Realty Income Corp
Q2 2026 Earnings
Includes $54.2 million provisions for impairment of real estate, $7.3 million provisions for credit losses on loans and financing receivables, $38.3 million gain on sales of real estate, $8.8 million foreign currency and derivative loss, and $0.3 million executive severance charge. AFFO per share (the street-comparable non-GAAP metric for REITs) was $1.09.
Market Reaction
Did O Beat Earnings? Q2 2026 Results
Realty Income posted a mixed second quarter for 2026, with GAAP earnings per share of $0.37 missing the $0.42 consensus estimate by 12.47%, even as revenue of $1.55 billion beat expectations by 7.33% and grew 9.7% year over year. The GAAP figure reflects several one-time items, including $54.19 million in real estate impairment provisions, a $38.30 million gain on property sales, $7.30 million in credit loss provisions, an $8.80 million foreign currency and derivative loss, and a $255,000 executive severance charge. On the metric analysts watch most closely for REITs, AFFO per share came in at $1.09, up 3.8% from a year ago, supported by a sharp rise in interest and dividend income from the company's expanding credit platform to $88.52 million from $39.48 million. Investment volume for the quarter reached roughly $2.60 billion at a 7.3% initial cash yield, with industrial properties comprising 65% of new cash income, and management raised full-year investment guidance to $10.00 billion while lifting AFFO per share guidance to $4.44-$4.45.
- AFFO per share increased 3.8% year-over-year to $1.09
- Same store rental revenue growth of 1.2% for Q2 2026
- Invested approximately $2.6 billion ($2.1 billion at pro-rata share) at 7.3% initial weighted average cash yield
- Rent recapture rate of 102.7% on re-leased properties
- Interest and dividend income on loans and preferred equity investments more than doubled to $88.5 million from $39.5 million year-over-year
- Real estate impairment provisions declined significantly to $54.2 million from $142.3 million year-over-year
- Cash basis bad debt reserves improved to $4.6 million from $10.9 million year-over-year
“Our results reflect the strength of Realty Income's diversified platform and our disciplined approach to capital allocation. As demonstrated by our recently announced $6 billion hyperscale data center joint venture and the continued expansion of our Realty Income Investment Management platform, we are leveraging our scale, relationships, and track record to access new sources of growth while maintaining the same disciplined underwriting standards that have defined Realty Income for decades.”
Realty Income CEO, on the earnings call
Forward Guidance & Outlook
Realty Income raised its 2026 AFFO per share guidance to $4.44-$4.45 (from prior $4.41-$4.44), reflecting approximately 4% growth at the midpoint. Full-year 2026 net income per share guidance was revised to $1.59-$1.60 (from $1.60-$1.63). Investment volume guidance was raised to $10.0 billion at 100% (from $9.5 billion). Same store rent growth guidance was tightened to 1.1%-1.3% (from 1.0%-1.3%). Occupancy is expected at approximately 98.5%. Income tax expenses are expected at $100-$110 million. Lease termination income is expected at $45-$50 million.
O YoY Financials
O Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.