Realty Income Q2 revenue beats estimates on high occupancy, re-leasing

Realty Income

05/08/2026 21:19

Overview
U.S. real estate investment trust's Q2 revenue grew 9.7% yr/yr, beating analyst expectations
Adjusted FFO per share for Q2 rose 3.8% yr/yr
Company raised 2026 AFFO per share guidance to $4.44-$4.45, reflecting about 4% growth

Outlook
Realty Income raises 2026 AFFO per share guidance to $4.44-$4.45 from $4.41-$4.44
Company now expects 2026 investment volume of $10.0 bln, up from $9.5 bln prior forecast
Company sees 2026 same store rent growth of 1.1%-1.3% and occupancy around 98.5%

Result Drivers
INVESTMENT ACTIVITY - Co invested $2.1 bln at its share in Q2 at a weighted average cash yield of 7.3%
RE-LEASING TERMS - Achieved a rent recapture rate of 102.7% on properties re-leased
PORTFOLIO OCCUPANCY - Portfolio occupancy was 98.8% as of June 30, 2026

Company press release: ID:nPn16KPt0a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.55 bln
$1.47 bln (12 Analysts)
Q2 EPS
 
$0.37
 
Q2 Net Income
 
$344 mln
 
Q2 FFO
 
$996.60 mln
 
Q2 Adjusted FFO Per Share
 
$1.09
 
Q2 FFO Per Share
 
$1.07
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy."
Wall Street's median 12-month price target for Realty Income Corporation is $67.50, about 7.3% above its August 4 closing price of $62.90
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads
Aug 5 - NNN REIT beats Q2 revenue estimates, raises 2026 guidance
Aug 4 - Healthpeak Properties raises 2026 outlook, authorizes $500 mln buyback
Aug 4 - Kimco Realty lifts annual profit forecast, beats quarterly revenue estimates on strong leasing demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)