Realty Income raises 2026 AFFO forecast, Q3 revenue tops estimates

Realty Income (O) said on Nov. 2 that it raised its 2026 AFFO per share forecast, and its third-quarter revenue topped the $1.55 billion revenue estimate compiled by Finnhub.

The company, which owned or held interests in 15,536 properties at Sept. 30, 2026, leases commercial real estate under long-term, net lease agreements. Its company's press release covered the three and nine months ended Sept. 30.

Here's how the company did:

• Revenue: $1.62 billion vs. $1.47 billion a year earlier, and $1.55 billion expected, according to Finnhub
• AFFO per share: $1.12 vs. $1.08 a year earlier
• Net income per share: $0.43 vs. $0.35 a year earlier
• Net income available to common stockholders: $403.9 million vs. $315.8 million a year earlier

AFFO per share increased 3.7% from a year earlier. Portfolio occupancy was 98.8% at Sept. 30.

2026 guidance

Realty Income raised its 2026 AFFO per share forecast to $4.45 to $4.46, from the $4.44 to $4.45 range it gave on Aug. 5. It lowered its net income per share forecast to $1.55 to $1.56, from $1.59 to $1.60, and reaffirmed its $10.0 billion investment volume target.

Sumit Roy, President and Chief Executive Officer, said: "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." He added that the company is raising its 2026 AFFO per share guidance.

Investments and capital

The company invested $2.6 billion in the quarter, with a pro-rata share of $2.2 billion at an initial weighted average cash yield of 6.8%. In September, it expanded its private capital platform into Europe through a joint venture with KKR, in which KKR invested ""€528.0 million"" for a 49% equity interest in 54 stabilized net lease properties across four European countries.

Net debt to annualized pro forma adjusted EBITDAre was 5.4 times. In August, the company issued $1.0 billion of 3.750% convertible senior notes due August 2031, with net proceeds of $983.2 million. It used about $188.7 million of those proceeds to repurchase about 3.0 million shares of its common stock.

Dividend

In September, the company announced its 116th consecutive quarterly dividend increase. The annualized dividend was $3.258 per share as of Sept. 30. Monthly dividends paid per share rose 0.7% to $0.813 in the quarter, from $0.807 a year earlier.