Realty Income (O) BofA Securities 2025 Global Real Estate Conference summary

Strategic platform and operational performance

• Maintains a diversified net lease platform with consistent positive returns since 1994, supported by operational expertise and a strong balance sheet.

• Achieved a 13.5% compound annual total return and 4.2% annual dividend growth rate.

• Focuses on disciplined growth, leveraging scale, predictive analytics, and conservative financial management.

• Funding growth through free cash flow, dispositions, and equity, supported by low leverage and strong credit ratings.

• Aims to deliver dependable, growing monthly dividends and long-term value.

Acquisition pipeline and geographic focus

• Sourced over $60 billion in deals in the first half of 2025, matching the prior year's total.

• 76% of second-quarter activity was in Europe, driven by better risk-adjusted returns and less competition.

• European cap rates averaged 7.3% with 3.9% borrowing costs, compared to 7% cap rates and 5.1% borrowing costs in the U.S.

• Expects European momentum to continue in the near term.

• Raised acquisition guidance for 2025 by 20–25% due to a robust pipeline and improved cost of capital outlook.

Capital strategy and private fund initiatives

• Passed on $3.6 billion in deals that met underwriting but not year-one spread requirements; these may be pursued via private capital.

• Developing an open-ended, perpetual U.S.-centric private fund, with first closing expected by year-end and details to be shared in 2026 guidance.

• Private fund will follow similar diversification and risk limits as the public platform.

• Targeting state pension funds and insurance capital, which cannot invest in public securities.