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Realty Income (RY6) Q3 2026 Earnings Report

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CH:RY6 Q3 2026 EPS Results

Actual EPS
CHF 0.36
Consensus EPS
CHF 0.34
Beat/Miss
Beat by +CHF 0.02
One Year Ago EPS
CHF 0.29

CH:RY6 Q3 2026 Revenue Results

Actual Revenue
CHF 1.35B
Expected Revenue
CHF 1.19B
Beat/Miss
Beat by +CHF 162.28M
YoY Revenue Growth
+10.38%

Earnings Announcement Details

Quarter
Q3 2026
Date
11/02/2026
Time
After Close
Conference Call
Monday, November 2, 2026
CH:RY6 Upcoming Earnings

Realty Income's next earnings date is estimated for February 23, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

CH:RY6 Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Nov 02, 2026|% Change Since:5.75%|
Earnings Call Sentiment|Positive

The call was predominantly positive. Realty Income reported AFFO growth, raised 2026 guidance, delivered strong investment volume and spreads, expanded European and industrial activity, improved operating guidance and maintained substantial liquidity. The main challenges were higher and volatile interest rates, upcoming debt maturities, data center constraints, European political uncertainty, lower insurance-JV pricing attractiveness and the need to reposition a portfolio still heavily concentrated in U.S. retail. Management presented these issues as manageable through diversified investment and financing alternatives.

Company Guidance

Realty Income raised 2026 AFFO per share guidance to $4.45 to $4.46, reaffirmed its $10 billion investment volume target, increased occupancy guidance to above 98.5%, reduced nonreimbursable expense leakage guidance by 10 basis points at the midpoint to a range of 1.3% to 1.5%, and lowered its expectation for credit loss from 40 basis points to approximately 30 basis points; disposition activity is expected to remain elevated in the fourth quarter, lease termination income is expected to hold at a $45 million to $50 million run rate going forward in 2027, credit loss rates in 2027 are expected to be in that 20 to 30 basis points range, and annual insurance JV equity issuance would be expected to be $1 billion to $1.5 billion based off of our current run rate of acquisitions.

