REALTY INCOME ANNOUNCES OPERATING RESULTS FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 SAN DIEGO, CALIFORNIA, November 2, 2026...Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company ® , today announced operating results for the three and nine months ended September 30, 2026. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.
• Net income available to common stockholders was $403.9 million, or $0.43 per share
• Adjusted Funds from Operations ("AFFO") increased 3.7% to $1.12 per share, compared to the three months ended September 30, 2025
• Invested $2.6 billion; our Pro-Rata Share was $2.2 billion at an Initial Weighted Average Cash Yield of 6.8%
• Expanded our private capital platform into Europe through a strategic joint venture with KKR, supported by an initial €528.0 million investment
• Issued $1.0 billion aggregate principal amount of 3.750% convertible senior notes due August 2031
“We delivered another quarter of strong operating performance, reflecting the resilience of Realty Income’s business model, the quality of our portfolio, and the consistent execution of our team,” said Sumit Roy, President and Chief Executive Officer of Realty Income. “As a result, we are raising our 2026 AFFO per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment volume target, which is supported by a well-funded balance sheet.”
“We have deliberately expanded our sources of capital and global investment capabilities, positioning us to prudently allocate capital. This quarter, we funded investments at a realized leverage-neutral spread of approximately 170 basis points and have fully prefunded our equity needs for the remainder of the year. As economic and cost of capital volatility persists, we remain focused on capital allocation while staying true to our ethos of delivering reliable, income-oriented returns for our investors.”
The following summarizes our select financial results (dollars in millions, except per share data):
(1) The calculation to determine net income available to common stockholders includes provisions for impairment of real estate, provisions for credit losses on loans and financing receivables, gain on sales of real estate, and foreign currency gain and loss. These items can vary from quarter to quarter and can significantly impact net income available to common stockholders and period-to- period comparisons.
(2) FFO, Normalized FFO, and AFFO are non-GAAP financial measures. Normalized FFO is based on FFO and adjusted to exclude merger, transaction, and other costs, net and AFFO further adjusts Normalized FFO for unique revenue and expense items. Please see the Glossary for our definitions and explanations of how we utilize these metrics. Please see pages 10 and 11 herein for reconciliations to the most directly comparable GAAP measure.
In September 2026, we announced the 116 th consecutive quarterly dividend increase, which is the 136 th increase since our listing on the New York Stock Exchange ("NYSE") in 1994. The annualized dividend amount as of September 30, 2026 was $3.258 per share. The amount of monthly dividends paid per share increased 0.7% to $0.813 in the three months ended September 30, 2026 , as compared to $0.807 during the three months ended September 30, 2025 , representing 72.6% of our diluted AFFO per share of $1.12 during the three months ended September 30, 2026. - 2 -
As of September 30, 2026, we owned or held interests in 15,536 properties, which were leased to 1,842 clients doing business in 96 industries. Our diversified portfolio of commercial properties under long-term, net lease agreements is actively managed with a weighted average remaining lease term of approximately 8.5 years. Our portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of September 30, 2026, portfolio occupancy was 98.8% with 182 properties available for lease or sale, as compared to 98.8% as of June 30, 2026 and 98.7% as of September 30, 2025. Our property-level occupancy rates exclude properties with ancillary leases only, such as cell towers and billboards, and properties with possession pending, and include properties owned by unconsolidated joint ventures. The following summarizes our portfolio activity for the periods indicated below:
Three months ended September 30, 2026 Properties available for lease as of June 30, 2026 188 ───────────────────────────────────────────────────────────── Lease expirations(1) 274 Re-leases to same client -213 Re-leases to new client -9 Vacant dispositions -58 Properties available for lease as of September 30, 182 2026 Nine months ended September 30, 2026 Properties available for lease as of December 31, 173 2025 Lease expirations(1) 1,074 Re-leases to same client -818 Re-leases to new client -66 Vacant dispositions -181 Properties available for lease as of September 30, 182 2026
(1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the periods indicated above.
During the three months ended September 30, 2026, the new Annualized Base Rent on re-leased units was $67.6 million, as compared to the previous annual rent of $65.3 million on the same units, representing a Rent Recapture Rate of 103.5% on the re-leased units.
During the nine months ended September 30, 2026, the new Annualized Base Rent on re-leased units was $251.1 million, as compared to the previous annual rent of $243.5 million on the same units, representing a Rent Recapture Rate of 103.1% on the re-leased units. Please see the Glossary for our definitions of Annualized Base Rent and Rent Recapture Rate. - 3 -
The following table summarizes our investments for the periods indicated below (dollars in millions):
Three months Nine months ended ended Supplementary September 30, September 30, Information(1… 2026 2026 ────────────────────────────────────────────────────────────────────────────── Total U.S. and other $ 1,290.2 $ 4,301.6 volume Initial Weighted Average Cash 6.5 % 7.1 % Yield(4)- U.S. and other Total Europe $ 940.1 $ 2,623.0 volume Initial Weighted Average Cash 7.1 % 7.0 % Yield(4)- Europe Investment Grade 53 % 44 % Clients(6) Initial Weighted Average Cash 6.1 % 5.9 % Yield(4)- U.S. Core Plus Fund Initial Weighted Average Cash 6.6 % 7.2 % Yield(4)- U.S. wholly-owned
(1) Reflects adjustments for our Pro-Rata Share based on our proportionate economic ownership of our joint ventures (which adds our economic ownership percentage of unconsolidated entities and deducts noncontrolling interests). Please see the Glossary for our definition of Pro-Rata Share.
(2) Non-wholly owned represents U.S. and European investments not 100% owned by Realty Income, excluding the U.S. Core Plus Fund.
(3) For the three months ended September 30, 2026, the new properties are 31.0% retail, 57.3% industrial, and 11.7% data center property types based on Cash Income. For the nine months ended September 30, 2026, the new properties are 42.6% retail, 51.6% industrial, and 5.8% data center property types based on Cash Income. Starting in the third quarter of 2026, data centers are reported as a separate property type; year-to-date investment activity has been recast to conform to current presentation. Please see the Glossary for our definition of Cash Income.
(4) Initial Weighted Average Cash Yield is a supplemental operating measure. Cash Income used in the calculation of Initial Weighted Average Cash Yield for investments for the three and nine months ended September 30, 2026 includes $0.3 million and $4.1 million, respectively, received as settlement credits as the reimbursement of free rent periods. Please see the Glossary for our definitions of these metrics.
(5) Represents various loan investments across the U.S., Europe, and Mexico, as well as a preferred equity investment held by the U.S. Core Plus Fund.
(6) Represents approximate percentage of annualized cash income generated by investments from Investment Grade Clients at the date of investment. Please see the Glossaryfor our definition of Investment Grade Clients. - 4 -
The following summarizes our Same Store Rental Revenue for 14,443 properties under lease for the three and nine months ended September 30, 2026 and 2025 (dollars in millions):
For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of September 30, 2026. Same Store Rental Revenue also includes our Pro-Rata Share of rental revenue from properties owned by unconsolidated joint ventures and amounts attributable to noncontrolling interests based on their respective ownership percentages. Please see the Glossary for our definitions of Same Store Pool and Same Store Rental Revenue.
As of September 30, 2026, we had $5.4 billion total available liquidity at our Pro-Rata Share (1) , comprised of the components summarized below (dollars in millions):
Cash and cash equivalents(2) $ 355.8 Availability under credit facilities(3) 5,485.1 Unsettled At-the-Market ("ATM") 1,090.1 forwards(4) Less: commercial paper borrowings -1,540.7 Total available liquidity at our $ 5,390.3 Pro-Rata Share
(1) Please see the Glossary for our definition of Pro-Rata Share for more information.
(2) Reflects adjustments based on our proportionate economic ownership of our joint ventures. Calculated as cash and cash equivalents per the consolidated balance sheet of $368.5 million, plus our Pro-Rata Share of unconsolidated entities cash of $25.5 million, less adjustments allocable to noncontrolling interests of $38.2 million.
(3) Represents our availability under the $5.5 billion revolving credit facility and our Pro-Rata Share of availability under the $1.38 billion Fund credit facility, which includes a $1.0 billion revolving facility, and a $380.0 million term loan which was fully drawn as of September 30, 2026.
(4) As of September 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 18.5 million shares of common stock, which have been executed at a weighted average forward price of $58.97 per share (assuming full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates).
During the three months ended September 30, 2026, we raised $472.5 million of proceeds from the sale of common stock at a weighted average price of $60.49 per share, primarily through the settlement of 7.8 million shares of common stock pursuant to forward sale agreements under our ATM program. As of November 2, 2026, approximately 18.5 million shares of common stock subject to ATM forward sale agreements remain unsettled, representing approximately $1.1 billion in expected net proceeds and a weighted average initial gross price of $60.61 per share. ATM net sale proceeds assume full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates.
In September 2026, we expanded our private capital platform into Europe through a strategic partnership with KKR. KKR invested €528.0 million for a 49% equity interest in a newly formed, euro-denominated joint venture comprising 54 stabilized net lease properties across four European countries. - 5 - In August 2026, we issued $1.0 billion principal amount of 3.750% convertible senior notes due August 2031 in a private offering, resulting in net proceeds of $983.2 million. We used approximately $33.2 million of the net proceeds to enter into capped call transactions with a cap price of $83.55 per share of common stock, which represented a premium of 35.0% above the closing price of our common stock of $61.89 per share on the NYSE on August 11, 2026. We also used approximately $188.7 million of the net proceeds to repurchase approximately 3.0 million shares of our common stock concurrently with the pricing of the offering.
