three and six months ended June 30, 2026
Filed Aug 5, 2026Realty Income reported $1,547.7 million of second-quarter total revenue, $1.09 of AFFO per share, and raised 2026 AFFO per share guidance to $4.44 - $4.45.
AFFO per share increased 3.8% to $1.09, total revenue was $1,547.7 million versus $1,410.4 million, occupancy remained 98.8%, and the company raised 2026 AFFO per share guidance. Net income available to common stockholders also increased to $344.0 million from $196.9 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended June 30, 2026GAAP | $1,547.7 million | – | – |
| Net income available to common stockholders, three months ended June 30, 2026GAAP | $344.0 million | – | – |
| Net income per share, three months ended June 30, 2026GAAP | $0.37 | – | – |
| Funds from operations available to common stockholders (FFO), three months ended June 30, 2026non-GAAP | $996.6 million | – | – |
| FFO per share, three months ended June 30, 2026non-GAAP | $1.07 | – | – |
| Normalized funds from operations available to common stockholders (Normalized FFO), three months ended June 30, 2026non-GAAP | $998.7 million | – | – |
| Normalized FFO per share, three months ended June 30, 2026non-GAAP | $1.07 | – | – |
| Adjusted funds from operations available to common stockholders (AFFO), three months ended June 30, 2026non-GAAP | $1,022.1 million | – | – |
| AFFO per share, three months ended June 30, 2026non-GAAP | $1.09 | – | 3.8% |
| Total revenue, six months ended June 30, 2026GAAP | $3,096.4 million | – | – |
| Net income available to common stockholders, six months ended June 30, 2026GAAP | $655.7 million | – | – |
| Net income per share, six months ended June 30, 2026GAAP | $0.70 | – | – |
| Funds from operations available to common stockholders (FFO), six months ended June 30, 2026non-GAAP | $1,990.2 million | – | – |
| FFO per share, six months ended June 30, 2026non-GAAP | $2.13 | – | – |
| Normalized funds from operations available to common stockholders (Normalized FFO), six months ended June 30, 2026non-GAAP | $2,003.0 million | – | – |
| Normalized FFO per share, six months ended June 30, 2026non-GAAP | $2.14 | – | – |
| Adjusted funds from operations available to common stockholders (AFFO), six months ended June 30, 2026non-GAAP | $2,079.7 million | – | – |
| AFFO per share, six months ended June 30, 2026non-GAAP | $2.22 | – | – |
| Same Store Rental Revenue, three months ended June 30, 2026other | $1,169.2 million | – | 1.2 % |
| Same Store Rental Revenue, six months ended June 30, 2026other | $2,335.2 million | – | 1.0 % |
2026 outlook
- NoteAFFO per share: $4.44 - $4.45
- Noteapproximately 4% growth rate at the midpoint
Capital returns
- In June 2026, Realty Income announced the 115th consecutive quarterly dividend increase, which is the 135th increase since its listing on the NYSE in 1994.
- The annualized dividend amount as of June 30, 2026 was $3.252 per share.
- Monthly dividends paid per share increased 0.7% to $0.812 in the three months ended June 30, 2026, as compared to $0.806 during the three months ended June 30, 2025.
- Monthly dividends paid represented 74.5% of diluted AFFO per share of $1.09 during the three months ended June 30, 2026.
What drove it
- Total investments were $2,567.8 million, with a Pro-Rata Share of $2,074.7 million, during the three months ended June 30, 2026. Initial Weighted Average Cash Yield was 7.3%.
- Total real estate acquisitions were $1,803.7 million, with a Pro-Rata Share of $1,311.3 million, during the three months ended June 30, 2026. Initial Weighted Average Cash Yield was 6.4%.
- Total other investments were $628.7 million during the three months ended June 30, 2026, with an Initial Weighted Average Cash Yield of 9.2%.
- Portfolio occupancy was 98.8% as of June 30, 2026, compared with 98.9% as of March 31, 2026 and 98.6% as of June 30, 2025.
- The new Annualized Base Rent on units re-leased during the three months ended June 30, 2026 was $110.3 million, compared with previous annual rent of $107.4 million, for a rent recapture rate of 102.7%.
- The portfolio comprised 15,588 properties leased to 1,798 clients doing business in 92 industries as of June 30, 2026. The weighted average remaining lease term was approximately 8.6 years.
- Clients occupying new properties during the three months ended June 30, 2026 were 34.0% retail, 65.0% industrial, and 1.0% other property types based on Cash Income.
Concerns
- Portfolio occupancy declined to 98.8% as of June 30, 2026 from 98.9% as of March 31, 2026.
- Properties available for lease increased to 188 as of June 30, 2026 from 172 as of March 31, 2026.
- Same Store Rental Revenue increased 1.2 % in the three months ended June 30, 2026.
- Net income available to common stockholders can be significantly affected by provisions for impairment of real estate, provisions for credit losses on loans and financing receivables, gain on sales of real estate, and foreign currency gain and loss.
What to watch
- Execution of the recently announced $6 billion hyperscale data center joint venture.
- Investment deployment and Initial Weighted Average Cash Yield following $2,567.8 million of total investments during the three months ended June 30, 2026.
- Occupancy, properties available for lease or sale, and rent recapture rates.
- Progress toward 2026 AFFO per share guidance of $4.44 - $4.45.
- Use of amended credit facilities, commercial paper programs, ATM forwards, and the €600.0 million senior unsecured notes issuance.
Balance sheet and cash flow
- Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4x.
- As of June 30, 2026, total available liquidity at the Pro-Rata Share was $3.5 billion.
- Cash and cash equivalents were $534.6 million as of June 30, 2026.
- Availability under credit facilities was $3,152.7 million as of June 30, 2026.
- Unsettled At-the-Market (ATM) forwards were $1,228 million as of June 30, 2026.
- In July 2026, Realty Income issued €600.0 million of 3.625% senior unsecured notes due July 2032.
- In July 2026, Realty Income amended and restated its unsecured revolving credit facility to $5.5 billion and commercial paper programs to $5.5 billion.
Analysis
Realty Income delivered higher second-quarter revenue and earnings. Total revenue was $1,547.7 million, compared with $1,410.4 million in the prior-year quarter. Net income available to common stockholders was $344.0 million, or $0.37 per share, compared with $196.9 million, or $0.22 per share. The company notes that impairment provisions, credit-loss provisions, real-estate sales gains, and foreign-currency gains and losses can significantly affect net-income comparisons.
Recurring cash-flow measures increased more moderately. AFFO was $1,022.1 million and AFFO per share was $1.09, compared with $947.5 million and $1.05, respectively, in the prior-year quarter. The stated 3.8% increase in AFFO per share supported an increase in 2026 AFFO per share guidance to $4.44 - $4.45. FFO per share and Normalized FFO per share were each $1.07, compared with $1.06 in the prior-year quarter.
Portfolio fundamentals remained resilient, though availability increased during the quarter. Occupancy was 98.8% as of June 30, 2026, compared with 98.9% at March 31, 2026, while properties available for lease or sale rose to 188 from 172. Same Store Rental Revenue was $1,169.2 million, a stated increase of 1.2 %. Re-leasing economics were positive, with a 102.7% rent recapture rate based on $110.3 million of new Annualized Base Rent versus $107.4 million of previous annual rent.
Investment activity was substantial, totaling $2,567.8 million during the quarter and $2,074.7 million at the company's Pro-Rata Share, at an Initial Weighted Average Cash Yield of 7.3%. Acquisitions totaled $1,803.7 million, while other investments totaled $628.7 million. New-property client mix was weighted toward industrial at 65.0%, with retail at 34.0%. Management also cited the recently announced $6 billion hyperscale data center joint venture and expansion of the Realty Income Investment Management platform as complementary growth channels.
Capital allocation continued to include dividend growth and liquidity actions. The annualized dividend amount was $3.252 per share as of June 30, 2026, and monthly dividends paid of $0.812 represented 74.5% of diluted AFFO per share of $1.09. Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4x, while total available liquidity at the Pro-Rata Share was $3.5 billion. Subsequent to quarter-end, the company issued €600.0 million of 3.625% senior unsecured notes due July 2032 and amended and restated its unsecured revolving credit facility and commercial paper programs to $5.5 billion each.
Management, verbatim
Our results reflect the strength of Realty Income's diversified platform and our disciplined approach to capital allocation.
Sumit Roy, Chief Executive Officer
Supported by the resilience of our core portfolio and contributions from these complementary growth channels, we delivered another quarter of solid AFFO per share growth and invested approximately $2.6 billion, or $2.1 billion at our share, during the quarter. As a result, we are pleased to raise our 2026 AFFO per share guidance to $4.44 - $4.45, reflecting approximately 4% growth rate at the midpoint.
Sumit Roy, Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross margin
- GAAP operating income
- GAAP operating margin
- Non-GAAP operating income
- Operating cash flow
- Free cash flow
- Total debt amount
- Net debt amount
- Share repurchases
- Revenue guidance
- Gross margin guidance
- Operating expenses guidance
- Tax-rate guidance
- Prior guidance figures and comparison, because no previous outlook was provided
- Formal reportable segment revenue
- Prior-quarter comparisons for reported financial metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.