SAN DIEGO, May 6, 2026 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the three months ended March 31, 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 March 31, 2026:
- Net income available to common stockholders was $311.8 million, or $0.33 per share
- Adjusted Funds from Operations ("AFFO") per share increased 6.6% to $1.13 per share, compared to the three months ended March 31, 2025
- Invested $2.8 billion; our Pro-Rata Share was $2.6 billion at an initial weighted average cash yield of 7.1%
- Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.2x
- Achieved a rent recapture rate of 103.4% on properties re-leased
- Formed a strategic partnership with Apollo, with initial investment of $1.0 billion in existing portfolio of retail assets
Events subsequent to March 31, 2026:
- In April 2026, issued $800 million of 4.750% senior unsecured notes due April 2033. In connection with the offering, we executed a $500 million U.S. Dollar-to-Euro 7-year cross currency swap, resulting in approximately €436 million of proceeds and a blended coupon rate of 4.16%.
CEO Comments
"Our first quarter results underscore the strength and resiliency of our global investment and operating platforms. Importantly, we demonstrated significant progress towards a key strategic goal of diversifying our sources of permanent equity beyond the public markets. These new private capital vehicles allow us to grow with deep and stable pockets of capital, enhancing our financial returns for shareholders and expanding our ability to invest in an ever-broadening range of high-quality net lease opportunities and geographies," said Sumit Roy, Realty Income's Chief Executive Officer. "The partnerships with Apollo and GIC, together with the completion of the $1.7 billion cornerstone capital raise for our U.S. Core Plus fund during the quarter, represent very meaningful advancements in our private capital strategy and establish new programmatic capital relationships with leading institutions.
During the quarter, we invested approximately $2.8 billion, $2.6 billion of which was our share, and our pipeline remains very active. As a result, we are increasing our full-year investment guidance to $9.5 billion from $8 billion.
Given the strong momentum across the business, we are increasing our 2026 AFFO per share guidance range to $4.41 to $4.44, reflecting projected annual per share growth of 3.0% to 3.7%. Our outlook is a testament to the unmatched scale, track record and operating capabilities of our global net lease enterprise."
Select Financial Results
The following summarizes our select financial results (dollars in millions, except per share data):
Three months ended | ||||
2026 | 2025 | |||
Total revenue | $ | 1,548.7 | $ | 1,380.5 |
Net income available to common stockholders (1) | $ | 311.8 | $ | 249.8 |
Net income per share | $ | 0.33 | $ | 0.28 |
Funds from operations available to common stockholders (FFO) (2) | $ | 993.6 | $ | 937.7 |
FFO per share | $ | 1.06 | $ | 1.05 |
Normalized funds from operations available to common stockholders | ||||
(Normalized FFO) (2) | $ | 1,004.4 | $ | 937.9 |
Normalized FFO per share | $ | 1.07 | $ | 1.05 |
Adjusted funds from operations available to common stockholders | ||||
(AFFO) (2) | $ | 1,057.6 | $ | 949.7 |
AFFO per share | $ | 1.13 | $ | 1.06 |
(1) | The calculation to determine net income available to common stockholders includes provisions for impairment, 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 9 and 10 herein for reconciliations to the most directly comparable GAAP measure. |
Dividend Increases
In March 2026, we announced the 114th consecutive quarterly dividend increase, which is the 134th increase since our listing on the New York Stock Exchange ("NYSE") in 1994. The annualized dividend amount as of March 31, 2026 was $3.246 per share. The amount of monthly dividends paid per share increased 1.8% to $0.810 in the three months ended March 31, 2026, as compared to $0.796 during the three months ended March 31, 2025, representing 71.7% of our diluted AFFO per share of $1.13 during the three months ended March 31, 2026.