In July 2026, we closed on the recast and expansion of our $5.5 billion multicurrency unsecured revolving credit facilities, upsized from the prior $4.0 billion capacity. In addition, we also expanded our global commercial paper programs to a total combined capacity of $5.5 billion, upsized from the prior $3.0 billion combined capacity.
In July 2026, we issued €600.0 million of 3.625% senior unsecured notes due July 2032 (the “2032 Notes”). The public offering price for the 2032 Notes was 99.518% of the principal amount for an effective annual yield to maturity of 3.716%.
Summarized below are approximate estimates of the key components of our 2026 earnings guidance (with year-to-date 2026 actual results for comparison):
Revised 2026 Prior 2026 YTD Actuals at Guidance Guidance(1) September 30, 2026 Net income per $1.55 - $1.56 $1.59 - $1.60 $1.13 share(2) AFFO per share $4.45 - $4.46 $4.44 - $4.45 $3.35 Same store rent 1.1% - 1.3% 1.1% - 1.3% 1.1% growth Occupancy Above 98.5% Approx 98.5% 98.8% Cash G&A expenses (% of total Gross 21 - 22 bps 21 - 22 bps 16 bps Asset Value)(3)(4) Property expenses (non-reimbursa… 1.3% - 1.5% Approx 1.5% 1.3% (% of total revenue)(5) Income tax $100 - $110 $100 - $110 $76 million expenses million million Investment volume (at $10.0 billion $10.0 billion $7.9 billion 100%) Lease $45 - $50 $45 - $50 termination million million $45 million income (1)As issued on August 5, 2026. (2)Net income per share excludes future impairment and foreign currency or derivative gains or losses due to the inherent unpredictabili… of forecasting these items. (3)Cash G&A represents 'General and administrative' expenses as presented in our consolidated statements of income, less share-based compensation costs. (4)Please see the Glossary for our definition of Gross Asset Value. (5)Total revenue excludes client reimbursements.
Summarized below is a reconciliation of estimated net income per share to estimated AFFO per share for the full year guidance:
2026 Per Share YTD Actuals at Guidance September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net income per share $1.55 - $1.56 $1.13 Real estate depreciation $2.73 $2.04 Provisions for impairment of real estate, gain on sales of real $0.14 $0.14 estate, and non-cash credit losses(1) Straight-line rent and amortization of $(0.11) $(0.09) above and below-market leases, net Amortization of deferred financing $0.08 $0.06 costs Amortization of share-based $0.04 $0.03 compensation Merger, transaction, and other costs, $0.02 $0.02 net Other adjustments $0.00 $0.02 AFFO per share $4.45 - $4.46 $3.35 (1)Amounts represent year-to-date actual results. The company does not forecast impairment, gain on sales of real estate, and non-cash credit losses.
In conjunction with the release of our operating results, we will host a conference call on November 2, 2026 at 2:00 p.m. PST to discuss the operating results. To access the conference call, dial (833) 816-1264 (United States) or (412) 317-5632 (International). When prompted, please ask for the Realty Income conference call.
A telephone replay of the conference call can also be accessed by calling (855) 669-9658 (United States) or (412) 317-0088 (International) and entering the conference ID 2991704. The telephone replay will be available through November 9, 2026.
A live webcast will be available in listen-only mode by clicking on the webcast link on the company’s home page at www.realtyincome.com. A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. No access code is required for this replay.
Supplemental Operating and Financial Data for the three and nine months ended September 30, 2026 is available on our corporate website at www.realtyincome.com/investors/quarterly-and-annual-results.
Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the world's leading companies ® . Founded in 1969, we serve our clients as a full- service real estate capital provider. As of September 30, 2026, we have a portfolio of over 15,500 properties in all 50 U.S. states, the United Kingdom ("U.K."), and eight other countries in Europe. We are known as “The Monthly Dividend Company ® ” and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since our founding, we have declared 676 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats ® index for having increased our dividend for over 32 consecutive years. Additional information about the company can be found at www.realtyincome.com. Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (www.realtyincome.com/investors), press releases, SEC filings and public conference calls and webcasts.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words “estimate,” “anticipate,” “assume,” “expect,” “believe,” “intend,” “continue,” “should,” “may,” “likely,” “plan,” “seek,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business, strategy, plans, and the intentions of management; joint ventures, partnerships, and portfolio including management thereof; our platform; growth and capital strategies including our private capital business, investment pipeline and intentions to acquire or dispose of properties (including geographies, timing, partners, clients and terms); re-leases, re-development and speculative development of properties and expenditures related thereto; operations and results; guidance; our share repurchase program; settlement of shares of common stock sold pursuant to forward sale confirmations under our ATM program; dividends, including the amount, timing and payments of dividends; and macroeconomic and other business trends, including interest rates and trends in the market for real estate or long-term leases of freestanding, single-client properties. Forward-looking statements are subject to risks, uncertainties, and assumptions about us which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms, structure and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in real estate, private capital, credit and mezzanine investments, and joint ventures or co-investment ventures, including solvency, defaults under leases, bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the threat and outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co- investment ventures, funds, joint ventures, partnerships and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Past operating results and performance are provided for informational purposes and are not a guarantee of future results. There can be no - 7 - assurance that historical trends will continue. Actual plans and results may differ materially from what is expressed or forecasted in this press release and forecasts made in the forward-looking statements discussed in this press release may not materialize. We do not undertake any obligation to update forward- looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events. Investor Relations: Alex Waters
(1) Includes client reimbursements of $104.9 million and $82.5 million for the three months ended September 30, 2026 and 2025, respectively, and $293.6 million and $257.3 million for the nine months ended September 30, 2026 and 2025, respectively. Additionally, includes reserves to rental revenue, exclusive of non-cash reserves, of $2.5 million and $4.0 million for the three months ended September 30, 2026 and 2025, respectively, and $13.5 million and $21.1 million for the nine months ended September 30, 2026 and 2025, respectively. - 9 -
FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FUNDS FROM OPERATIONS (Normalized FFO)
(in thousands, except per share amounts) (unaudited) FFO and Normalized FFO are non-GAAP financial measures. Please see the Glossary for our definitions and explanations of how we utilize these metrics.
(in thousands, except per share amounts) (unaudited) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize this metric. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported AFFO.
Three months ended September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net income $ 432,140 Interest 333,564 Income taxes 23,568 Depreciation and amortization 647,555 Executive severance charge 1,473 Provisions for impairment of real 111,645 estate Provisions for credit losses on loans 14,212 and financing receivables Merger, transaction, and other costs, 2,694 net Gain on sales of real estate -113,865 Foreign currency and derivative loss, 2,513 net Equity in earnings of unconsolidated -2,927 entities Adjusted EBITDAre(1) $ 1,452,572 Annualized Adjusted EBITDAre(1) $ 5,810,288 Annualized Pro Forma Adjustments $ 32,601 Annualized Pro Forma Adjusted $ 5,842,889 EBITDAre(1) Total debt per the consolidated balance sheet, excluding deferred financing $ 31,738,055 costs and net discounts Less: Cash and cash equivalents -368,534 Net Debt $ 31,369,521 Less: Expected proceeds from unsettled -1,090,080 forward equity(2) Net Debt - Inclusive of Unsettled ATM $ 30,279,441 Forward Equity Net Debt/Annualized Pro Forma Adjusted 5.4 x EBITDAre(1) Net Debt/Annualized Pro Forma Adjusted EBITDAre- Inclusive of Unsettled ATM 5.2 x Forward Equity(1)
(1) Adjusted EBITDA re , Annualized Adjusted EBITDA re , Annualized Pro Forma Adjusted EBITDA re , Net Debt/Annualized Pro Forma Adjusted EBITDA re, and Net Debt/Annualized Pro Forma Adjusted EBITDA re - Inclusive of Unsettled ATM Forward Equity are non-GAAP financial measures. Please see the Glossary for our definitions of these terms and an explanation of how we utilize these metrics.
(2) As of September 30, 2026, we had outstanding forward sale agreements under our ATM program for a total of 18.5 million shares of common stock, which have been executed at a weighted average forward price of $58.97 per share (assuming full physical settlement of all outstanding shares of common stock, subject to such forward sale agreements and certain assumptions made with respect to settlement dates).
The Annualized Pro Forma Adjustments, which include transaction accounting adjustments in accordance with U.S. GAAP, consist of adjustments to incorporate Adjusted EBITDA re from investments we acquired or stabilized during the applicable quarter and Adjusted EBITDA re from investments we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable quarter. Our calculation includes all adjustments consistent with the requirements to present Adjusted EBITDA re on a pro forma basis in accordance with Article 11 of Regulation S-X. The following table summarizes our Annualized Pro Forma Adjustments related to our Annualized Pro Forma Adjusted EBITDA re calculation for the period indicated below (in thousands):
Three months ended September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Annualized pro forma adjustments from investments $ 80,896 acquired or stabilized Annualized pro forma adjustments from investments -48,295 disposed Annualized Pro Forma Adjustments $ 32,601
(in thousands) (unaudited) Adjusted Free Cash Flow and Annualized Adjusted Free Cash Flow are non-GAAP financial measures. Please see the Glossary for our definitions and an explanation of how we utilize these metrics.
