Three and nine months ended September 30, 2026
Filed Nov 2, 2026Realty Income reported third-quarter AFFO per share of $1.12, raised 2026 AFFO per share guidance to $4.45 - $4.46, and reaffirmed its $10.0 billion investment volume target.
Third-quarter AFFO per share increased 3.7% to $1.12, occupancy was 98.8%, rent recapture was 103.5%, and the company raised AFFO per share guidance. Net income per share guidance declined to $1.55 - $1.56 from $1.59 - $1.60, while nine-month provisions for credit losses increased to $60.6 million from $31.9 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $1.62B | – | – |
| Rental revenue including reimbursements, three months ended September 30GAAP | $1.48B | – | – |
| Interest income on financing receivables, three months ended September 30GAAP | $32.25M | – | – |
| Interest and dividend income on loans and preferred equity investments, three months ended September 30GAAP | $105.0M | – | – |
| Total expenses, three months ended September 30GAAP | $1.29B | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $647.6M | – | – |
| Interest expense, three months ended September 30GAAP | $333.6M | – | – |
| Property expenses including reimbursements, three months ended September 30GAAP | $122.4M | – | – |
| General and administrative expenses, three months ended September 30GAAP | $54.31M | – | – |
| Provisions for impairment of real estate, three months ended September 30GAAP | $111.6M | – | – |
| Provisions for credit losses on loans and financing receivables, three months ended September 30GAAP | $14.21M | – | – |
| Gain on sales of real estate, three months ended September 30GAAP | $113.9M | – | – |
| Net income available to common stockholders, three months ended September 30GAAP | $403.9M | – | – |
| Net income per share, three months ended September 30GAAP | $0.43 | – | – |
| FFO available to common stockholders, three months ended September 30non-GAAP | $1.04B | – | – |
| FFO per diluted share, three months ended September 30non-GAAP | $1.10 | – | – |
| Normalized FFO available to common stockholders, three months ended September 30non-GAAP | $1.04B | – | – |
| Normalized FFO per diluted share, three months ended September 30non-GAAP | $1.10 | – | – |
| AFFO available to common stockholders, three months ended September 30non-GAAP | $1.06B | – | – |
| AFFO per diluted share, three months ended September 30non-GAAP | $1.12 | – | 3.7% |
| Total revenue, nine months ended September 30GAAP | $4.72B | – | – |
| Rental revenue including reimbursements, nine months ended September 30GAAP | $4.35B | – | – |
| Interest income on financing receivables, nine months ended September 30GAAP | $96.40M | – | – |
| Interest and dividend income on loans and preferred equity investments, nine months ended September 30GAAP | $263.6M | – | – |
| Total expenses, nine months ended September 30GAAP | $3.71B | – | – |
| Net income available to common stockholders, nine months ended September 30GAAP | $1.06B | – | – |
| Net income per share, nine months ended September 30GAAP | $1.13 | – | – |
| FFO available to common stockholders, nine months ended September 30non-GAAP | $3.03B | – | – |
| FFO per diluted share, nine months ended September 30non-GAAP | $3.23 | – | – |
| Normalized FFO available to common stockholders, nine months ended September 30non-GAAP | $3.05B | – | – |
| Normalized FFO per diluted share, nine months ended September 30non-GAAP | $3.25 | – | – |
| AFFO available to common stockholders, nine months ended September 30non-GAAP | $3.14B | – | – |
| AFFO per diluted share, nine months ended September 30non-GAAP | $3.35 | – | – |
| Same Store Rental Revenue, three months ended September 30non-GAAP | $1.16B | – | 1.1 % |
| Same Store Rental Revenue, nine months ended September 30non-GAAP | $3.48B | – | 1.1 % |
| Portfolio occupancy as of September 30, 2026other | 98.8% | – | – |
| Rent Recapture Rate, three months ended September 30other | 103.5% | – | – |
| Rent Recapture Rate, nine months ended September 30other | 103.1% | – | – |
| Total investments, three months ended September 30other | $2.57B | – | – |
| Total investments Pro-Rata Share, three months ended September 30other | $2.23B | – | – |
| Initial Weighted Average Cash Yield on total investments, three months ended September 30other | 6.8 % | – | – |
| Total investments, nine months ended September 30other | $7.90B | – | – |
| Total investments Pro-Rata Share, nine months ended September 30other | $6.92B | – | – |
