Realty Income Raises 2026 AFFO Outlook as Q3 AFFO Rises 3.7% to $1.12
Realty Income raised its full-year outlook on Monday after adjusted funds from operations climbed 3.7% to $1.12 per share in the third quarter, as the net-lease REIT kept investing at a pace that puts it on track for $10.0 billion of deals this year.
The company now expects 2026 AFFO of $4.45 to $4.46 per share, up from $4.44 to $4.45 previously, according to its 8-K. It reaffirmed its $10.0 billion investment volume target and has already invested $7.9 billion through September.
The quarter
Total revenue rose 10.3% to $1.62 billion from $1.47 billion a year earlier. Net income available to common stockholders increased 27.9% to $403.9 million, or $0.43 per share, from $315.8 million, or $0.35.
Funds from operations came to $1.10 per share, up from $1.07. Normalized FFO was also $1.10, compared with $1.09.
Realty Income cut its 2026 net income guidance to $1.55 to $1.56 per share from $1.59 to $1.60, while leaving same-store rent growth guidance at 1.1% to 1.3%. It raised its occupancy target to above 98.5%.
Deals and portfolio
The company invested $2.6 billion in the quarter, with its pro-rata share of $2.2 billion at an initial weighted average cash yield of 6.8%. Europe accounted for $940.1 million of that volume. Data centers made up 11.7% of new property cash income, a category the company began reporting separately this quarter.
Portfolio occupancy held at 98.8% across 15,536 properties leased to 1,842 clients. Re-leased properties earned 103.5% of their prior rent, and same-store rental revenue rose 1.1%.
In September, Realty Income took its private capital platform into Europe through a joint venture with KKR, which invested €528.0 million for a 49% stake in a portfolio of 54 net lease properties in four countries. In August, it sold $1.0 billion of 3.750% convertible notes due 2031.
"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," CEO Sumit Roy said. He added that the company has "fully prefunded" its equity needs for the rest of the year.
Dividend
Realty Income announced its 116th consecutive quarterly dividend increase in September. Monthly dividends paid in the quarter rose 0.7% to $0.813 per share, equal to 72.6% of AFFO per share. The annualized dividend stood at $3.258 per share as of Sept. 30.
By the numbers
- $1.12 AFFO per share, up 3.7%
- $4.45 to $4.46 raised 2026 AFFO guidance
- $1.62 billion revenue, up 10.3%
- $2.6 billion invested in the quarter
- 98.8% occupancy
- $5.4 billion available liquidity
Sources
- Realty Income Form 8-K with third-quarter 2026 results, filed Nov. 2, 2026 (accession 0000726728-26-000056)
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