(1) Excludes capital expenditures which directly generate incremental rental revenue on our leases. Reconciliation of Same Store Rental Revenue to Rental Revenue (Including Reimbursements)
(in thousands) (unaudited) Same Store Rental Revenue is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize this metric.
(1) For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of September 30, 2026.
(2) Please see the Glossary for our definitions of Same Store Pool and Same Store Rental Revenue.
(3) "Other excluded revenue" primarily consists of reimbursements related to lease termination fees and other settlement income.
(4) Represents our Pro-Rata Share of rental revenue from properties owned by unconsolidated joint ventures.
(5) Represents the portion of rental revenue attributable to noncontrolling interests based on their pro-rata ownership. - 14 -
Land $ 19,119,185 $ 18,368,029 Buildings and improvements 46,719,476 43,824,410 Total real estate held for investment, 65,838,661 62,192,439 at cost Less accumulated depreciation and -9,808,131 -8,778,536 amortization Real estate held for 56,030,530 53,413,903 investment, net Real estate and lease intangibles held 194,986 91,784 for sale, net Cash and cash equivalents 368,534 434,842 Accounts receivable, net 1,217,817 1,053,487 Lease intangible assets, 5,584,800 5,717,241 net Goodwill 4,932,199 4,932,199 Investment in loans and financing 5,030,205 3,271,002 receivables, net Investment in 1,617,384 1,256,456 unconsolidated entities Other assets, net 2,973,959 2,624,698 Total assets $ 77,950,414 $ 72,795,612 LIABILITIES AND EQUITY Distributions payable $ 265,518 $ 255,171 Accounts payable and 1,094,942 1,060,969 accrued expenses Lease intangible 1,463,929 1,493,958 liabilities, net Other liabilities 1,062,753 1,066,809 Revolving credit facilities and 2,127,928 2,023,414 commercial paper Term loans, net 2,772,340 1,701,615 Mortgages payable, net 36,745 37,761 Notes payable, net 26,451,863 25,031,947 Total liabilities $ 35,276,018 $ 32,671,644 Redeemable noncontrolling $ 71,745 $ — interests Stockholders’ equity: Common stock and paid in capital, par value $0.01 per share, 1,300,000 shares authorized,950,964 and 933,975 shares $ 51,149,067 $ 49,861,660 issued and outstanding as of September 30, 2026 and December 31, 2025, respectively Distributions in excess of -11,761,979 -10,527,984 net income Accumulated other 104,861 105,019 comprehensive income Total stockholders’ equity $ 39,491,949 $ 39,438,695 Noncontrolling interests 3,110,702 685,273 Total equity $ 42,602,651 $ 40,123,968 Total liabilities and $ 77,950,414 $ 72,795,612 equity
The National Association of Real Estate Investment Trusts ("Nareit") established an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDA re ) it believed would provide investors with a consistent measure to help make investment decisions among certain REITs. Our definition of “Adjusted EBITDA re ” is generally consistent with the Nareit definition, other than our adjustment to remove foreign currency and derivative gain and loss and merger, transaction, and other costs, net. We define Adjusted EBITDA re , a non-GAAP financial measure, for the most recent quarter as earnings (net income) before (i) interest expense, (ii) income taxes, (iii) depreciation and amortization, (iv) executive severance charge, (v) provisions for impairment of real estate, (vi) provisions for credit losses on loans and financing receivables, (vii) merger, transaction, and other costs, net, (viii) gain on sales of real estate, (ix) foreign currency and derivative gain and loss, net, and (x) equity in earnings of unconsolidated entities . Our Adjusted EBITDA re may not be comparable to Adjusted EBITDA re reported by other companies or as defined by Nareit, and other companies may interpret or define Adjusted EBITDA re differently than we do. Management believes Adjusted EBITDA re to be a meaningful measure of a REIT’s performance because it provides a view of our operating performance, analyzes our ability to meet interest payment obligations before the effects of income tax, depreciation and amortization expense, provisions for impairment, provisions for credit losses on loans and financing receivables, gain on sales of real estate and other items, as defined above, that affect comparability, including the removal of non-recurring and non-cash items that industry observers believe are less relevant to evaluating the operating performance of a company. In addition, EBITDA re is widely followed by industry analysts, lenders, investors, rating agencies, and others as a means of evaluating the operating performance of business activities prior to servicing debt obligations. Adjusted EBITDA re should be considered along with, but not as an alternative to, net income as a measure of our operating performance.
, a non-GAAP financial measure, is defined as net cash provided by operating activities, less certain capital expenditures and distributions paid to common stockholders and noncontrolling interests, plus merger, transaction, and other costs, net, and adjusted for changes in net working capital. We believe adjusted free cash flow to be a useful liquidity measure for us and our investors by helping to evaluate our ability to generate cash beyond what is needed to fund capital expenditures, debt service and other obligations. Notwithstanding cash on hand and incremental borrowing capacity, adjusted free cash flow reflects our ability to grow our business through investments and acquisitions, as well as our ability to return cash to shareholders through dividends. Adjusted free cash flow is not considered under generally accepted accounting principles to be a primary measure of an entity’s residual cash flow available for discretionary spending, and accordingly should not be considered an alternative to operating income, net income, or amounts shown in our consolidated statements of cash flows.
, a non-GAAP financial measure, is defined as FFO adjusted for unique revenue and expense items, which we believe are not as pertinent to the measurement of our ongoing operating performance. Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution). We believe AFFO provides useful information to investors because it is a widely accepted industry measure of the operating performance of real estate companies used by the investment community. In particular, AFFO provides an additional measure to compare the operating performance of different REITs without having to account for differing depreciation assumptions and other unique revenue and expense items which are not pertinent to measuring a particular company’s ongoing operating performance. Therefore, we believe that AFFO is an appropriate supplemental performance metric, and that the most appropriate GAAP performance metric to which AFFO should be reconciled is net income available to common stockholders.
, a non-GAAP financial measure, is calculated by multiplying Adjusted EBITDA re for the applicable quarter by four. Management believes the use of an Annualized Adjusted EBITDA re metric is meaningful because it represents our run rate operating performance for the period presented.
, a non-GAAP financial measure, is calculated by annualizing Adjusted Free Cash Flow.
represents our Pro-Rata Share of contractual monthly base rent for all leases in place and exchange rates as of the balance sheet date, multiplied by 12, and excludes percentage rent and income on loans and preferred equity investments. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. Total annualized base rent has not been reduced to reflect reserves recorded as reductions to GAAP rental revenue in the periods presented. We believe total annualized base rent is a useful supplemental operating measure, as it excludes properties that were no longer owned at the balance sheet date and includes the annualized rent from properties acquired during the quarter.
, a non-GAAP financial measure, is defined as Annualized Adjusted EBITDA re , which includes transaction accounting adjustments in accordance with U.S. GAAP, adjusted to incorporate Adjusted EBITDA re from investments we acquired or stabilized during the applicable quarter and Adjusted EBITDA re from investments we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable quarter. Our calculation includes all adjustments consistent with the requirements to present Annualized Adjusted EBITDA re on a pro forma basis in accordance with Article 11 of Regulation S-X. The ratio of our net debt to our Annualized Pro Forma Adjusted EBITDA re is also used to determine the vesting of performance share awards granted to our executive officers.
represents expected rent for real estate acquisitions as well as rent to be received upon completion of the properties under development. For unconsolidated entities and consolidated entities with noncontrolling interests, this represents our Pro-Rata Share of the cash income. For loans receivable and preferred equity investments, this represents earned interest income and preferred dividend income, respectively.
, a non-GAAP financial measure, consistent with the Nareit definition, is net income available to common stockholders, plus depreciation and amortization of real estate assets, plus provisions for impairments of depreciable real estate assets, and reduced by gain on property sales. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered measures of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments. We consider FFO to be an appropriate supplemental measure of a REIT’s operating performance as it is based on a net income analysis of property portfolio performance that adds back items such as depreciation and impairments for FFO. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT using historical accounting for depreciation could be less informative. The use of FFO is recommended by the REIT industry as a supplemental performance measure. In addition, FFO is used as a measure of our compliance with the financial covenants of our credit facility.
for acquisitions and properties under development is computed as Cash Income for the first twelve months following the acquisition date, divided by the total cost of the property (including all expenses borne by us), and includes our Pro- Rata Share of Cash Income from unconsolidated joint ventures and consolidated entities with noncontrolling interests. Initial weighted average cash yield for loans receivable and preferred equity investments is computed using the Cash Income for the first twelve months following the acquisition date, divided by the total cost of the investment. - 16 -
are our clients, our clients that are subsidiaries or affiliates of companies, and credit investments secured with a real estate property leased to a tenant that, as of the balance sheet date, have a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch).
, a ratio used by management as a measure of leverage, is calculated as net debt (which we define as total debt, excluding deferred financing costs and net discounts, less cash and cash equivalents), divided by Annualized Pro Forma Adjusted EBITDA re.
a ratio used by management as a measure of leverage, is calculated as net debt inclusive of unsettled ATM forward equity (which we define as total debt, excluding deferred financing costs and net discounts, less cash and cash equivalents, less expected proceeds from unsettled ATM forward equity as of the balance sheet date), divided by Annualized Pro Forma Adjusted EBITDA re .