| Initial Weighted Average Cash Yield on total investments, nine months ended September 30other | 7.1 % | – | – |
| Net Debt/Annualized Pro Forma Adjusted EBITDA re as of September 30, 2026non-GAAP | 5.4 x | – | – |
| Net Debt/Annualized Pro Forma Adjusted EBITDA re inclusive of unsettled ATM forward equity as of September 30, 2026non-GAAP | 5.2 x | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $2.95B | – | – |
| Adjusted Free Cash Flow, nine months ended September 30non-GAAP | $708.8M | – | – |
| Annualized Adjusted Free Cash Flow, nine months ended September 30non-GAAP | $945.1M | – | – |
Revised 2026 Guidance outlook
- NoteNet income per share: $1.55 - $1.56
- NoteAFFO per share: $4.45 - $4.46
- NoteSame store rent growth: 1.1% - 1.3%
- NoteOccupancy: Above 98.5%
- NoteCash G&A expenses (% of total Gross Asset Value): 21 - 22 bps
- NoteProperty expenses (non-reimbursable) (% of total revenue): 1.3% - 1.5%
- NoteIncome tax expenses: $100 - $110 million
- NoteInvestment volume (at 100%): $10.0 billion
- NoteLease termination income: $45 - $50 million
Capital returns
- The annualized dividend amount as of September 30, 2026 was $3.258 per share.
- Cash dividends paid per common share were $0.8130 for the three months ended September 30, 2026, compared to $0.8070 for the three months ended September 30, 2025.
- Cash dividends paid per common share were $2.4345 for the nine months ended September 30, 2026, compared to $2.4085 for the nine months ended September 30, 2025.
- In August 2026, the company used approximately $188.7 million of convertible-note net proceeds to repurchase approximately 3.0 million shares of common stock.
What drove it
- The company invested $2.6 billion during the three months ended September 30, 2026, with a Pro-Rata Share of $2.2 billion and an Initial Weighted Average Cash Yield of 6.8%.
- Total investment volume was $7.9 billion during the nine months ended September 30, 2026.
- New Annualized Base Rent on third-quarter re-leased units was $67.6 million, compared with previous annual rent of $65.3 million on the same units.
- Same Store Rental Revenue increased 1.1% for both the three and nine months ended September 30, 2026.
- The company expanded its private capital platform into Europe through a strategic partnership with KKR, which invested €528.0 million for a 49% equity interest in a newly formed euro-denominated joint venture.
- The third-quarter new-property mix was 31.0% retail, 57.3% industrial, and 11.7% data center property types based on Cash Income.
Concerns
- Provisions for impairment of real estate were $111,645 thousand in the three months ended September 30, 2026, compared to $75,391 thousand in the prior-year period.
- Provisions for credit losses on loans and financing receivables were $60,573 thousand in the nine months ended September 30, 2026, compared to $31,861 thousand in the prior-year period.
- Interest expense was $333,564 thousand in the three months ended September 30, 2026, compared to $294,482 thousand in the prior-year period.
- Revised 2026 net income per share guidance of $1.55 - $1.56 was below prior 2026 guidance of $1.59 - $1.60.
- The company reported Net Debt/Annualized Pro Forma Adjusted EBITDA re of 5.4 x as of September 30, 2026.
What to watch
- Execution toward the reaffirmed $10.0 billion 2026 investment volume target after $7.9 billion of year-to-date investment volume.
- Achievement of revised 2026 AFFO per share guidance of $4.45 - $4.46 following $3.35 of year-to-date AFFO per share.
- Portfolio occupancy relative to guidance of Above 98.5% after reported occupancy of 98.8% as of September 30, 2026.
- Same-store rent growth relative to 2026 guidance of 1.1% - 1.3% after 1.1% year-to-date actual growth.
- Settlement of approximately 18.5 million shares subject to ATM forward sale agreements, representing approximately $1.1 billion in expected net proceeds as of November 2, 2026.
- The trajectory of impairment provisions, credit-loss provisions, interest expense, and foreign currency and derivative results.
Balance sheet and cash flow
- Cash and cash equivalents were $368.5 million as of September 30, 2026.
- Total available liquidity at Pro-Rata Share was $5,390.3 million as of September 30, 2026, including $5,485.1 million of availability under credit facilities and $1,090.1 million of unsettled ATM forwards, less $1,540.7 million of commercial paper borrowings.
