Key Highlights

  • O reported third-quarter 2026 AFFO of $1.12 per share, up 3.7% from the prior-year quarter.
  • Total Revenue reached $1,621.6 million, compared with $1,470.6 million a year earlier.
  • Net income available to common stockholders was $403.9 million, or $0.43 per share, versus $315.8 million, or $0.35, in the third quarter of 2025.
  • The company invested $2.6 billion in the quarter, with its pro-rata share of $2.2 billion at a 6.8% initial weighted average cash yield.
  • Full-year 2026 AFFO per share guidance rose to $4.45 to $4.46 from $4.44 to $4.45.

AFFO Growth and Higher Guidance Anchor the Third-Quarter Report

Realty Income (NYSE:O) reported results for the three months ended Sep 30, 2026 on Nov 2, 2026. Adjusted funds from operations (AFFO) rose to $1.12 per share from $1.08 a year earlier, an increase of 3.7%. Total AFFO was $1,061.1 million, compared with $992.0 million.

Revenue grew to $1,621.6 million from $1,470.6 million, a rise of about 10.3% (calculated). Funds From Operations (FFO) were $1.10 per share against $1.07, and normalized FFO was $1.10 per share against $1.09.

Net income available to common stockholders climbed to $403.9 million from $315.8 million, though the company noted that impairments, Credit loss provisions and sale gains can swing that figure.

$2.6 Billion of Investments Span Europe, Credit and Industrial Assets

The company invested $2.6 billion in the quarter, of which $2.2 billion was its pro-rata share, at an initial weighted average cash Yield of 6.8%. Real estate acquisitions totaled $2.16 billion at a 6.6% yield, with Europe wholly-owned deals accounting for $721.0 million and U.S. wholly-owned deals for $780.1 million. Credit investments added $261.5 million at a 7.9% yield.

Management said funding costs averaged about 5% in the first year, leaving a leverage-neutral spread of roughly 170 basis points. By cash income, new properties were 57.3% industrial, 31.0% retail and 11.7% data center.

The company sold 182 properties for net proceeds of $526.6 million, recording a gain of $113.9 million. Occupancy held at 98.8%, rent recapture was 103.5%, and same store rental revenue rose 1.1%.

Convertible Notes, Euro Debt and a European Joint Venture Broaden Funding

Realty Income is a net Lease real estate Investment trust founded in 1969 that owns 15,536 properties leased to 1,842 clients across 96 industries. In September 2026 it announced its 116th consecutive quarterly Dividend increase, putting the annualized dividend at $3.258 per share.

In August 2026 the company issued $1.0 billion of 3.750% convertible senior notes due August 2031, with net proceeds of $983.2 million, and used $188.7 million to repurchase about 3.0 million shares. In July it sold EUR 600.0 million of 3.625% notes due 2032 and enlarged its revolving credit facilities to $5.5 billion from $4.0 billion.

A global investment firm put EUR 528.0 million into a euro-denominated joint venture for a 49% stake in 54 stabilized net lease properties across four European countries. Net debt to annualized pro forma adjusted EBITDAre was 5.4x, and available Liquidity was $5.4 billion.

Prefunded Fourth-Quarter Pipeline and Raised Occupancy Outlook Frame the Year-End

The company lifted its 2026 outlook for AFFO per share and occupancy, now above 98.5%, and lowered expected non-reimbursable property expenses to 1.3% to 1.5% of revenue. Management said it expects credit losses of about 30 basis points, down from 40, and that Equity needs for the rest of the year are fully prefunded. The $10.0 billion investment Volume target is unchanged, with $7.9 billion completed through Sep 30, 2026; investors can look to the fourth-quarter report for the full-year outcome.