Normalized Funds from Operations Available to Common Stockholders (Normalized FFO) , a non-GAAP financial measure, is FFO excluding merger, transaction, and other costs, net.
represents our proportionate economic ownership of our joint ventures, which is derived by applying our economic ownership percentage of each such joint venture to calculate our proportionate share of the relevant line item information being presented, and aggregating that information for all such joint ventures. For balance sheet information and other capital-based metrics, we apply our economic ownership percentage as of the end of the applicable period being presented, and for activity- and earnings-based metrics, we apply our weighted average economic ownership percentage for the applicable period being presented, unless otherwise specified.
We believe this form of presentation offers insights into the financial performance and condition of our company as a whole, given the significance of our joint ventures that are accounted for either under the equity method or consolidated with the third parties' share included in noncontrolling interest, although the presentation of such information may not accurately depict the legal and economic implications of holding a noncontrolling interest in the joint venture. We do not control the unconsolidated joint ventures in which we are invested for purposes of GAAP and do not represent legal claim to such items.
The operating agreements of the joint ventures may contain provisions that would cause us to receive a different economic percentage of distributions from the joint venture under certain circumstances, such as the amount of capital contributed by each investor and whether any contributions are entitled to priority distributions. Similarly, upon a liquidation of any such joint venture, subject to the applicable terms of the operating agreement of such joint venture, we generally would be entitled to the applicable percentage of residual cash or other assets that remain only after repayment of all liabilities, priority distributions, and initial equity contributions. In addition, the economic interests in any joint venture may be different than our other legal interests or rights in such joint venture.
We provide pro-rata financial information because we believe it assists investors and analysts in estimating our economic interest in our joint ventures when read in conjunction with our reported results under GAAP. Other companies may calculate their proportionate interest differently than we do, limiting the usefulness as a comparative measure. Due to these limitations, the non-GAAP pro- rata financial information should not be considered in isolation or as a substitute for our consolidated financial statements as reported under GAAP.
is calculated by comparing our Pro-Rata Share of new cash rents to our Pro-Rata Share of prior cash rents for renewals to the same client and leases to new clients with at least 12 months of new term. New cash rents represent the first month of contractual monthly base rent of the new lease or renewal, multiplied by 12. If there is a rent abatement, we annualize the first monthly contractual base rent following the free rent period. Prior cash rents represent the last month of contractual monthly base rent for the most recent expiring lease, multiplied by 12.
, for purposes of determining the properties used to calculate our same store rental revenue, includes all properties that we owned for the entire year-to- date period, for both the current and prior year except for properties during the current or prior year that were: (i) vacant at any time, (ii) under development or redevelopment, or (iii) involved in eminent domain and rent was reduced.
excludes straight-line rent, the amortization of above and below-market leases, and reimbursements from clients for recoverable real estate taxes and operating expenses. For purposes of comparability, same store rental revenue is presented on a constant currency basis by applying the exchange rate as of the balance sheet date to base currency rental revenue. We present same store rental revenue on a pro-rata basis to account for our share of same store rental revenue related to unconsolidated and consolidated joint ventures. For purposes of comparability, we calculate our Pro-Rata Share using our ownership percentage as of September 30, 2026 to same store rental revenue for the three and nine months ended September 30, 2026 and 2025. - 17 -
Full text with the tables
Exhibit 99.1
REALTY INCOME ANNOUNCES OPERATING RESULTS FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026
SAN DIEGO, CALIFORNIA, November 2, 2026...Realty Income Corporation (Realty
Income, NYSE: O), The Monthly Dividend Company ® , today announced operating
results for the three and nine months ended September 30, 2026. All per share
amounts presented in this press release are on a diluted per common share basis
unless stated otherwise.
COMPANY HIGHLIGHTS
:
For the three months ended September 30, 2026:
• Net income available to common stockholders was $403.9 million, or $0.43 per
share
• Adjusted Funds from Operations ("AFFO") increased 3.7% to $1.12 per share,
compared to the three months ended September 30, 2025
• Invested $2.6 billion; our Pro-Rata Share was $2.2 billion at an Initial
Weighted Average Cash Yield of 6.8%
• Net Debt to Annualized Pro Forma Adjusted EBITDA re was 5.4x
• Achieved a Rent Recapture Rate of 103.5% on properties re-leased
• Expanded our private capital platform into Europe through a strategic joint
venture with KKR, supported by an initial €528.0 million investment
• Issued $1.0 billion aggregate principal amount of 3.750% convertible senior
notes due August 2031
CEO Comments
“We delivered another quarter of strong operating performance, reflecting the
resilience of Realty Income’s business model, the quality of our portfolio, and
the consistent execution of our team,” said Sumit Roy, President and Chief
Executive Officer of Realty Income. “As a result, we are raising our 2026 AFFO
per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment
volume target, which is supported by a well-funded balance sheet.”
“We have deliberately expanded our sources of capital and global investment
capabilities, positioning us to prudently allocate capital. This quarter, we
funded investments at a realized leverage-neutral spread of approximately 170
basis points and have fully prefunded our equity needs for the remainder of the
year. As economic and cost of capital volatility persists, we remain focused on
capital allocation while staying true to our ethos of delivering reliable,
income-oriented returns for our investors.”
Select Financial Results
The following summarizes our select financial results (dollars in millions,
except per share data):
Three Nine
mont… months
ended ended
Sept… Septe…
30, 30,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Tot… $ 1,62… $ 1,47… $ 4,71… $ 4,261…
rev…
Net
inc…
ava… $ 403.9 $ 315.8 $ 1,05… $ 762.5
to
com…
sto…
Net
inc… $ 0.43 $ 0.35 $ 1.13 $ 0.84
per
sha…
Fun…
from
ope…
ava… $ 1,04… $ 981.1 $ 3,03… $ 2,874…
to
com…
sto…
(FF…
FFO
per $ 1.10 $ 1.07 $ 3.23 $ 3.18
sha…
Nor… $ 1,04… $ 994.4 $ 3,04… $ 2,888…
FFO…
Nor…
FFO $ 1.10 $ 1.09 $ 3.25 $ 3.19
per
sha…
AFF… $ 1,06… $ 992.0 $ 3,14… $ 2,889…
AFFO
per $ 1.12 $ 1.08 $ 3.35 $ 3.19
sha…
(1) The calculation to determine net income available to common stockholders
includes provisions for impairment of real estate, provisions for credit losses
on loans and financing receivables, gain on sales of real estate, and foreign
currency gain and loss. These items can vary from quarter to quarter and can
significantly impact net income available to common stockholders and period-to-
period comparisons.
(2) FFO, Normalized FFO, and AFFO are non-GAAP financial measures. Normalized
FFO is based on FFO and adjusted to exclude merger, transaction, and other
costs, net and AFFO further adjusts Normalized FFO for unique revenue and
expense items. Please see the Glossary for our definitions and explanations of
how we utilize these metrics. Please see pages 10 and 11 herein for
reconciliations to the most directly comparable GAAP measure.
Dividend Increase
In September 2026, we announced the 116 th consecutive quarterly dividend
increase, which is the 136 th increase since our listing on the New York Stock
Exchange ("NYSE") in 1994. The annualized dividend amount as of September 30,
2026 was $3.258 per share. The amount of monthly dividends paid per share
increased 0.7% to $0.813 in the three months ended September 30, 2026 , as
compared to $0.807 during the three months ended September 30, 2025 ,
representing 72.6% of our diluted AFFO per share of $1.12 during the three
months ended September 30, 2026.
- 2 -
Real Estate Portfolio Update
As of September 30, 2026, we owned or held interests in 15,536 properties, which
were leased to 1,842 clients doing business in 96 industries. Our diversified
portfolio of commercial properties under long-term, net lease agreements is
actively managed with a weighted average remaining lease term of approximately
8.5 years. Our portfolio of commercial real estate has historically provided
dependable rental revenue supporting the payment of monthly dividends. As of
September 30, 2026, portfolio occupancy was 98.8% with 182 properties available
for lease or sale, as compared to 98.8% as of June 30, 2026 and 98.7% as of
September 30, 2025. Our property-level occupancy rates exclude properties with
ancillary leases only, such as cell towers and billboards, and properties with
possession pending, and include properties owned by unconsolidated joint
ventures. The following summarizes our portfolio activity for the periods
indicated below:
Changes in Occupancy
Three months ended September 30, 2026
Properties available for lease as of June 30, 2026 188
─────────────────────────────────────────────────────────────
Lease expirations(1) 274
Re-leases to same client -213
Re-leases to new client -9
Vacant dispositions -58
Properties available for lease as of September 30, 182
2026
Nine months ended September 30, 2026
Properties available for lease as of December 31, 173
2025
Lease expirations(1) 1,074
Re-leases to same client -818
Re-leases to new client -66
Vacant dispositions -181
Properties available for lease as of September 30, 182
2026
(1) Includes scheduled and unscheduled expirations (including leases rejected in
bankruptcy), as well as future expirations resolved in the periods indicated
above.
During the three months ended September 30, 2026, the new Annualized Base Rent
on re-leased units was $67.6 million, as compared to the previous annual rent of
$65.3 million on the same units, representing a Rent Recapture Rate of 103.5% on
the re-leased units.