  • AFFO Growth and Raised 2026 GuidanceThird-quarter AFFO per share was $1.12, up 3.7% year-over-year. The company raised 2026 AFFO per share guidance to $4.45 to $4.46, increased guidance by $0.01 at the midpoint, and reaffirmed its $10 billion investment volume target.
  • Strong Investment Volume and SpreadsRealty Income invested approximately $2.6 billion during the quarter, including $2.2 billion at its pro rata share, at a 6.8% cash yield. The investments had a realized leverage-neutral spread of approximately 170 basis points to short-term weighted average cost of capital, and 53% of investment activity was with investment-grade clients.
  • Record Investment Sourcing and SelectivityThe company sourced a record approximately $59 billion of potential investments during the quarter, bringing year-to-date sourcing to more than $120 billion and surpassing its prior full-year record. The quarterly selectivity rate was 4.4%, and 92% of investment activity was relationship-driven.
  • European Investment GrowthRealty Income invested approximately $940 million in Europe, representing 42% of pro rata investment volume, at an initial weighted average cash yield of 7.1%. More than 85% of European real estate investment volume was industrial at an initial cash yield of 6.9%. Management remained constructive on Continental Europe heading into the balance of the year.
  • Industrial Portfolio ExpansionIndustrial was the largest investment area during the quarter, with approximately $1.15 billion invested at an initial weighted average cash yield of 6.5%. Weighted average contractual rent increases were 2.5% domestically, while international leases were largely tied to inflation and market rent growth.
  • Dallas Industrial Mark-to-Market OpportunityThe company acquired a large logistics park adjacent to DFW Airport. In-place rents were approximately 45% below market, and management stated that 100% of the mark-to-market opportunity is achievable within the next 3.5 years.
  • Credit Investments Added as a Capital Allocation LeverRealty Income invested approximately $250 million in credit investments during the quarter, representing over 10% of total volume across retail, industrial and data centers. Management stated that these investments generally have higher collateral, lower loan-to-value ratios and higher rates than comparable equity investments; the third-quarter credit investments had an approximately 3.4-year duration.
  • Data Center Strategy Remains ConstructiveManagement remained constructive on data centers as a long-term investment area while maintaining a highly selective approach focused on top-tier, supply-constrained markets, experienced operators, strong investment-grade hyperscale clients, long-duration leases, strong rent escalators and favorable lease structures.
  • Successful Portfolio Dispositions and Capital RecyclingThe company completed approximately $527 million of dispositions during the quarter, including $395 million of occupied sales at a 7.1% net cap rate. Year-to-date disposition proceeds reached approximately $875 million, exceeding full-year 2025 disposition volume. Management said the strategy includes selling well-performing assets when private-market value and reinvestment returns create a better outcome.
  • Liquidity and Conservative Debt ProfileRealty Income ended the quarter with approximately $5.4 billion of available liquidity. Net debt to annualized pro forma adjusted EBITDA was 5.4x, or 5.2x including $1.1 billion of unsettled ATM equity, and over 94% of pro rata debt was fixed rate.
  • Diversified Financing and Attractive Funding CostsThe company financed approximately $2.2 billion of pro rata investment activity at a blended year-one cost of capital of approximately 5%, producing a leverage-neutral investment spread of approximately 170 basis points. It issued EUR 600 million of senior unsecured notes at an effective annual yield of approximately 3.7% and issued $1 billion of 3.75% convertible senior notes, generating approximately $950 million in net proceeds.
  • Reduced Reliance on Public EquityApproximately $470 million was settled through the ATM program during the quarter. Public equity funded only 19% of pro rata investment volume year-to-date, compared with an annual average of 47% over the prior three years. Management stated that the approximately $1.1 billion of forward equity was raised at more than $60 per share.
  • KKR European Joint VentureKKR invested EUR 528 million for a 49% equity interest in a portfolio of 54 retail and industrial assets across four European countries at a 5.9% initial cap rate, including recurring asset management fees. Realty Income has the ability to call KKR's interest between years 10 and 17 to effectuate a 6.4% IRR, and management described the arrangement as a source of permanent equity and capital-light asset management fees.
  • Internal Funding Sources Supported 2026 NeedsThrough the first nine months of the year, adjusted free cash flow and disposition proceeds totaled over $700 million and $875 million, respectively. Management said these sources addressed a substantial portion of remaining 2026 funding needs while preserving significant liquidity and conservative leverage supporting the company's A-rated balance sheet.
  • Improved Operating GuidanceThe company increased occupancy guidance to above 98.5%, reduced nonreimbursable expense leakage guidance by 10 basis points at the midpoint to a range of 1.3% to 1.5%, and lowered expected credit loss from 40 basis points to approximately 30 basis points. Management attributed the changes to strong asset management execution and better-than-expected tenant credit.
  • Healthy Fourth-Quarter Pipeline and PrefundingManagement described the fourth-quarter investment volume and yield outlook as healthy and said the pipeline was fully prefunded from an equity perspective at meaningfully accretive investment spreads.
  • Open-Ended Fund Capital RaisingThe company raised approximately $38 million to $39 million of equity capital for its open-ended fund. Management said the fund was fully deployed on the equity side, including the new capital, and is focused on high-growth investments with lower yields that would not be pursued on balance sheet.
  • Lease Termination Income Expected to Remain StableManagement said lease termination income had been approximately $45 million to $50 million annually for the last two years and expected that run rate to hold going forward in 2027.
  • Normalized Credit Loss OutlookManagement said that, excluding the pandemic year, historical annual credit losses had been closer to 20 to 21 basis points. It expects 2027 credit losses to remain in a similar historical range of 20 to 30 basis points, citing the health and diversification of the portfolio.
  • Lower AFFO Payout Ratio and Broader OptionalityManagement stated that the AFFO payout ratio was among the lowest in Realty Income's history. It also emphasized that the company now has more ways to invest and fund investments than at any point in its history, with the goal of supporting durable per-share growth and reliable income.

CH:RY6 Earnings History

CH:RY6 earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 23, 20272026 (Q4)0.35-0.27――
Nov 02, 20262026 (Q3)0.340.360.2922.86% (+0.07)
Aug 05, 20262026 (Q2)0.330.310.1868.18% (+0.12)
May 06, 20262026 (Q1)0.340.270.2317.86% (+0.04)
Feb 24, 20262025 (Q4)0.320.270.1939.13% (+0.07)
Nov 03, 20252025 (Q3)0.290.290.2516.67% (+0.04)
Aug 06, 20252025 (Q2)0.280.180.24-24.14% (-0.06)
May 05, 20252025 (Q1)0.300.230.1375.00% (+0.10)
Feb 24, 20252024 (Q4)0.310.190.25-23.33% (-0.06)
Nov 04, 20242024 (Q3)0.290.250.27-9.09% (-0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed