Realty Income (O) Q1 2026 earnings summary

Executive summary

• AFFO per share rose 6.6% year-over-year to $1.13, with net income up 24.8% to $311.8 million and total revenue increasing 12.2% to $1.55 billion.

• Portfolio expanded to 15,571 properties across the U.S., U.K., and Europe, maintaining 98.9% occupancy and a weighted average lease term of 8.7 years.

• Major capital initiatives included $2.8 billion invested at a 7.1% initial cash yield, a $1.7 billion U.S. Core Plus Fund raise, and strategic partnerships with Apollo ($1 billion) and GIC ($1.5 billion).

• 94% of Q1 investments were relationship-driven, with 41% of new investments made with investment grade clients.

• Declared 670 consecutive monthly dividends, with annualized dividends at $3.246 per share and a 4.2% CAGR.

Financial highlights

• Adjusted EBITDAre for Q1 was $1.39 billion, with annualized pro forma at $5.70 billion.

• Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.2x at quarter-end.

• Total capitalization reached $87.8 billion, with $57.2 billion in equity and $30.5 billion in debt.

• Dividend payout ratio was 71.7% of diluted AFFO per share.

• Cash G&A expenses at 6 bps of gross asset value, reflecting market-leading efficiency.

Outlook and guidance

• Raised full-year investment volume guidance to $9.5 billion at 100% ownership.

• Increased AFFO per share guidance to $4.41–$4.44, projecting 3.0%–3.7% annual growth.

• Portfolio occupancy guidance remains at approximately 98.5%.

• Lowered credit loss outlook to 40 basis points of rental revenue.

• Same store rent growth expected at 1.0%–1.3% for 2026.