During the nine months ended September 30, 2026, the new Annualized Base Rent on
re-leased units was $251.1 million, as compared to the previous annual rent of
$243.5 million on the same units, representing a Rent Recapture Rate of 103.1%
on the re-leased units. Please see the Glossary for our definitions of
Annualized Base Rent and Rent Recapture Rate.
- 3 -
Investment Summary
The following table summarizes our investments for the periods indicated below
(dollars in millions):
… N…
… m…
… e…
… S…
… 3…
… 2…
──────────────────────────────────────────────────────────────────────────────
… … … …
… … … … … … … …
… … … … … …
… …
$ … $ … 9… 83 $ 2… $ 2… 1… 2…
… … 8… 18 1… 3… 1… 76
… … 8… 17 1… 1… 7… 64
… … 1… 1 5… 4… 1… 7
$ … $ … 9… 1… $ 5… $ 4… 9… 3…
… % 6… %
$ … $ … 1… 27 $ 1… $ 1… 1… 31
… … 1… 20 1… 1… 1… 20
… … 8… 16 2… 2… 8… 16
$ … $ … 1… 63 $ 4… $ 4… 1… 67
… % 7… %
$ … $ … 5… — $ 1… $ 1… 3… —
… … 6… — 2… 4… 6… —
… … 2… — 4… 4… 3… —
… … 1… — 1… 1… 1… —
$ … $ … 3… — $ 1… $ 1… 3… —
… % 8… %
$ … $ … 8… 1… $ 7… $ 6… 7… 4…
… % 7… %
Three months Nine months
ended ended
Supplementary September 30, September 30,
Information(1… 2026 2026
──────────────────────────────────────────────────────────────────────────────
Total U.S.
and other $ 1,290.2 $ 4,301.6
volume
Initial
Weighted
Average Cash 6.5 % 7.1 %
Yield(4)-
U.S. and
other
Total Europe $ 940.1 $ 2,623.0
volume
Initial
Weighted
Average Cash 7.1 % 7.0 %
Yield(4)-
Europe
Investment
Grade 53 % 44 %
Clients(6)
Initial
Weighted
Average Cash 6.1 % 5.9 %
Yield(4)-
U.S. Core
Plus Fund
Initial
Weighted
Average Cash 6.6 % 7.2 %
Yield(4)-
U.S.
wholly-owned
(1) Reflects adjustments for our Pro-Rata Share based on our proportionate
economic ownership of our joint ventures (which adds our economic ownership
percentage of unconsolidated entities and deducts noncontrolling interests).
Please see the Glossary for our definition of Pro-Rata Share.
(2) Non-wholly owned represents U.S. and European investments not 100% owned by
Realty Income, excluding the U.S. Core Plus Fund.
(3) For the three months ended September 30, 2026, the new properties are 31.0%
retail, 57.3% industrial, and 11.7% data center property types based on Cash
Income. For the nine months ended September 30, 2026, the new properties are
42.6% retail, 51.6% industrial, and 5.8% data center property types based on
Cash Income. Starting in the third quarter of 2026, data centers are reported as
a separate property type; year-to-date investment activity has been recast to
conform to current presentation. Please see the Glossary for our definition of
Cash Income.
(4) Initial Weighted Average Cash Yield is a supplemental operating measure.
Cash Income used in the calculation of Initial Weighted Average Cash Yield for
investments for the three and nine months ended September 30, 2026 includes $0.3
million and $4.1 million, respectively, received as settlement credits as the
reimbursement of free rent periods. Please see the Glossary for our definitions
of these metrics.
(5) Represents various loan investments across the U.S., Europe, and Mexico, as
well as a preferred equity investment held by the U.S. Core Plus Fund.
(6) Represents approximate percentage of annualized cash income generated by
investments from Investment Grade Clients at the date of investment. Please see
the Glossaryfor our definition of Investment Grade Clients.
- 4 -
Same Store Rental Revenue
The following summarizes our Same Store Rental Revenue for 14,443 properties
under lease for the three and nine months ended September 30, 2026 and 2025
(dollars in millions):
Th… N…
mo… m…
en… e…
Se… S… Th… % Ni…
20… 30, 20… 20… 3… 20… Mo… I… Mo…
──────────────────────────────────────────────────────────────────────────────
S…
S… $ 1,… $ 1,… $ 3… $ 3… 1… % 1… %
R…
R…
For purposes of comparability, Same Store Rental Revenue is presented on a
constant currency basis using the applicable exchange rate as of September 30,
2026. Same Store Rental Revenue also includes our Pro-Rata Share of rental
revenue from properties owned by unconsolidated joint ventures and amounts
attributable to noncontrolling interests based on their respective ownership
percentages. Please see the Glossary for our definitions of Same Store Pool and
Same Store Rental Revenue.
Property Dispositions
The following summarizes our property dispositions (dollars in millions):
Three months ended Nine months ended
September 30, 2026 September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Properties sold 182 359
Net sales proceeds $ 526.6 $ 875.2
Gain on sales of real $ 113.9 $ 187.8
estate
Liquidity and Capital Markets
Liquidity
As of September 30, 2026, we had $5.4 billion total available liquidity at our
Pro-Rata Share (1) , comprised of the components summarized below (dollars in
millions):
Cash and cash equivalents(2) $ 355.8
Availability under credit facilities(3) 5,485.1
Unsettled At-the-Market ("ATM") 1,090.1
forwards(4)
Less: commercial paper borrowings -1,540.7
Total available liquidity at our $ 5,390.3
Pro-Rata Share
(1) Please see the Glossary for our definition of Pro-Rata Share for more
information.
(2) Reflects adjustments based on our proportionate economic ownership of our
joint ventures. Calculated as cash and cash equivalents per the consolidated
balance sheet of $368.5 million, plus our Pro-Rata Share of unconsolidated
entities cash of $25.5 million, less adjustments allocable to noncontrolling
interests of $38.2 million.
(3) Represents our availability under the $5.5 billion revolving credit facility
and our Pro-Rata Share of availability under the $1.38 billion Fund credit
facility, which includes a $1.0 billion revolving facility, and a $380.0 million
term loan which was fully drawn as of September 30, 2026.
(4) As of September 30, 2026, we had outstanding forward sale agreements under
our ATM program for a total of 18.5 million shares of common stock, which have
been executed at a weighted average forward price of $58.97 per share (assuming
full physical settlement of all outstanding shares of common stock, subject to
such forward sale agreements and certain assumptions made with respect to
settlement dates).
Capital Raising
During the three months ended September 30, 2026, we raised $472.5 million of
proceeds from the sale of common stock at a weighted average price of $60.49 per
share, primarily through the settlement of 7.8 million shares of common stock
pursuant to forward sale agreements under our ATM program. As of November 2,
2026, approximately 18.5 million shares of common stock subject to ATM forward
sale agreements remain unsettled, representing approximately $1.1 billion in
expected net proceeds and a weighted average initial gross price of $60.61 per
share. ATM net sale proceeds assume full physical settlement of all outstanding
shares of common stock, subject to such forward sale agreements and certain
assumptions made with respect to settlement dates.
In September 2026, we expanded our private capital platform into Europe through
a strategic partnership with KKR. KKR invested €528.0 million for a 49% equity
interest in a newly formed, euro-denominated joint venture comprising 54
stabilized net lease properties across four European countries.
- 5 -
In August 2026, we issued $1.0 billion principal amount of 3.750% convertible
senior notes due August 2031 in a private offering, resulting in net proceeds of
$983.2 million. We used approximately $33.2 million of the net proceeds to enter
into capped call transactions with a cap price of $83.55 per share of common
stock, which represented a premium of 35.0% above the closing price of our
common stock of $61.89 per share on the NYSE on August 11, 2026. We also used
approximately $188.7 million of the net proceeds to repurchase approximately 3.0
million shares of our common stock concurrently with the pricing of the
offering.
In July 2026, we closed on the recast and expansion of our $5.5 billion
multicurrency unsecured revolving credit facilities, upsized from the prior $4.0
billion capacity. In addition, we also expanded our global commercial paper
programs to a total combined capacity of $5.5 billion, upsized from the prior
$3.0 billion combined capacity.
In July 2026, we issued €600.0 million of 3.625% senior unsecured notes due July
2032 (the “2032 Notes”). The public offering price for the 2032 Notes was
99.518% of the principal amount for an effective annual yield to maturity of
3.716%.
Guidance
Summarized below are approximate estimates of the key components of our 2026
earnings guidance (with year-to-date 2026 actual results for comparison):
Revised 2026 Prior 2026 YTD Actuals at
Guidance Guidance(1) September 30,
2026
Net income per $1.55 - $1.56 $1.59 - $1.60 $1.13
share(2)
AFFO per share $4.45 - $4.46 $4.44 - $4.45 $3.35
Same store rent 1.1% - 1.3% 1.1% - 1.3% 1.1%
growth
Occupancy Above 98.5% Approx 98.5% 98.8%
Cash G&A
expenses (% of
total Gross 21 - 22 bps 21 - 22 bps 16 bps
Asset
Value)(3)(4)
Property
expenses
(non-reimbursa… 1.3% - 1.5% Approx 1.5% 1.3%
(%
of total
revenue)(5)
Income tax $100 - $110 $100 - $110 $76 million
expenses million million
Investment
volume (at $10.0 billion $10.0 billion $7.9 billion
100%)
Lease $45 - $50 $45 - $50
termination million million $45 million
income
(1)As issued on
August 5, 2026.
