Realty Income boosts 2026 investment guidance to $9.5B and AFFO outlook to $4.41–4.44
Realty Income generated Q1 net income of $311.8 million ($0.33/share) and AFFO per share grew 6.6% to $1.13, investing $2.8 billion ($2.6B share) at a 7.1% yield. It formed a $1.0 billion Apollo partnership and raised full-year investment guidance to $9.5 billion with AFFO guidance of $4.41–4.44 per share.
1. Q1 2026 Operating Results
Realty Income reported net income available to common stockholders of $311.8 million, or $0.33 per share, up from $249.8 million and $0.28 per share in Q1 2025. Adjusted funds from operations per share rose 6.6% to $1.13 on total revenue of $1,548.7 million, with a rent recapture rate of 103.4%.
2. Investments and Portfolio Performance
During the quarter, the company invested $2.8 billion, with a pro-rata share of $2.6 billion, at an initial weighted average cash yield of 7.1%. As of March 31, it held interests in 15,571 properties across 92 industries, maintaining 98.9% portfolio occupancy and a weighted average remaining lease term of 8.7 years.
3. Strategic Partnerships and Capital Markets
The company formed a strategic partnership with Apollo, committing $1.0 billion to existing retail assets and completed a $1.7 billion cornerstone raise for its U.S. Core Plus fund with GIC. In April, it issued $800 million of 4.75% senior unsecured notes due 2033 and executed a €436 million cross-currency swap at a blended coupon of 4.16%.
4. Increased Guidance and Dividend Profile
In response to strong deployment momentum, full-year investment guidance was raised to $9.5 billion from $8.0 billion, and AFFO per share guidance was increased to $4.41–4.44, implying 3.0%–3.7% growth. The annualized dividend was set at $3.246 per share following the 114th consecutive quarterly increase.