Three U.S. Real Estate Companies Raise 2026 Outlooks After Strong Quarterly Results
Key Facts
Realty Income, Empire State Realty Trust and Ryman Hospitality Properties raised their 2026 financial outlooks after third-quarter results, reflecting mixed operating performance across commercial leases, offices and hospitality. Realty Income said it raised its annual adjusted funds from operations (AFFO) per-share guidance range to $4.45–$4.46, while reaffirming its investment target of $10.0 billion. Empire State Realty Trust raised its core funds from operations per diluted share range to $0.77–$0.80, compared with $0.75–$0.79 in its July update. Ryman said it raised the midpoints of its 2026 guidance ranges and expects AFFO per diluted share to grow about 10% at the midpoint. The revisions came with quarterly results that showed positive indicators in revenue, leasing and bookings, alongside specific weaknesses in some activities.
Ryman posted record consolidated revenue of $655.8 million in the third quarter of 2026, including $501.8 million from its hospitality segment and $93.0 million from its entertainment segment, according to its filing. The company said higher meeting attendance and increased spending on food, beverage and audio-visual services supported performance. It also booked more than 653,000 future confirmed room nights at comparable hospitality hotels during the quarter, at an estimated average daily rate of about $293, a third-quarter record. The company said momentum in group room revenue for 2027 and 2028 improved compared with the previous quarter. By contrast, it partly attributed a cut to its entertainment segment outlook to the closure of the General Jackson Showboat, showing that the overall guidance increase came alongside a downward revision in one of its businesses.
At Realty Income, total revenue rose to $1,621.6 million in the third quarter of 2026, from $1,470.6 million in the same period of 2025. AFFO per share increased 3.7% year over year to $1.12, the metric the company cited in raising its annual guidance range. Portfolio occupancy was 98.8% on September 30, 2026, compared with 98.7% on September 30, 2025, after reaching 98.8% on June 30, 2026. The guidance increase therefore comes amid stable occupancy and improved revenue and adjusted funds from operations. The company said in its filing: "We are raising our 2026 AFFO per share guidance to $4.45–$4.46, while reaffirming our investment volume target of $10.0 billion."
Empire State Realty Trust’s results showed improvement in commercial leasing, with the company signing leases for 189,477 square feet in the third quarter of 2026, including 170,608 square feet of office leases. Blended office portfolio rent spreads were +9.9%, marking the twenty-first consecutive quarter of positive spreads. On September 30, the commercial portfolio was 95.6% leased and 92.3% occupied. The company recorded net income of $0.02 per share and Core FFO of $0.20 per share during the quarter. It also sold 1359 Broadway for $217.5 million after the quarter ended and repurchased $85.8 million of shares through November 2; net operating income at the Empire State Building Observatory was about $15.6 million for the quarter.
The observatory data point to a weaker aspect of ESRT’s performance: the company kept its 2026 observatory net operating income framework at $55 million, but said visits remained weak. That weakness contrasts with continued positive rent spreads and a higher commercial leasing rate, painting an operating picture that combines strength in office activity with pressure on tourist visits. At Ryman, meanwhile, record future bookings and improved group room momentum point to support for hospitality demand in coming periods, according to the company. Ryman expects the Gaylord Opryland meeting space expansion to be completed by mid-2027, while it aims to complete the development of Category 10 in Orlando by mid-2028. These projects mark future operating milestones in the company’s plans, while its results ahead remain tied to trends in bookings and spending on meetings and hospitality.
Among upcoming economic releases, the U.S. residential construction report is due on November 18, 2026, and includes building permits and housing starts for October, according to the U.S. Census Bureau. It is scheduled for release at 8:30 a.m. Eastern time. The report provides indicators of residential construction activity, but does not directly measure the performance of commercial real estate investment trusts or the results of office and hospitality companies. It therefore forms part of a broader watch on the U.S. real estate sector, while the three companies’ outlooks reflect the conditions of their specific portfolios and businesses. The companies’ shares closed on November 13 at $58.82 for Realty Income, $5.30 for Empire State Realty Trust and $135.13 for Ryman Hospitality Properties.