(2)Net income
per share
excludes future
impairment and
foreign
currency or
derivative
gains or losses
due to the
inherent
unpredictabili…
of forecasting
these items.
(3)Cash G&A
represents
'General and
administrative'
expenses as
presented in
our
consolidated
statements of
income,
less
share-based
compensation
costs.
(4)Please see
the Glossary
for our
definition of
Gross Asset
Value.
(5)Total
revenue
excludes client
reimbursements.
Summarized below is a reconciliation of estimated net income per share to
estimated AFFO per share for the full year guidance:
2026 Per Share YTD Actuals at
Guidance September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net income per share $1.55 - $1.56 $1.13
Real estate depreciation $2.73 $2.04
Provisions for impairment of real
estate, gain on sales of real $0.14 $0.14
estate,
and non-cash credit losses(1)
Straight-line rent and amortization
of $(0.11) $(0.09)
above and below-market leases, net
Amortization of deferred financing $0.08 $0.06
costs
Amortization of share-based $0.04 $0.03
compensation
Merger, transaction, and other
costs, $0.02 $0.02
net
Other adjustments $0.00 $0.02
AFFO per share $4.45 - $4.46 $3.35
(1)Amounts represent year-to-date
actual
results. The company does not
forecast
impairment, gain on sales of real
estate, and non-cash credit losses.
- 6 -
Conference Call Information
In conjunction with the release of our operating results, we will host a
conference call on November 2, 2026 at 2:00 p.m. PST to discuss the operating
results. To access the conference call, dial (833) 816-1264 (United States) or
(412) 317-5632 (International). When prompted, please ask for the Realty Income
conference call.
A telephone replay of the conference call can also be accessed by calling (855)
669-9658 (United States) or (412) 317-0088 (International) and entering the
conference ID 2991704. The telephone replay will be available through November
9, 2026.
A live webcast will be available in listen-only mode by clicking on the webcast
link on the company’s home page at www.realtyincome.com. A replay of the
conference call webcast will be available approximately one hour after the
conclusion of the live broadcast. No access code is required for this replay.
Supplemental Materials
Supplemental Operating and Financial Data for the three and nine months ended
September 30, 2026 is available on our corporate website at
www.realtyincome.com/investors/quarterly-and-annual-results.
About Realty Income
Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the
world's leading companies ® . Founded in 1969, we serve our clients as a full-
service real estate capital provider. As of September 30, 2026, we have a
portfolio of over 15,500 properties in all 50 U.S. states, the United Kingdom
("U.K."), and eight other countries in Europe. We are known as “The Monthly
Dividend Company ® ” and have a mission to invest in people and places to
deliver dependable monthly dividends that increase over time. Since our
founding, we have declared 676 consecutive monthly dividends and are a member of
the S&P 500 Dividend Aristocrats ® index for having increased our dividend for
over 32 consecutive years. Additional information about the company can be found
at www.realtyincome.com. Investors and others should note that we announce
material financial and operational information to our investors using our
investor relations website (www.realtyincome.com/investors), press releases, SEC
filings and public conference calls and webcasts.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. When used in this press release, the words “estimate,” “anticipate,”
“assume,” “expect,” “believe,” “intend,” “continue,” “should,” “may,” “likely,”
“plan,” “seek,” and similar expressions are intended to identify forward-looking
statements. Forward-looking statements include discussions of our business,
strategy, plans, and the intentions of management; joint ventures, partnerships,
and portfolio including management thereof; our platform; growth and capital
strategies including our private capital business, investment pipeline and
intentions to acquire or dispose of properties (including geographies, timing,
partners, clients and terms); re-leases, re-development and speculative
development of properties and expenditures related thereto; operations and
results; guidance; our share repurchase program; settlement of shares of common
stock sold pursuant to forward sale confirmations under our ATM program;
dividends, including the amount, timing and payments of dividends; and
macroeconomic and other business trends, including interest rates and trends in
the market for real estate or long-term leases of freestanding, single-client
properties. Forward-looking statements are subject to risks, uncertainties, and
assumptions about us which may cause our actual future results to differ
materially from expected results. Some of the factors that could cause actual
results to differ materially are, among others, our continued qualification as a
real estate investment trust; general domestic and foreign business, economic,
or financial conditions; competition; fluctuating interest and currency rates;
inflation and its impact on our clients and us; access to debt and equity
capital markets and other sources of funding (including the terms, structure and
partners of such funding); volatility and uncertainty in the credit and
financial markets; other risks inherent in real estate, private capital, credit
and mezzanine investments, and joint ventures or co-investment ventures,
including solvency, defaults under leases, bankruptcies, potential liability
relating to environmental matters, illiquidity of real estate investments
(including rights of first refusal or rights of first offer), and potential
damages from natural disasters; impairments in the value of our real estate
assets; volatility and changes in domestic and foreign laws and the application,
enforcement or interpretation thereof (including with respect to tax laws and
rates); property ownership through co-investment ventures, funds, joint
ventures, partnerships and other arrangements which, among other things, may
transfer or limit our control of the underlying investments; epidemics or
pandemics; the loss of key personnel; the threat and outcome of any legal
proceedings to which we are a party or which may occur in the future; acts of
terrorism and war; the anticipated benefits from mergers, acquisitions, co-
investment ventures, funds, joint ventures, partnerships and other arrangements;
and those additional risks and factors discussed in our reports filed with the
U.S. Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on forward-looking statements. Forward-looking statements are not
guarantees of future plans and performance and speak only as of the date of this
press release. Past operating results and performance are provided for
informational purposes and are not a guarantee of future results. There can be
no
- 7 -
assurance that historical trends will continue. Actual plans and results may
differ materially from what is expressed or forecasted in this press release and
forecasts made in the forward-looking statements discussed in this press release
may not materialize. We do not undertake any obligation to update forward-
looking statements or publicly release the results of any forward-looking
statements that may be made to reflect events or circumstances after the date
these statements were made or to reflect the occurrence of unanticipated events.
Investor Relations:
Alex Waters
Vice President, Investor Relations
+1 858 284 4965
awaters@realtyincome.com
- 8 -
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts) (unaudited)
Septem… Septe…
30, 30,
REVE… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Rent…
(inc… $ 1,483… $ 1,386,… $ 4,351,… $ 4,037…
reim…
Inte…
inco…
on 32,248 32,635 96,402 97,652
fina…
rece…
Inte…
and
divi…
inco…
on 104,9… 51,058 263,609 125,2…
loans
and
pref…
equi…
inve…
Other 553 357 6,926 762
Total 1,621… 1,470,… 4,718,… 4,261…
reve…
EXPE…
Depr…
and 647,5… 631,981 1,922,… 1,888…
amor…
Inte… 333,5… 294,482 937,587 846,6…
Prop…
(inc… 122,3… 106,621 351,675 320,7…
reim…
Gene…
and 54,315 55,039 170,805 148,4…
admi…
Prov…
for
impa… 111,6… 75,391 255,995 315,0…
of
real
esta…
Prov…
for
cred…
loss…
on 14,212 11,581 60,573 31,861
loans
and
fina…
rece…
Merg…
tran…
and 2,694 13,343 15,539 13,953
other
cost…
net
Total 1,286… 1,188,… 3,714,… 3,565…
expe…
Gain
on
sales 113,8… 49,107 187,767 110,2…
of
real
esta…
Fore…
curr…
and -2,513 -2,818 -28,357 -9,751
deri…
loss,
net
Equi…
in
earn… 2,927 3,080 7,800 10,706
of
unco…
enti…
Other
inco… 6,225 10,015 28,610 24,551
net
Inco…
befo… 455,7… 341,498 1,199,… 831,6…
inco…
taxes
Inco… -23,5… -23,824 -75,571 -63,5…
taxes
Net 432,1… 317,674 1,123,… 768,1…
inco…
Net
inco…
attr… -28,1… -1,903 -63,925 -5,642
to
nonc…
inte…
Net
inco…
avai… $ 403,9… $ 315,771 $ 1,059,… $ 762,5…
to
comm…
stoc…
Funds
from
oper…
avai… $ 1,041… $ 981,050 $ 3,031,… $ 2,874…
to
comm…
stoc…
(FFO)
Norm…
funds
from
oper…
avai… $ 1,043… $ 994,393 $ 3,046,… $ 2,888…
to
comm…
stoc…
(Nor…
FFO)
Adju…
funds
from
oper…
avai… $ 1,061… $ 991,988 $ 3,140,… $ 2,889…
to
comm…
stoc…
(AFF…
Amou…
avai…
to
comm…
stoc…
per
comm…
shar…
Net
inco…
per
comm… $ 0.43 $ 0.35 $ 1.13 $ 0.84
shar…
basic
and
dilu…
FFO
per
comm…
shar…
Basic $ 1.10 $ 1.07 $ 3.24 $ 3.18
Dilu… $ 1.10 $ 1.07 $ 3.23 $ 3.18
Norm…
FFO
per
comm…
shar…
Basic $ 1.11 $ 1.09 $ 3.25 $ 3.20
Dilu… $ 1.10 $ 1.09 $ 3.25 $ 3.19
AFFO
per
comm…
shar…
Basic $ 1.12 $ 1.09 $ 3.35 $ 3.20
Dilu… $ 1.12 $ 1.08 $ 3.35 $ 3.19
Cash
divi…
paid $ 0.8130 $ 0.8070 $ 2.4345 $ 2.4085
per
comm…
share
(1) Includes client reimbursements of $104.9 million and $82.5 million for the
three months ended September 30, 2026 and 2025, respectively, and $293.6 million
and $257.3 million for the nine months ended September 30, 2026 and 2025,
respectively. Additionally, includes reserves to rental revenue, exclusive of
non-cash reserves, of $2.5 million and $4.0 million for the three months ended
September 30, 2026 and 2025, respectively, and $13.5 million and $21.1 million
for the nine months ended September 30, 2026 and 2025, respectively.
- 9 -
FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FUNDS FROM OPERATIONS (Normalized
FFO)
(in thousands, except per share amounts) (unaudited)
FFO and Normalized FFO are non-GAAP financial measures. Please see the Glossary
for our definitions and explanations of how we utilize these metrics.
Three Nine
months months
ended ended
Septemb… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
avail… $ 403,942 $ 315,771 $ 1,059,… $ 762,505
to
common
stock…
Depre…
and 647,555 631,981 1,922,… 1,888,7…
amort…
Depre…
of
furni… -827 -711 -2,416 -1,853
fixtu…
and
equip…
Provi…
for
impai… 111,645 75,391 255,995 315,063
of
real
estate
Gain
on
sales -113,865 -49,107 -187,7… -110,210
of
real
estate
Propo…
share
of
adjus… 13,281 9,003 31,780 24,343
for
uncon…
entit…
FFO
adjus…
alloc… -20,705 -1,278 -48,535 -4,160
to
nonco…
inter…
FFO
avail…
to $ 1,041,0… $ 981,050 $ 3,031,… $ 2,874,4…
common
stock…
FFO
alloc…
to 2,420 2,346 6,797 7,188
dilut…
nonco…
inter…
Dilut… $ 1,043,4… $ 983,396 $ 3,038,… $ 2,881,6…
FFO
FFO
avail…
to $ 1,041,0… $ 981,050 $ 3,031,… $ 2,874,4…
common
stock…
Merge…
trans…
and 2,694 13,343 15,539 13,953
other
costs,
net
Norma…
FFO
avail… $ 1,043,7… $ 994,393 $ 3,046,… $ 2,888,4…
to
common
stock…
Norma…
FFO
alloc…
to 2,420 2,346 6,797 7,188
dilut…
nonco…
inter…
Dilut…
Norma… $ 1,046,1… $ 996,739 $ 3,053,… $ 2,895,5…
FFO
FFO
per
common
share:
Basic $ 1.10 $ 1.07 $ 3.24 $ 3.18
Dilut… $ 1.10 $ 1.07 $ 3.23 $ 3.18
Norma…
FFO
per
common
share:
Basic $ 1.11 $ 1.09 $ 3.25 $ 3.20
Dilut… $ 1.10 $ 1.09 $ 3.25 $ 3.19
Distr…
paid
to $ 768,505 $ 737,859 $ 2,283,… $ 2,177,1…
common
stock…
FFO
after $ 272,521 $ 243,191 $ 747,911 $ 697,320
distr…
Norma…
FFO $ 275,215 $ 256,534 $ 763,450 $ 711,273
after
distr…
Weigh…
avera…
number
of
common
shares
used
for
FFO
and
Norma…
FFO:
Basic 944,261 913,949 936,219 902,935
Dilut… 948,797 917,869 940,928 906,692
- 10 -
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(in thousands, except per share amounts) (unaudited)
AFFO is a non-GAAP financial measure. Please see the Glossary for our definition
and an explanation of how we utilize this metric. Certain prior period amounts
have been reclassified to conform to the current period presentation. These
reclassifications had no impact on previously reported AFFO.
Three Nine
months months
ended ended
Septemb… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
income
avail… $ 403,942 $ 315,771 $ 1,059,… $ 762,505
to
common
stock…
Cumul…
adjus…
to 639,778 678,622 1,987,… 2,125,9…
calcu…
Norma…
FFO(1)
Norma…
FFO
avail… 1,043,7… 994,393 3,046,… 2,888,4…
to
common
stock…
Debt-…
non-c…
items:
Amort…
of net
debt
disco… 21,656 9,001 54,133 23,532
and
defer…
finan…
costs
Amort…
of
acqui…
inter… 1,531 2,251 4,592 9,517
rate
swap
value
Capit…
expen…
from
opera…
prope…
Leasi…
costs -2,392 -1,754 -5,690 -4,619
and
commi…
Recur…
capit… -27 -42 -197 -282
expen…
Other
non-c…
items:
Provi…
for
credit
losses
on 14,212 11,581 60,573 31,861
loans
and
finan…
recei…
Amort…
of 6,461 7,719 27,112 21,728
share…
compe…
Strai…
rent
and -50,732 -43,474 -129,7… -117,512
expen…
net
Amort…
of
above
and 17,742 10,462 48,505 32,075
below…
lease…
net
Defer…
tax — 3,829 1,718 4,138
expen…
Execu…
sever… 1,473 — 3,319 —
charge
Deriv…
and
unrea…
forei… 4,202 -1,941 22,157 -730
curre…
loss
(gain…
net(2)
Other 2,230 475 5,798 2,907
adjus…
Propo…
share
of
adjus… -987 -650 -1,761 -2,291
for
uncon…
entit…
Adjus…
alloc…
to 2,008 138 3,523 465
nonco…
inter…
AFFO
avail…
to $ 1,061,0… $ 991,988 $ 3,140,… $ 2,889,1…
common
stock…
AFFO
alloc…
to 2,394 2,331 7,166 7,133
dilut…
nonco…
inter…
Dilut… $ 1,063,4… $ 994,319 $ 3,147,… $ 2,896,3…
AFFO
AFFO
per
common
share:
Basic $ 1.12 $ 1.09 $ 3.35 $ 3.20
Dilut… $ 1.12 $ 1.08 $ 3.35 $ 3.19
Distr…
paid
to $ 768,505 $ 737,859 $ 2,283,… $ 2,177,1…
common
stock…
AFFO
after $ 292,592 $ 254,129 $ 857,454 $ 712,062
distr…
Weigh…
avera…
number
of
common
shares
used
for
AFFO:
Basic 944,261 913,949 936,219 902,935
Dilut… 948,797 917,869 940,928 906,692
(1) See Normalized FFO calculations on page 10 for reconciling items.
(2) Represents non-cash foreign currency losses (gains) from remeasurement to
USD and mark-to-market adjustments on investments and derivatives that are non-
cash in nature.
(3) Includes primarily obligations related to financing lease liabilities.
- 11 -
HISTORICAL FFO AND AFFO
(in thousands, except per share amounts) (unaudited)
For
the
thr…
mon…
end…
Sep…
30, 2026 2025 2024 2023 2022
──────────────────────────────────────────────────────────────────────────────
Net
inc…
ava… $ 403… $ 315,… $ 261… $ 233,… $ 219…
to
com…
sto…
Dep…
and
amo…
net
of 646… 631,… 601… 494,… 418…
fur…
fix…
and
equ…
Pro…
for
imp… 111… 75,3… 33,… 16,8… 1,6…
of
real
est…
Gain
on
sal… -11… -49,… -50… -7,5… -42…
of
real
est…
Pro…
sha…
of
adj… 13,… 9,003 9,6… — 717
for
unc…
ent…
FFO
adj…
all… -20… -1,2… -762 -1,3… -402
to
non…
int…
FFO
ava…
to $ 1,0… $ 981,… $ 854… $ 736,… $ 597…
com…
sto…
Mer…
tra…
and 2,6… 13,3… 8,6… 2,884 3,7…
oth…
cos…
net
Nor…
FFO
ava… $ 1,0… $ 994,… $ 863… $ 739,… $ 600…
to
com…
sto…
FFO
per $ 1.10 $ 1.07 $ 0.98 $ 1.04 $ 0.97
dil…
sha…
Nor…
FFO
per $ 1.10 $ 1.09 $ 0.99 $ 1.04 $ 0.97
dil…
sha…
AFFO
ava…
to $ 1,0… $ 991,… $ 915… $ 721,… $ 603…
com…
sto…
AFFO
per $ 1.12 $ 1.08 $ 1.05 $ 1.02 $ 0.98
dil…
sha…
Cash
div…
paid $ 0.8… $ 0.80… $ 0.7… $ 0.76… $ 0.7…
per
com…
sha…
Wei…
ave…
dil…
sha…
out…
- 948… 917,… 873… 711,… 619…
FFO,
Nor…
FFO
and
AFFO
For
the
nine
mon… 2026 2025 2024 2023 2022
end…
Sep…
30,
Net
inc…
ava… $ 1,0… $ 762,… $ 648… $ 653,… $ 642…
to
com…
sto…
Dep…
and
amo…
net
of 1,9… 1,88… 1,7… 1,41… 1,2…
fur…
fix…
and
equ…
Pro…
for
imp… 255… 315,… 208… 59,8… 16,…
of
real
est…
Gain
on
sal… -18… -110… -92… -19,… -93…
of
real
est…
Pro…
sha…
of
adj… 31,… 24,3… 20,… -465 12,…
for
unc…
ent…
FFO
adj…
all… -48… -4,1… -2,… -2,8… -1,…
to
non…
int…
FFO
ava…
to $ 3,0… $ 2,87… $ 2,5… $ 2,10… $ 1,8…
com…
sto…
Mer…
tra…
and 15,… 13,9… 105… 4,532 12,…
oth…
cos…
net
Nor…
FFO
ava… $ 3,0… $ 2,88… $ 2,6… $ 2,11… $ 1,8…
to
com…
sto…
FFO
per $ 3.23 $ 3.18 $ 2.99 $ 3.09 $ 2.99
dil…
sha…
Nor…
FFO
per $ 3.25 $ 3.19 $ 3.11 $ 3.10 $ 3.01
dil…
sha…
AFFO
ava…
to $ 3,1… $ 2,88… $ 2,6… $ 2,04… $ 1,7…
com…
sto…
AFFO
per $ 3.35 $ 3.19 $ 3.14 $ 2.99 $ 2.92
dil…
sha…
Cash
div…
paid $ 2.4… $ 2.40… $ 2.3… $ 2.28… $ 2.2…
per
com…
sha…
Wei…
ave…
dil…
sha…
out…
- 940… 906,… 861… 683,… 605…
FFO,
Nor…
FFO
and
AFFO
- 12 -
ADJUSTED EBITDA
re
(dollars in thousands) (unaudited)
Three months ended
September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net income $ 432,140
Interest 333,564
Income taxes 23,568
Depreciation and amortization 647,555
Executive severance charge 1,473
Provisions for impairment of real 111,645
estate
Provisions for credit losses on loans 14,212
and financing receivables
Merger, transaction, and other costs, 2,694
net
Gain on sales of real estate -113,865
Foreign currency and derivative loss, 2,513
net
Equity in earnings of unconsolidated -2,927
entities
Adjusted EBITDAre(1) $ 1,452,572
Annualized Adjusted EBITDAre(1) $ 5,810,288
Annualized Pro Forma Adjustments $ 32,601
Annualized Pro Forma Adjusted $ 5,842,889
EBITDAre(1)
Total debt per the consolidated balance
