Realty Income lifts 2026 funds from operations forecast on higher rental rate

Aug. 5 - Realty Income O.N on Wednesday raised its forecast for annual adjusted funds from operations (FFO), banking on higher rental growth for its properties.

The Real Estate Investment Trust (REIT) has a portfolio of more than 15,500 properties leased to clients in the retail, industrial, restaurant and gaming industries.

Here are more details:

• The company, which counts Walgreens and Dollar General among its customers, expects its 2026 adjusted FFO to range between $4.44 and $4.45 per share, compared with its previous forecast of $4.41 to $4.44.
• It raised the lower end of its full-year same-store rent growth forecast to 1.1% to 1.3% from a prior view of 1% to 1.3%.
• Realty has been expanding its investments in data center properties as demand for computing capacity rises amid the AI boom.
• The company said in July it would invest up to $1.4 billion to acquire three data center assets through a joint venture with Cloud Capital and hold a 45% equity stake.
• Realty raised its full-year investment forecast to $10 billion from $9.5 billion previously.
• It posted adjusted FFO of $1.09 per share for the quarter ended June 30, in line with analysts' average estimate, according to data compiled by LSEG.