Realty Income (NYSE:O) Announces Quarterly Earnings Results, Meets Estimates

Realty Income (NYSE:O) issued its quarterly earnings data on Tuesday. The real estate investment trust reported $1.08 EPS for the quarter, meeting the consensus estimate of $1.08, Zacks reports. The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.39 billion. Realty Income had a return on equity of 2.45% and a net margin of 17.17%.Realty Income’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same period last year, the company earned $1.05 earnings per share. Realty Income updated its FY 2026 guidance to 4.380-4.420 EPS.

Here are the key takeaways from Realty Income’s conference call:

• Management reported resilient operating results in 2025 with AFFO per share of $4.28 for the year, 98.9% occupancy, and 103.9% rent recapture, which they cite as evidence of stable, diversified cash flows.
• They deployed roughly $6.3 billion ($6.2B pro rata) in 2025 at a ~7.3% initial cash yield and guided to ~$8 billion of investments for 2026, emphasizing relationship-driven and structured transactions (including an $800M perpetual preferred with Blackstone).
• Balance-sheet flexibility is highlighted as a competitive advantage: ~$4.1 billion pro rata liquidity, net debt / pro forma adjusted EBITDA of 5.4x, a recent $862M convertible note at 3.5% (used to repurchase shares and repay higher-rate debt), and management says they have >$2B of equity (or ~$3B fully levered) dry powder.
• 2026 guidance is deliberately conservative — AFFO per share of $4.38–$4.42 assumes 40–50 bps of credit-related revenue loss and $30–$40M of lease termination income; management acknowledged downside/credit assumptions account for a significant portion of conservatism.
• Management is expanding capital channels and geographies: they launched a U.S. open-end core-plus fund (~$1.5B cornerstone raise), entered a programmatic GIC JV for ~ $1.5B of industrial build-to-suit, and are entering Mexico — positioning recurring fee income and new sourcing avenues.

Realty Income Trading Down 0.3%

O traded down $0.22 on Tuesday, reaching $66.46. 5,995,838 shares of the company’s stock were exchanged, compared to its average volume of 6,626,421. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.53 and a current ratio of 1.53. The company has a market cap of $61.14 billion, a price-to-earnings ratio of 61.54, a PEG ratio of 3.91 and a beta of 0.79. The company’s 50 day moving average is $60.46 and its 200-day moving average is $59.18. Realty Income has a twelve month low of $50.71 and a twelve month high of $67.15.

Realty Income Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be issued a $0.27 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 4.9%. The ex-dividend date is Friday, February 27th. Realty Income’s dividend payout ratio (DPR) is 300.00%.

Key Realty Income News

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Strategic growth — Realty Income is expanding into Europe and Mexico and launching an institutional asset‑management business to win fee‑based third‑party capital, which diversifies growth away from pure net‑lease cash flow and can improve long‑term revenue mix. Realty Income Broadens Model With New Markets And Fee Based Growth
• Positive Sentiment: Company messaging and outlook — coverage (TipRanks) frames the Q4 update and management outlook as strong, suggesting management is raising or reaffirming guidance for underlying operating metrics (look for AFFO/FFO guidance in the releases). Realty Income Reports Strong Q4 2025 Results, Outlook
• Neutral Sentiment: Top‑line roughly in line — reported revenue for the quarter was about $1.40B versus ~$1.39B consensus; the company filed a full press release and slide deck with operating details (use those to check AFFO/occupancy/growth metrics). Realty Income Announces Operating Results for the Three Months and Year Ended December 31, 2025
• Neutral Sentiment: Analyst focus — previews from outlets like Zacks and 24/7 Wall St. show analysts were watching whether Realty Income closed 2025 inside its raised guidance range; consensus expectations for the year remain an important near‑term anchor. Realty Income Stock: Buy, Hold or Sell Before Q4 Earnings?
• Negative Sentiment: GAAP EPS miss — reported EPS of $0.32 missed consensus (~$1.08) by a wide margin, which likely drove short‑term selling despite revenue parity; investors should review the slide deck/press release for one‑time items or non‑GAAP AFFO/FFO figures that management emphasizes. Realty Income Press Release / Financials (PDF)

Institutional Trading of Realty Income

Several institutional investors have recently added to or reduced their stakes in O. Morgan Stanley grew its position in shares of Realty Income by 21.6% during the 4th quarter. Morgan Stanley now owns 18,291,294 shares of the real estate investment trust’s stock valued at $1,031,080,000 after buying an additional 3,252,091 shares during the last quarter. State Street Corp increased its stake in Realty Income by 2.1% during the 3rd quarter. State Street Corp now owns 63,028,892 shares of the real estate investment trust’s stock valued at $3,831,526,000 after buying an additional 1,295,936 shares during the period. Charles Schwab Investment Management Inc. lifted its position in Realty Income by 5.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,795,930 shares of the real estate investment trust’s stock worth $664,937,000 after purchasing an additional 660,062 shares during the period. Raymond James Financial Inc. boosted its stake in Realty Income by 5.8% during the second quarter. Raymond James Financial Inc. now owns 12,011,841 shares of the real estate investment trust’s stock valued at $692,002,000 after buying an additional 654,958 shares in the last quarter. Finally, Burkehill Global Management LP acquired a new position in shares of Realty Income in the 4th quarter worth approximately $33,822,000. 70.81% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts have issued reports on O shares. Scotiabank raised Realty Income from a “sector perform” rating to a “sector outperform” rating and lifted their price target for the stock from $60.00 to $67.00 in a report on Friday, January 30th. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $61.00 price objective on shares of Realty Income in a research note on Thursday, December 18th. Mizuho cut their price target on shares of Realty Income from $63.00 to $60.00 and set a “neutral” rating on the stock in a report on Wednesday, December 17th. Wall Street Zen cut Realty Income from a “hold” rating to a “sell” rating in a report on Tuesday, February 3rd. Finally, Deutsche Bank Aktiengesellschaft upgraded Realty Income from a “hold” rating to a “buy” rating and set a $69.00 target price on the stock in a report on Tuesday, January 20th. Five analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $63.21.

About Realty Income

Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company’s business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income’s portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.