Realty Income Stock Earnings Reports

Realty Income reported a strong start to 2026 with AFFO per share of $1.13 (up 6.6% YoY) and approximately $2.8 billion of investments in Q1 (7.1% initial cash yield). Management increased full-year investment guidance to $9.5 billion (100% basis) and raised AFFO per share guidance to $4.41–$4.44, as well as raised expected lease termination income to $45–$50 million. The company continues to diversify its capital base via three private-capital initiatives: a $1.7 billion cornerstone raise for a Perpetual Life U.S. Core+ fund, a programmatic build-to-suit/debt JV with GIC (including U.S. and Mexico), and a $1 billion equity investment from Apollo into a long-duration retail portfolio. Realty Income also deployed roughly $1 billion into credit and structured investments (including loans tied to logistics and a data-center development), explaining these are often shorter-duration, development-to-ownership plays. Liquidity stood at about $3.9 billion pro rata (with additional forward equity post-quarter), net debt to pro forma EBITDA was 5.2x (4.9x inclusive of forward equity), and the company issued $800 million of 4.75% notes due 2033 (blended euro swap yield 4.44%). They established a 10-year unsecured term loan via a municipal prepay structure ($694 million) with an affiliate of Goldman Sachs to access new lower-cost debt pools. Portfolio operations remain healthy with robust occupancy, strong recapture/renewal outcomes and outsized lease termination income of $40.2 million in Q1; management lowered its credit loss outlook to ~40 bps of rental revenue. Europe remains a differentiated sourcing advantage, while the U.S. market is competitive for small assets but offers structured opportunities where Realty Income’s platform adds value. Overall, the company emphasizes disciplined underwriting, selective deployment, and using private capital vehicles to broaden the buy box, generate fee income, and support long-term per-share value creation.