$O · REALTY INCOME CORP
Realty Income reported Q3 2026 results with total revenue of $1.622B, net income of $0.43 per share, and AFFO of $1.12 per share. The company raised full-year 2026 AFFO guidance to $4.45–$4.46 and reaffirmed its $10.0B investment volume target. Q3 investment activity totaled $2.6B at a 6.8% initial weighted average cash yield, and the company expanded its private capital platform into Europe through a joint venture with KKR.
- Q3 AFFO per share rose 3.7% YoY to $1.12, up from $1.08 in Q3 2025.
- Total revenue grew 10.3% YoY to $1.622B, driven by $2.6B in Q3 investments at a 6.8% initial cash yield.
- 2026 AFFO per share guidance raised to $4.45–$4.46, up from prior $4.40–$4.44.
- Q3 net income available to common stockholders was $403.9M, or $0.43 per share, vs. $315.8M a year ago.
- Portfolio occupancy held steady at 98.8% with a rent recapture rate of 103.5% on re-leased properties.
Extended-hours trading shows O at $57.66, up 0.14% from the regular close of $57.58 — a muted reaction consistent with a modest guidance raise and in-line quarter for a $54.48B net-lease REIT.
The guidance raise and 3.7% AFFO growth affirm Realty Income's ability to compound despite a higher-rate environment, while the KKR European JV signals a new capital-light growth vector.
Realty Income's 6.8% initial cash yield on $2.6B in Q3 investments and expansion into European private capital via a €528M KKR joint venture underscore the net-lease sector's push toward higher-yielding, diversified global deployment as domestic cap rates remain compressed.
Provisions for impairment of real estate rose to $111.6M in Q3 2026 from $75.4M in Q3 2025, and provisions for credit losses on loans increased to $14.2M from $11.6M — both bear watching as the portfolio scales. Foreign currency and derivative losses remain a recurring drag at $2.5M for the quarter.