Realty Income — Three and Nine Months Ended September 30, 2026 Earnings Summary

Financial Performance:

• Total revenue was $1,621.6 million for the three months ended September 30, 2026, compared to $1,470.6 million in the prior year period; for the nine months ended September 30, 2026, revenue was $4,718.0 million compared to $4,261.4 million.
• Net income available to common stockholders was $403.9 million ($0.43 per share) for the three months ended September 30, 2026, versus $315.8 million ($0.35 per share) in the prior year; for the nine months, net income was $1,059.7 million ($1.13 per share) versus $762.5 million ($0.84 per share).
• Adjusted Funds From Operations (AFFO) increased 3.7% to $1.12 per share for the three months ended September 30, 2026, compared to $1.08 per share in the prior year; for the nine months, AFFO per share was $3.35 compared to $3.19.
• Funds From Operations (FFO) available to common stockholders was $1,041.0 million ($1.10 per share) for the three months ended September 30, 2026, compared to $981.1 million ($1.07 per share) in the prior year; for the nine months, FFO was $3,031.2 million ($3.23 per share) compared to $2,874.5 million ($3.18 per share).
• Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4x as of September 30, 2026.
• Same Store Rental Revenue for 14,443 properties increased 1.1% to $1,162.0 million for the three months ended September 30, 2026, and 1.1% to $3,475.2 million for the nine months ended September 30, 2026, compared to the prior year periods.
• Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $708.8 million, compared to $623.7 million in the prior year period.

Guidance and Future Outlook:

• Realty Income raised its 2026 AFFO per share guidance to $4.45–$4.46, compared to the prior guidance of $4.44–$4.45.
• The company reaffirmed its 2026 investment volume target of $10.0 billion.
• 2026 guidance includes Same Store rent growth of 1.1%–1.3%, occupancy above 98.5%, and cash G&A expenses of 21–22 basis points of total Gross Asset Value.
• Management stated that equity needs for the remainder of the year are fully prefunded.

Business Segments and Product Lines:

• As of September 30, 2026, the company owned or held interests in 15,536 properties leased to 1,842 clients across 96 industries, with a weighted average remaining lease term of approximately 8.5 years.
• Portfolio occupancy was 98.8% as of September 30, 2026.
• Rent Recapture Rate was 103.5% for properties re-leased during the three months ended September 30, 2026, and 103.1% for the nine months ended September 30, 2026.
• Total investments for the three months ended September 30, 2026, were $2.566 billion (Pro-Rata Share: $2.230 billion) at an Initial Weighted Average Cash Yield of 6.8%; for the nine months, total investments were $7.902 billion (Pro-Rata Share: $6.925 billion) at an Initial Weighted Average Cash Yield of 7.1%.
• Real estate acquisitions for the nine months ended September 30, 2026, totaled $5.543 billion (Pro-Rata Share: $4.585 billion) across 365 properties.
• Real estate properties under development for the nine months ended September 30, 2026, totaled $436.4 million (Pro-Rata Share: $433.6 million) across 67 properties.
• Credit investments for the nine months ended September 30, 2026, totaled $1.922 billion (Pro-Rata Share: $1.906 billion).
• Investment Grade Clients represented 53% of annualized cash income generated by investments for the three months ended September 30, 2026, and 44% for the nine months ended September 30, 2026.

Market and Competitive Landscape:

• The company expanded its private capital platform into Europe through a strategic joint venture with KKR, supported by an initial €528.0 million investment.
• The joint venture with KKR comprises 54 stabilized net lease properties across four European countries.
• The company operates in all 50 U.S. states, the United Kingdom, and eight other countries in Europe.

Risks and Challenges:

• The press release notes that economic and cost of capital volatility persists, though specific risk factors are detailed in the "Forward-Looking Statements" section (e.g., interest rate fluctuations, credit market volatility, and regulatory changes).

Management Commentary and Tone:

• Sumit Roy, President and Chief Executive Officer, described the quarter as delivering "strong operating performance," citing the resilience of the business model, portfolio quality, and consistent execution.
• Management highlighted the deliberate expansion of capital sources and global investment capabilities to prudently allocate capital.
• The company funded investments at a realized leverage-neutral spread of approximately 170 basis points during the quarter.

Other Key Points:

• The company announced the 116th consecutive quarterly dividend increase, marking the 136th increase since its 1994 NYSE listing; the annualized dividend as of September 30, 2026, was $3.258 per share.
• Monthly dividends paid per share increased 0.7% to $0.813 in the three months ended September 30, 2026.
• In August 2026, the company issued $1.0 billion of 3.750% convertible senior notes due August 2031, resulting in net proceeds of $983.2 million.
• Approximately $188.7 million of the convertible note proceeds were used to repurchase approximately 3.0 million shares of common stock.
• In July 2026, the company closed on the recast and expansion of its $5.5 billion multicurrency unsecured revolving credit facilities (upsized from $4.0 billion) and expanded its global commercial paper programs to $5.5 billion (upsized from $3.0 billion).
• In July 2026, the company issued €600.0 million of 3.625% senior unsecured notes due July 2032.
• During the three months ended September 30, 2026, the company raised $472.5 million from the sale of common stock via its ATM program.
• Total available liquidity at the company's Pro-Rata Share was $5.4 billion as of September 30, 2026.
• Property dispositions for the nine months ended September 30, 2026, included 359 properties sold with net sales proceeds of $875.2 million and a gain on sales of real estate of $187.8 million.