Companies /Real Estate

Realty Income Corp

NYSE: O Reit - Retail
$62.27
▼ $0.57 (−0.90%) today
Markets closed · 4:21pm ET

Q1 2026 Earnings

Reported May 6, 2026, 4:08pm ET · SEC source
$1.13
Beat +170.85%
EPS · est. $0.42
$1.5B
Beat +11.14%
Revenue · est. $1.4B
−1.6%
Trailing market
O vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−2%0May 6May 7report 4:08pm ETearnings−0.5%−3.4%
−2%0May 6May 7earnings−0.5%−3.4%
O −3.4%S&P 500 −0.5%
−2%0May 6May 7report 4:08pm ETearnings−0.5%−3.4%
−2%0May 6May 7earnings−0.5%−3.4%
O −3.4%NASDAQ −0.5%
−4%−2%0+2%May 5May 14report 4:08pm ETearnings+1.9%−3.1%
−4%−2%0+2%May 5May 14earnings+1.9%−3.1%
O −3.1%S&P 500 +1.9%
−3%0+3%May 5May 14report 4:08pm ETearnings+3.5%−3.1%
−3%0+3%May 5May 14earnings+3.5%−3.1%
O −3.1%NASDAQ +3.5%
−3.47%
Day of report
+0.21%
Next session
+0.28%
One week
−0.87%
30 days

S&P 500 over the same 30 days: +0.75%.

Did O Beat Earnings? Q1 2026 Results

Realty Income delivered a robust first quarter of 2026, with adjusted funds from operations of $1.13 per share growing 6.6% year over year and revenue reaching $1.55 billion, as an aggressive acceleration in investment activity underscored the company's expanding scale. The single most consequential driver of the quarter was a surge in deployment, with Realty Income investing $2.80 billion at an initial weighted average cash yield of 7.1%, prompting management to raise its full-year investment volume target to $9.50 billion from $8.00 billion. Strategic momentum also built around the company's private capital ambitions, as the formation of a joint venture with Apollo and the $1.70 billion U.S. Core Plus Fund raise lifted third-party private capital AUM to $3.10 billion. Portfolio occupancy remained firm at 98.9%, with lease recapture rates of 103.4% signaling healthy tenant demand. Looking ahead, management lifted its full-year AFFO per share guidance to $4.41–$4.44, implying annual per share growth of 3.0% to 3.7%, while Truist Financial's recent stake increase reflects continued institutional confidence in the name.

Key Takeaways
  • AFFO per share increased 6.6% year over year to $1.13
  • Invested $2.8 billion at 7.1% initial weighted average cash yield
  • Same store rental revenue growth of 0.8% on a constant currency basis
  • Rent recapture rate of 103.4% on re-leased properties
  • Portfolio occupancy maintained at 98.9%
  • Lease termination income of $40.2 million vs $0.9 million year ago
  • Net Debt to Annualized Pro Forma Adjusted EBITDAre improved to 5.2x from 5.4x

“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.”

Realty Income CEO, on the earnings call

Forward Guidance & Outlook

Realty Income raised its 2026 AFFO per share guidance to $4.41–$4.44 (from $4.38–$4.42), reflecting projected annual per share growth of 3.0% to 3.7%. Full-year investment volume guidance was increased to $9.5 billion from $8.0 billion. Net income per share guidance was revised to $1.60–$1.63. Same store rent growth is expected at 1.0%–1.3%. Occupancy is projected at approximately 98.5%. Income tax expenses are estimated at $100–$110 million. Lease termination income guidance was raised to $45–$50 million from $30–$40 million.

O YoY Financials

Revenue$1.5B
Net Income$311.8M
Operating Income$310.7M

O Revenue by Segment

Retail Properties$4.1B+2.2%
Industrial Properties$808.3M+10.8%
Gaming Properties$165.6M+1.8%
Other Properties$125.7M+1.2%

Figures from SEC filings and company reports. Not investment advice.