Real Estate Portfolio Update
As of March 31, 2026, we owned or held interests in 15,571 properties, which were leased to 1,786 clients doing business in 92 industries. Our diversified portfolio of commercial properties under long-term, net lease agreements is actively managed with a weighted average remaining lease term of approximately 8.7 years. Our portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of March 31, 2026, portfolio occupancy was 98.9% with 172 properties available for lease or sale, as compared to 98.9% as of December 31, 2025 and 98.5% as of March 31, 2025. Our property-level occupancy rates exclude properties with ancillary leases only, such as cell towers and billboards, and properties with possession pending, and include properties owned by unconsolidated joint ventures. Below is a summary of our portfolio activity for the period indicated below:
Changes in Occupancy
Three months ended March 31, 2026 | |
Properties available for lease as of December 31, 2025Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | 173 |
Lease expirations (1) Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | 320 |
Re-leases to same client                                                   | (220) |
Re-leases to new client                                                   | (23) |
Vacant dispositions | (78) |
Properties available for lease as of March 31, 2026Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â | 172 |
(1) | Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the period indicated above. |
During the three months ended March 31, 2026, the new Annualized Base Rent on re-leased units was $73.3 million, as compared to the previous annual rent of $70.9 million on the same units, representing a rent recapture rate of 103.4% on the re-leased units. Please see the Glossary for our definition of Annualized Base Rent.
Investment Summary
The following table summarizes our investments in the U.S. and Europe for the period indicated below (dollars in millions):
Three months ended March 31, 2026 | ||||||||
Investment | Pro-Rata | Weighted | Number of | |||||
 Acquisitions | ||||||||
U.S. wholly-owned | $Â Â Â Â Â Â Â Â Â Â Â Â Â 372.4 | $Â Â Â Â Â Â Â Â Â Â Â Â Â 372.4 | 10.0 | 83 | ||||
U.S. Core Plus Fund | 171.4 | 65.9 | 9.7 | 21 | ||||
Europe wholly-owned | 756.1 | 756.1 | 5.8 | 42 | ||||
Non-wholly owned(2) | 280.1 | 238.5 | 14.1 | 6 | ||||
Total real estate acquisitions(3) | $Â Â Â Â Â Â Â Â Â Â Â 1,580.0 | $Â Â Â Â Â Â Â Â Â Â Â 1,432.9 | 8.3 | 152 | ||||
Initial weighted average cash yield(4) | 6.7Â % | |||||||
Real estate properties under development | ||||||||
U.S. wholly-owned | $Â Â Â Â Â Â Â Â 30.3 | $Â Â Â Â Â Â Â Â 30.3 | 17.7 | 19 | ||||
Europe wholly-owned | 34.1 | 34.1 | 14.8 | 8 | ||||
Non-wholly owned(2) | 91.4 | 90.8 | 9.6 | 15 | ||||
Total real estate properties under | ||||||||
development(3) | $Â Â Â Â Â Â Â Â Â Â Â Â Â 155.8 | $Â Â Â Â Â Â Â Â Â Â Â Â Â 155.2 | 12.4 | 42 | ||||
Initial weighted average cash yield(4) | 7.4Â % | |||||||
Other investments(5) | ||||||||
U.S. wholly-owned | $             719.8 | $             719.8 | 3.6 | — | ||||
Europe wholly-owned | 251.7 | 251.7 | 3.8 | — | ||||
Other wholly-owned | 60.0 | 60.0 | 2.0 | — | ||||
Total other investments | $           1,031.5 | $           1,031.5 | 3.5 | — | ||||
Initial weighted average cash yield(4) | 7.8Â % | |||||||
Total investments | $Â Â Â Â Â Â Â Â Â Â Â 2,767.3 | $Â Â Â Â Â Â Â Â Â Â Â 2,619.6 | 6.5 | 194 | ||||
Initial weighted average cash yield(4) | 7.1Â % | |||||||
Supplementary Information: | ||||||||
Total U.S. and other volume | $Â Â Â Â Â Â Â Â Â Â Â 1,333.5 | |||||||
Initial weighted average cash yield(4) | 7.3Â % | |||||||
Total Europe volume | $Â Â Â Â Â Â Â Â Â Â Â 1,286.1 | |||||||
Initial weighted average cash yield(4) | 7.0Â % | |||||||
Investment Grade Clients(6) | 41Â % | |||||||
(1) | Reflects adjustments for our Pro-Rata Share based on our proportionate economic ownership of our joint ventures (which adds our economic ownership percentage of unconsolidated entities and deducts noncontrolling interests). Please see the Glossary for our definition of Pro-Rata Share for more information. |
(2) | Non-wholly owned represents U.S. and European investments not 100% owned by Realty Income, excluding the U.S. Core Plus Fund. |
(3) | For the three months ended March 31, 2026, our clients occupying the new properties are 63.9% retail, 33.6% industrial, and 2.5% other property types based on Cash Income. Please see the Glossary for our definition of Cash Income. |
