Realty Income Q2 2026: AFFO rises 3.8% despite GAAP miss
As seen on the 24/7 Wall St. homepage on August 5, 2026.
The GAAP miss carries $54.2 million of impairments, but AFFO per share rose 3.8% to $1.09 and management lifted full-year AFFO guidance to a range of $4.44 to $4.45. Investment volume plans rise to $10 billion for this monthly dividend payer, with a $6 billion hyperscale data center joint venture now the growth story.
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Realty Income reported Q2 2026 GAAP earnings per share of $0.37, falling about 12% short of the $0.4227 consensus estimate. The headline miss is largely explained by $54.2 million in impairment charges that weighed on the GAAP figure. On the revenue side, the company posted $1.55 billion, beating estimates of roughly $1.44 billion by more than 7%.
The more closely watched operating metric for REITs tells a healthier story. Adjusted funds from operations — AFFO — rose 3.8% to $1.09 per share, and management followed that up by lifting full-year AFFO guidance to a range of $4.44 to $4.45. Investment volume plans were also raised, now targeting $10 billion for the year.
The headline growth story is a $6 billion hyperscale data center joint venture, which gives this monthly dividend payer a significant new avenue for capital deployment. Looking back over the past eight quarters, Realty Income has now missed the GAAP EPS consensus in every period reported — a pattern that underscores why investors tend to focus on AFFO rather than net income when evaluating the stock.
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