Realty Income Price Target Raised to $65 with Neutral Outlook
Evercore ISI raised its price target on Realty Income to $65 from $62 while maintaining a neutral rating after Q4 2025 results showing AFFO per share of $1.08 and 98.9% occupancy. The REIT invested $2.4 billion in Q4 and deployed $6.3 billion in 2025, selling 425 properties for $744 million.
1. Price Target Revision by Evercore ISI
Evercore ISI lifted its price target on Realty Income to $65 from $62 while keeping an In Line rating, reflecting adjustments made after reviewing the REIT’s Q4 2025 performance and outlook.
2. Q4 2025 Financial Performance
Realty Income reported AFFO per share of $1.08 for Q4 and $4.28 for the full year, supported by 98.9% portfolio occupancy and a 103.9% rent recapture rate, indicating resilient rental income stability.
3. Investment and Disposition Activities
The company invested $2.4 billion in new acquisitions during Q4 and deployed $6.3 billion in 2025 at a 7.3% initial cash yield, while selling 425 underperforming properties for $744 million to enhance asset quality and manage risk.
4. International Expansion and Partnerships
Realty Income committed $200 million to an industrial portfolio in Mexico through partnerships with GIC and Hines and formed a $1.5 billion joint venture with GIC focused on U.S. build-to-suit industrial properties, beginning with a $58.5 million Dallas acquisition.