(4) | Initial Weighted Average Cash Yield is a supplemental operating measure. Cash Income used in the calculation of Initial Weighted Average Cash Yield for investments for the three months ended March 31, 2026 includes $2.4 million received as settlement credits related to the reimbursement of free rent period. Please see the Glossary for our definitions of Initial Weighted Average Cash Yield and Cash Income. |
(5) | Represents various loans across the U.S. and Europe as well as construction loans in Mexico related to Realty Income's strategic partnership with GIC. |
(6) | Represents approximate percentage of annualized cash income generated by investments from Investment Grade Clients at the date of acquisition. Please see the Glossary for our definition of Investment Grade Clients. |
Same Store Rental Revenue
The following summarizes our same store rental revenue for 14,738 properties under lease for the three months ended March 31, 2026 and 2025 (dollars in millions):
Three months ended | |||||
2026 | 2025 | % Increase | |||
Same Store Rental Revenue         | $                      1,192.6 | $            1,182.6 | 0.8 % | ||
For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of March 31, 2026. Same Store Rental Revenue also includes our Pro-Rata Share of rental revenue from properties owned by unconsolidated joint ventures and amounts attributable to noncontrolling interests based on their respective ownership percentages. Please see the Glossary to see definitions of our Same Store Pool and Same Store Rental Revenue.
Property Dispositions The following summarizes our property dispositions (dollars in millions): | ||
Three months ended March 31, 2026 | ||
Properties sold | 97 | |
Net sales proceeds | $ | 188.0 |
Gain on sales of real estate | $ | 35.6 |
Liquidity and Capital Markets
Liquidity
As of March 31, 2026, we had $3.9 billion total available liquidity at our Pro-Rata Share(1), comprised of the components summarized below (dollars in millions):
Cash and cash equivalents (2) | $ | 388.4 |
Availability under credit facilities (3) | 2,714.0 | |
Unsettled At-the-Market ("ATM") forwards | 1,218.1 | |
Less: commercial paper borrowings | (414.9) | |
Total available liquidity at our Pro-Rata Share | $ | 3,905.6 |
(1) | Please see the Glossary for our definition of Pro-Rata Share for more information. |
(2) | Reflects adjustments for our share based on our proportionate economic ownership of our joint ventures. Calculated as cash and cash equivalents per the consolidated balance sheet of $373.5 million, plus our Pro-Rata Share of unconsolidated entities cash of $23.6 million, less adjustments allocable to noncontrolling interests of $8.7 million. |
(3) | Represents our availability under the Realty Income revolving credit facilities ("RI Revolving Credit Facilities") with a total capacity of $4.0 billion and our Pro-Rata Share of availability under the Fund Revolving Credit Facilities with a total capacity of $1.38 billion. |
Capital Raising
As of May 6, 2026, approximately 23.6 million shares of common stock subject to ATM forward sale agreements remain unsettled, of which 2.8 million shares were sold in April 2026, representing approximately $1.4 billion in expected net proceeds and a weighted average initial gross price of $60.33 per share. ATM net sale proceed amounts 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 April 2026, we issued $800.0 million of 4.750% senior unsecured notes due April 2033 (the "April 2033 Notes"). The public offering price for the April 2033 Notes was 98.261% of the principal amount for an effective yield to maturity of 5.047%. Interest is paid semi-annually. In connection with the issuance, we executed a $500 million U.S. Dollar-to-Euro 7-year cross currency swap, resulting in approximately €436 million of proceeds and an effective fixed-rate, Euro-denominated yield to maturity of approximately 4.07% and coupon rate of 3.81%. On a combined basis, the Notes and related swap resulted in an effective blended yield to maturity of approximately 4.44% and blended coupon rate of 4.16%.
In March 2026, we established our Managed Insurance and Retirement Annuity investment platform as a vehicle to pursue various co-investment opportunities with institutional investors. In connection with this initiative, on March 31, 2026, we closed a $1.0 billion strategic investment from Apollo in exchange for a 49% interest in a newly formed joint venture which owns an existing portfolio of 492 retail properties contributed by the Company.
In March 2026, we closed a $693.9 million unsecured term loan due January 2036 with an affiliate of The Goldman Sachs Group, Inc. at a 4.91% fixed rate and executed a cross-currency swap on $500 million of proceeds for approximately €431 million, achieving an effective blended borrowing rate of 4.34%.
On January 1, 2026, within our U.S. Core Plus Fund, we called $638.0 million of capital from third-party investors and redeemed $408.2 million of the Company's units, resulting in an indirect ownership of 38.5% in the Fund. On April 1, 2026, we called an additional $310.0 million of capital from third-party investors and redeemed $183.8 million of the Company's units, resulting in an indirect ownership of 26.8% in the Fund.
In January 2026, we issued $862.5 million principal amount of 3.500% convertible senior notes due January 2029 in a private offering, resulting in net proceeds of approximately $845.1 million. We used approximately $101.9 million of the net proceeds to repurchase approximately 1.8 million shares of our common stock concurrently with the pricing of the offering.
Guidance
Summarized below are approximate estimates of the key components of our 2026 earnings guidance (with 2026Â actual results for comparison):
Revised 2026 | Prior 2026Â | YTD Actuals at | |
Net income per share(2) | $1.60 - $1.63 | $1.65 - $1.69 | $0.33 |
Real estate depreciation per share | $2.65 | $2.68 | $0.67 |
Other adjustments per share(3) | $0.16 | $0.05 | $0.13 |
AFFO per share | $4.41 - $4.44 | $4.38 - $4.42 | $1.13 |
Same store rent growth | 1.0% - 1.3% | 1.0% - 1.3% | 0.8Â % |
Occupancy | Approx 98.5% | Approx 98.5% | 98.9Â % |
Cash G&A expenses (% of total gross asset value)(4)(5) | 20 - 23 bps | 20 - 23 bps | 6 bps |
Property expenses (non-reimbursable) (% of total revenue)(6) | Approx 1.5% | Approx 1.5% | 1.3Â % |
Income tax expenses                       | $100 - $110 million | $100 - $110 million | $26 million |
Investment volume (at 100%)                     | $9.5 billion | $8.0 billion | $2.8 billion |
Lease termination income              | $45 - $50 million | $30 - $40 million | $40 million |
(1) | As issued on February 24, 2026. |
(2) | Net income per share excludes future impairment and foreign currency or derivative gains or losses due to the inherent unpredictability of forecasting these items. |
(3) | Includes net adjustments for gains or losses on sales of properties, impairments, and merger, transaction, and other non-recurring costs. |
(4) | Cash G&A represents 'General and administrative' expenses as presented in our consolidated statements of income, less share-based compensation costs. |
(5) | Please see the Glossary for our definition of Gross Asset Value. |
(6) | Total revenue excludes client reimbursements. |
Conference Call Information
In conjunction with the release of our operating results, we will host a conference call on May 6, 2026 at 2:00 p.m. PDT to discuss the operating results. To access the conference call, dial (833) 816-1264 (United States) or (412) 317-5632 (International). When prompted, please ask for the Realty Income conference call.
A telephone replay of the conference call can also be accessed by calling (855) 669-9658 (United States) or (412) 317-0088 (International) and entering the conference ID 5227110. The telephone replay will be available through May 13, 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 months ended March 31, 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 March 31, 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 670 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index for having increased our dividend for over 31 consecutive years. Additional information about the company can be found at www.realtyincome.com. Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (www.realtyincome.com/investors), press releases, SEC filings and public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimate," "anticipate," "assume," "expect," "believe," "intend," "continue," "should," "may," "likely," "plan," "seek," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business, strategy, plans, and the intentions of management; joint ventures, partnerships, and portfolio including management thereof; our platform; growth and capital strategies including our private capital business, investment pipeline and intentions to acquire or dispose of properties (including geographies, timing, partners, clients and terms); re-leases, re-development and speculative development of properties and expenditures related thereto; operations and results; guidance; our share repurchase program; settlement of shares of common stock sold pursuant to forward sale confirmations under our ATM program; dividends, including the amount, timing and payments of dividends; and macroeconomic and other business trends, including interest rates and trends in the market for long-term leases of freestanding, single-client properties. Forward-looking statements are subject to risks, uncertainties, and assumptions about us which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures, including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships
