Realty Income Corporation: Beat — EPS $0.43, Revenue $1.62B
Earnings BeatQ3 2026 · After-market
Did Realty Income Corporation (O) beat earnings today?
Yes, Realty Income Corporation (O) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+7.50% surprise
$0.43Actual
Expected: $0.40
vs. year ago +22.9%
Total Revenue+11.83% surprise
$1.62BActual
Expected: $1.45B
vs. year ago +10.3%
Released Nov 02 · 4:05 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $1.62B | $1.47B | +10.3% |
| Revenue detail — reported lines | |||
| └─Rental | $1.48B | $1.39B | +7.0% |
| └─Interest income | $32.25M | $32.63M | -1.2% |
| └─Interest and dividend income | $104.98M | $51.06M | +105.6% |
| └─Other | $553.00K | $357.00K | +54.9% |
| Net Income | $432.14M | $317.67M | +36.0% |
| GAAP Basic EPS | $0.43 | $0.35 | +22.9% |
| GAAP Diluted EPS | $0.43 | $0.35 | +22.9% |
| FFO Basic | $1.10 | $1.07 | +2.8% |
| FFO Diluted | $1.10 | $1.07 | +2.8% |
| Normalized FFO Basic | $1.11 | $1.09 | +1.8% |
| Normalized FFO Diluted | $1.10 | $1.09 | +0.9% |
| AFFO Basic | $1.12 | $1.09 | +2.8% |
| AFFO Diluted | $1.12 | $1.08 | +3.7% |
Financial Outlook / Guidance
| Metric | Next Quarter Outlook | FY2026 Outlook | Expected |
|---|---|---|---|
| Net income per share | — | $1.55-$1.56 (prev. $1.59-$1.60) | $1.62Missed -4.01% |
| AFFO per share | — | $4.45-$4.46 (prev. $4.44-$4.45) | — |
| Same store rent growth | — | 1.1%-1.3% (prev. 1.1%-1.3%) | — |
| Occupancy | — | Above 98.5% (prev. Approx 98.5%) | — |
| Cash G&A expenses | — | 21-22 bps (prev. 21-22 bps) | — |
| Property expenses | — | 1.3%-1.5% (prev. Approx 1.5%) | — |
| Investment volume | — | $10.0B (prev. $10.0B) | — |
| Lease termination income | — | $45-$50M (prev. $45-$50M) | — |
Business Highlights
- ➤Announced the 116th consecutive quarterly dividend increase and 136th since its 1994 NYSE listing.
- ➤Expanded the private capital platform into Europe through a strategic joint venture with KKR.
- ➤KKR invested €528.0M for a 49% equity interest in a European joint venture.
- ➤The European joint venture comprises 54 stabilized net lease properties across four countries.
- ➤Owned or held interests in 15,536 properties leased to 1,842 clients in 96 industries.
- ➤Portfolio occupancy was 98.8% as of September 30, 2026.
- ➤Issued $1.0B of 3.750% convertible senior notes due August 2031.
- ➤Repurchased approximately 3.0M shares concurrently with convertible-note offering pricing.
- ➤Recast and expanded multicurrency unsecured revolving credit facilities to $5.5B capacity.
- ➤Expanded global commercial paper programs to $5.5B combined capacity.
- ➤Issued €600.0M of 3.625% senior unsecured notes due July 2032.
- ➤Declared 676 consecutive monthly dividends and remains an S&P 500 Dividend Aristocrats member.
Management Commentary
Sumit Roy, President and Chief Executive Officer of Realty Income
“We delivered another quarter of strong operating performance, reflecting the resilience of Realty Income's business model, the quality of our portfolio, and the consistent execution of our team.”
Sumit Roy, President and Chief Executive Officer of Realty Income
“As a result, we are raising our 2026 AFFO per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment volume target, which is supported by a well-funded balance sheet.”
Sumit Roy, President and Chief Executive Officer of Realty Income
“We have deliberately expanded our sources of capital and global investment capabilities, positioning us to prudently allocate capital. This quarter, we funded investments at a realized leverage-neutral spread of approximately 170 basis points and have fully prefunded our equity needs for the remainder of the year. As economic and cost of capital volatility persists, we remain focused on capital allocation while staying true to our ethos of delivering reliable, income-oriented returns for our investors.”