- Total debt per the consolidated balance sheet, excluding deferred financing costs and net discounts, was $31,738,055 thousand as of September 30, 2026.
- Net Debt was $31,369,521 thousand as of September 30, 2026.
- Net Debt inclusive of unsettled ATM forward equity was $30,279,441 thousand as of September 30, 2026.
- Total assets were $77,950,414 thousand as of September 30, 2026, compared to $72,795,612 thousand as of December 31, 2025.
- Total liabilities were $35,276,018 thousand as of September 30, 2026, compared to $32,671,644 thousand as of December 31, 2025.
- Total equity was $42,602,651 thousand as of September 30, 2026, compared to $40,123,968 thousand as of December 31, 2025.
- During the three months ended September 30, 2026, the company raised $472.5 million of proceeds from the sale of common stock at a weighted average price of $60.49 per share.
- In August 2026, the company issued $1.0 billion principal amount of 3.750% convertible senior notes due August 2031, resulting in net proceeds of $983.2 million.
- In July 2026, the company issued €600.0 million of 3.625% senior unsecured notes due July 2032.
Analysis
Realty Income delivered higher third-quarter revenue, net income available to common stockholders, FFO, Normalized FFO, and AFFO versus the prior-year quarter. AFFO per diluted share increased 3.7% to $1.12 from $1.08, while FFO per diluted share was $1.10 compared with $1.07. For the nine-month period, AFFO per diluted share was $3.35 compared with $3.19 and net income per share was $1.13 compared with $0.84.
Portfolio operating indicators remained stable. Occupancy was 98.8% at September 30, 2026, equal to June 30, 2026 and above 98.7% at September 30, 2025. Same Store Rental Revenue grew 1.1% for both the third quarter and first nine months. The company re-leased properties at a 103.5% Rent Recapture Rate in the quarter, based on $67.6 million of new Annualized Base Rent compared with $65.3 million of prior annual rent on the same units.
Investment activity remained substantial. The company reported $2,566.4 million of total third-quarter investments, with a $2,230.3 million Pro-Rata Share and a 6.8% Initial Weighted Average Cash Yield. Nine-month investment volume was $7,901.5 million, with a $6,924.6 million Pro-Rata Share. The company also expanded its European private capital platform through a KKR joint venture supported by a €528.0 million investment for a 49% equity interest.
The funding profile combined equity, convertible debt, and unsecured debt issuance. Third-quarter common-stock sale proceeds were $472.5 million, and unsettled ATM forwards represented $1,090.1 million as of September 30, 2026. The company issued $1.0 billion principal amount of convertible senior notes in August and €600.0 million of senior unsecured notes in July. Reported leverage was 5.4 x Net Debt/Annualized Pro Forma Adjusted EBITDA re, or 5.2 x inclusive of unsettled ATM forward equity.
Management raised 2026 AFFO per share guidance to $4.45 - $4.46 from $4.44 - $4.45 and reaffirmed the $10.0 billion investment-volume target. Same-store rent growth guidance remained 1.1% - 1.3% and occupancy guidance was Above 98.5%. The revised net income per share outlook was $1.55 - $1.56 versus prior guidance of $1.59 - $1.60. Items requiring attention include the rise in third-quarter impairment provisions to $111,645 thousand, nine-month credit-loss provisions of $60,573 thousand, and higher third-quarter interest expense of $333,564 thousand.
Management, verbatim
We delivered another quarter of strong operating performance, reflecting the resilience of Realty Income’s business model, the quality of our portfolio, and the consistent execution of our team. As a result, we are raising our 2026 AFFO per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment volume target, which is supported by a well-funded balance sheet.
Sumit Roy, President and Chief Executive Officer of Realty Income
We have deliberately expanded our sources of capital and global investment capabilities, positioning us to prudently allocate capital. This quarter, we funded investments at a realized leverage-neutral spread of approximately 170 basis points and have fully prefunded our equity needs for the remainder of the year.
Sumit Roy, President and Chief Executive Officer of Realty Income
Not in the filing
stated, not guessed- Operating income was not reported.
- Gross margin was not reported.
- Segment revenue was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Prior-quarter comparisons for the reported income statement, FFO, AFFO, and cash-flow metrics were not reported.
- A prior earnings release outlook section was not provided separately for comparison with reported actual results.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.