target steady. The successive guidance revisions also put the third-quarter range above the previous range announced in the second quarter.
Realty Income invested a total of $2,566.4 million during the quarter, of which its pro rata share was $2,230.3 million. The investments generated a weighted average initial cash yield of 6.8%, according to the earnings release. The company expanded in Europe through a partnership announced in September with KKR, which invested €528.0 million for a 49% stake in a new joint venture. The venture comprises 54 net lease properties in four European countries. The transaction illustrates one way the company uses partnerships to finance its real estate portfolio, alongside the investment volume it recorded during the quarter.
The company’s portfolio occupancy was 98.8% on September 30, 2026, the same level recorded on June 30 and above 98.7% on September 30, 2025. The portfolio comprised 15,536 owned or partially owned properties leased to 1,842 clients operating in 96 industries. As for distributions, the annualized amount declared per share was $3.258 on September 30, 2026. Monthly distributions paid during the quarter also rose 0.7% to $0.813 per share. Together, these figures reflect occupancy, the diversity of the client base and continued distribution growth during the period.
Realty Income shares closed at $57.61 on November 2, the day the earnings report was published, according to Investing.com. The site reported that the shares fell 7.62% over the previous three months and 1.01% over the previous twelve months. The company scheduled a call to discuss the results for November 2, 2026, at 2:00 p.m. Pacific Time, and made a replay available through November 9. This completes the follow-up schedule for the announcement published on the day of the call, while the closing price and changes reported by Investing.com show the stock’s performance over the specified periods.