Realty Income (NYSE:O) Announces Quarterly Earnings Results

Realty Income (NYSE:O) posted its earnings results on Tuesday. The real estate investment trust reported $1.08 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.08, Briefing.com reports. The company had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.40 billion. Realty Income had a net margin of 18.41% and a return on equity of 2.69%. The firm’s revenue was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.05 EPS. 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 Up 1.1%

NYSE O traded up $0.70 during trading on Thursday, hitting $66.69. 2,707,006 shares of the company’s stock traded hands, compared to its average volume of 6,526,805. The stock has a fifty day moving average of $60.80 and a two-hundred day moving average of $59.29. Realty Income has a 12-month low of $50.71 and a 12-month high of $67.15. The firm has a market cap of $61.34 billion, a P/E ratio of 57.00, a PEG ratio of 3.93 and a beta of 0.79. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.53 and a quick ratio of 1.53.

Realty Income Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Friday, March 13th. Stockholders 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 payout ratio is presently 300.00%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on O shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Realty Income in a research report on Monday, December 29th. Royal Bank Of Canada upped their target price on shares of Realty Income from $61.00 to $70.00 and gave the stock an “outperform” rating in a report on Wednesday. Stifel Nicolaus raised their price target on shares of Realty Income from $67.75 to $70.50 and gave the company a “buy” rating in a report on Wednesday. Wells Fargo & Company boosted their price target on shares of Realty Income from $59.00 to $60.00 and gave the company an “equal weight” rating in a research report on Tuesday, November 25th. Finally, Wall Street Zen downgraded Realty Income from a “hold” rating to a “sell” rating in a research report on Tuesday, February 3rd. Six analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $64.27.

Realty Income News Summary

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

• Positive Sentiment: Q4 funds-from-operations/AFFO met Street expectations while revenue grew ~11% y/y and the company highlighted high portfolio occupancy and rent recapture — a reassurance for income investors. Realty Income’s Q4 AFFO Meets Estimates, Revenues Beat & Rise Y/Y
• Positive Sentiment: Analysts raised price targets (Stifel, RBC), signalling renewed buy-side interest and giving technical/psychological support to the shares. Realty Income price-target increase (TickerReport)
• Positive Sentiment: Short interest fell sharply (~18.5% month-over-month to ~27.1M shares), reducing a potential bearish engine and lowering upside pressure from short-covering volatility.
• Neutral Sentiment: The company outlined an ambitious growth plan (targeting ~$8B of investments in 2026 and expanding global partnerships), which supports future cash-flow growth but raises execution and funding questions. Realty Income targets $8B in 2026 investments while expanding global partnerships
• Neutral Sentiment: Positive media coverage and dividend-focused write-ups are reinforcing income-investor demand for Realty Income as a high-yield, long-duration holding. This Elite High-Yielding Monthly Dividend Stock is Hitting the Accelerator in 2026
• Negative Sentiment: The reported GAAP EPS missed materially (reported $0.32 vs. ~$1.08 expected), which feeds headline risk and highlights volatility in EPS reporting even though REIT investors focus more on FFO. Realty Income Q4 earnings report / transcript
• Negative Sentiment: Management warned of cooling demand and higher property-management costs and flagged annual FFO guidance below some Wall Street estimates — a drag on near-term growth expectations. Realty Income forecasts annual FFO below estimates on slowing demand, higher costs

Institutional Investors Weigh In On Realty Income

Large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in Realty Income by 11.2% in the fourth quarter. Brighton Jones LLC now owns 6,101 shares of the real estate investment trust’s stock worth $326,000 after acquiring an additional 615 shares in the last quarter. Bison Wealth LLC purchased a new stake in Realty Income during the 4th quarter valued at about $571,000. Empowered Funds LLC increased its stake in Realty Income by 8.0% during the 1st quarter. Empowered Funds LLC now owns 18,029 shares of the real estate investment trust’s stock valued at $1,041,000 after purchasing an additional 1,330 shares in the last quarter. Woodline Partners LP raised its holdings in Realty Income by 41.3% in the first quarter. Woodline Partners LP now owns 73,942 shares of the real estate investment trust’s stock worth $4,289,000 after buying an additional 21,603 shares during the last quarter. Finally, Intech Investment Management LLC lifted its stake in shares of Realty Income by 14.9% in the first quarter. Intech Investment Management LLC now owns 25,401 shares of the real estate investment trust’s stock worth $1,474,000 after buying an additional 3,290 shares in the last quarter. Institutional investors own 70.81% of the company’s stock.

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.