Realty Income Lifts 2026 AFFO Guidance To $4.45–$4.46 A Share, Trims Net Income Outlook
The landlord reaffirmed its $10.0 billion investment target as third-quarter net income rose to $403.9 million.
Realty Income raised its 2026 outlook for adjusted funds from operations (AFFO), the cash earnings measure REITs favor, to $4.45–$4.46 per share from $4.44–$4.45, while cutting its net income per share forecast to $1.55–$1.56 from $1.59–$1.60. The company, which calls itself The Monthly Dividend Company, reported the changes with third-quarter results in an 8-K filed Monday.
Quarter's numbers
Net income available to common stockholders rose to $403.9 million, or $0.43 per share, from $315.8 million, or $0.35, a year earlier. Total revenue was $1,621.6 million, against $1,470.6 million.
AFFO per share rose 3.7% to $1.12. For the first nine months, AFFO per share was $3.35, compared with $3.19 a year earlier.
The company's net income figure includes provisions for impairment of real estate, which were $111.6 million in the quarter versus $75.4 million a year earlier, and a $113.9 million gain on property sales. The guidance for net income per share excludes future impairment and foreign currency or derivative gains or losses, which the company says it cannot forecast.
Guidance changes beyond AFFO
Realty Income now expects occupancy above 98.5%, up from approximately 98.5%, and non-reimbursable property expenses of 1.3% to 1.5% of revenue, from approximately 1.5%. It kept its $10.0 billion investment volume target; $7.9 billion has been invested so far this year.
CEO Sumit Roy said the company has "fully prefunded our equity needs for the remainder of the year."
Deals and capital raised
In the third quarter the company invested $2.6 billion, with its pro-rata share at $2.2 billion at an initial weighted average cash yield of 6.8%. It sold 182 properties for net proceeds of $526.6 million.
Separately, in September KKR invested €528.0 million for a 49% stake in a new euro-denominated joint venture holding 54 net lease properties in four European countries. In August Realty Income issued $1.0 billion of 3.750% convertible senior notes due August 2031, with net proceeds of $983.2 million.
About 18.5 million shares remain unsettled under forward sale agreements, representing roughly $1.1 billion in expected net proceeds as of November 2. Net debt stood at 5.4 times annualized pro forma adjusted EBITDA.
Management discussed the results on a conference call at 2:00 p.m. PST Monday.
Sources
- 8-K Filing — REALTY INCOME CORP (O) — SEC EDGAR
- Exhibit o-991q32026.htm — REALTY INCOME CORP 8-K exhibit — SEC EDGAR
- Exhibit realtyincomeq32026supple.htm — REALTY INCOME CORP 8-K exhibit — SEC EDGAR
- Realty Income Announces Operating Results for the Three and Nine Months Ended September 30, 2026 — prnewswire.com
