Realty Income (RY6) Q2 2026 Earnings Report

The call conveyed robust operating performance, a constructive investment pipeline, strengthened liquidity and capital markets execution, plus a programmatic push into data centers and expanded private capital vehicles. The company raised AFFO guidance, increased full-year investment guidance, improved portfolio quality metrics (occupancy, investment-grade exposure, rent recapture) and secured an A‑level rating from Fitch. Notable risks discussed included cap-rate uncertainty amid interest-rate volatility, localized financing cost challenges (e.g., UK), watch-list credit exposure, and the inherent development and residual-value risks in the hyperscale data center market. Overall the positives — guidance raise, capital platform enhancements, strong liquidity, and durable leasing and portfolio metrics — materially outweighed the identified challenges.

Realty Income raised its 2026 AFFO per share guidance midpoint by $0.02 to a new range of $4.44–$4.45 (supported by Q2 AFFO/sh of $1.09, +3.8%, and YTD AFFO/sh $2.22, +5.2%), increased full‑year acquisitions guidance from $9.5B to $10B (expecting ~ $9B at‑share deployments), and held credit‑loss guidance at ~40 bps of rental revenue while keeping lease‑termination income guidance at $45–$50M; the company finished Q2 with ~$3.5B of available liquidity (pro forma >$5.7B after expanding the revolver and commercial paper to $5.5B each, a €600M bond at 3.7% and ~$1.3B of unsettled ATM equity), reported net debt/annualized pro‑forma adjusted EBITDA of 5.4x (5.2x incl. ATM), aims to stay within a ~5.5x leverage target and keep variable‑rate debt ≤10% of total, and has issued $3.0B of new debt YTD at a blended coupon of 3.9% (vs. $1.4B matured at ~4%).