sheet, excluding deferred financing $ 31,738,055
costs and net discounts
Less: Cash and cash equivalents -368,534
Net Debt $ 31,369,521
Less: Expected proceeds from unsettled -1,090,080
forward equity(2)
Net Debt - Inclusive of Unsettled ATM $ 30,279,441
Forward Equity
Net Debt/Annualized Pro Forma Adjusted 5.4 x
EBITDAre(1)
Net Debt/Annualized Pro Forma Adjusted
EBITDAre- Inclusive of Unsettled ATM 5.2 x
Forward Equity(1)
(1) Adjusted EBITDA re , Annualized Adjusted EBITDA re , Annualized Pro Forma
Adjusted EBITDA re , Net Debt/Annualized Pro Forma Adjusted EBITDA re, and Net
Debt/Annualized Pro Forma Adjusted EBITDA re - Inclusive of Unsettled ATM
Forward Equity are non-GAAP financial measures. Please see the Glossary for our
definitions of these terms and an explanation of how we utilize these metrics.
(2) As of September 30, 2026, we had outstanding forward sale agreements under
our ATM program for a total of 18.5 million shares of common stock, which have
been executed at a weighted average forward price of $58.97 per share (assuming
full physical settlement of all outstanding shares of common stock, subject to
such forward sale agreements and certain assumptions made with respect to
settlement dates).
The Annualized Pro Forma Adjustments, which include transaction accounting
adjustments in accordance with U.S. GAAP, consist of adjustments to incorporate
Adjusted EBITDA re from investments we acquired or stabilized during the
applicable quarter and Adjusted EBITDA re from investments we disposed of during
the applicable quarter, giving pro forma effect to all transactions as if they
occurred at the beginning of the applicable quarter. Our calculation includes
all adjustments consistent with the requirements to present Adjusted EBITDA re
on a pro forma basis in accordance with Article 11 of Regulation S-X. The
following table summarizes our Annualized Pro Forma Adjustments related to our
Annualized Pro Forma Adjusted EBITDA re calculation for the period indicated
below (in thousands):
Three months ended
September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Annualized pro forma adjustments from
investments $ 80,896
acquired or stabilized
Annualized pro forma adjustments from
investments -48,295
disposed
Annualized Pro Forma Adjustments $ 32,601
- 13 -
Adjusted Free Cash Flow
(in thousands) (unaudited)
Adjusted Free Cash Flow and Annualized Adjusted Free Cash Flow are non-GAAP
financial measures. Please see the Glossary for our definitions and an
explanation of how we utilize these metrics.
Nine months ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 2,945,560 $ 2,791,320
activities
Changes in net working 172,226 62,233
capital
Capital expenditures(1) -87,918 -57,716
Distributions paid to
common -2,283,316 -2,177,133
stockholders
Distributions paid to
noncontrolling -53,276 -8,992
interests
Merger, transaction, and
other costs, 15,539 13,953
net
Adjusted Free Cash Flow $ 708,815 $ 623,665
Annualized Adjusted Free $ 945,087 $ 831,553
Cash Flow
(1) Excludes capital expenditures which directly generate incremental rental
revenue on our leases.
Reconciliation of Same Store Rental Revenue to Rental Revenue (Including
Reimbursements)
(in thousands) (unaudited)
Same Store Rental Revenue is a non-GAAP financial measure. Please see the
Glossary for our definition and an explanation of how we utilize this metric.
Three Nine
months months
ended ended
Septem… Septem…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Rental
reven… $ 1,483,… $ 1,386,5… $ 4,351,… $ 4,037,7…
(incl…
reimb…
Const…
curre… -4,156 -4,804 -14,007 5,312
adjus…
Strai…
rent
and -6,293 -7,512 -1,928 -7,747
other
non-c…
adjus…
Contr…
oblig…
reimb… -104,3… -82,392 -285,6… -253,467
by our
clien…
Reven…
from -174,5… -97,905 -444,3… -251,816
exclu…
prope…
Other
exclu… -5,155 -28,806 -47,267 -39,569
reven…
Reven…
from 37,781 28,707 91,900 83,577
uncon…
entit…
Reven…
attri…
to -65,038 -44,745 -174,6… -135,298
nonco…
inter…
Same
Store $ 1,162,… $ 1,149,0… $ 3,475,… $ 3,438,7…
Rental
Reven…
(1) For purposes of comparability, Same Store Rental Revenue is presented on a
constant currency basis using the applicable exchange rate as of September 30,
2026.
(2) Please see the Glossary for our definitions of Same Store Pool and Same
Store Rental Revenue.
(3) "Other excluded revenue" primarily consists of reimbursements related to
lease termination fees and other settlement income.
(4) Represents our Pro-Rata Share of rental revenue from properties owned by
unconsolidated joint ventures.
(5) Represents the portion of rental revenue attributable to noncontrolling
interests based on their pro-rata ownership.
- 14 -
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts) (unaudited)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Real estate held for
investment, at cost:
Land $ 19,119,185 $ 18,368,029
Buildings and improvements 46,719,476 43,824,410
Total real estate held for
investment, 65,838,661 62,192,439
at cost
Less accumulated
depreciation and -9,808,131 -8,778,536
amortization
Real estate held for 56,030,530 53,413,903
investment, net
Real estate and lease
intangibles held 194,986 91,784
for sale, net
Cash and cash equivalents 368,534 434,842
Accounts receivable, net 1,217,817 1,053,487
Lease intangible assets, 5,584,800 5,717,241
net
Goodwill 4,932,199 4,932,199
Investment in loans and
financing 5,030,205 3,271,002
receivables, net
Investment in 1,617,384 1,256,456
unconsolidated entities
Other assets, net 2,973,959 2,624,698
Total assets $ 77,950,414 $ 72,795,612
LIABILITIES AND EQUITY
Distributions payable $ 265,518 $ 255,171
Accounts payable and 1,094,942 1,060,969
accrued expenses
Lease intangible 1,463,929 1,493,958
liabilities, net
Other liabilities 1,062,753 1,066,809
Revolving credit facilities
and 2,127,928 2,023,414
commercial paper
Term loans, net 2,772,340 1,701,615
Mortgages payable, net 36,745 37,761
Notes payable, net 26,451,863 25,031,947
Total liabilities $ 35,276,018 $ 32,671,644
Redeemable noncontrolling $ 71,745 $ —
interests
Stockholders’ equity:
Common stock and paid in
capital, par
value $0.01 per share,
1,300,000 shares
authorized,950,964 and
933,975 shares $ 51,149,067 $ 49,861,660
issued and outstanding as
of September
30, 2026 and December 31,
2025,
respectively
Distributions in excess of -11,761,979 -10,527,984
net income
Accumulated other 104,861 105,019
comprehensive income
Total stockholders’ equity $ 39,491,949 $ 39,438,695
Noncontrolling interests 3,110,702 685,273
Total equity $ 42,602,651 $ 40,123,968
Total liabilities and $ 77,950,414 $ 72,795,612
equity
- 15 -
GLOSSARY
Adjusted EBITDA
re.
The National Association of Real Estate Investment Trusts ("Nareit") established
an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or
EBITDA re ) it believed would provide investors with a consistent measure to
help make investment decisions among certain REITs. Our definition of “Adjusted
EBITDA re ” is generally consistent with the Nareit definition, other than our
adjustment to remove foreign currency and derivative gain and loss and merger,
transaction, and other costs, net. We define Adjusted EBITDA re , a non-GAAP
financial measure, for the most recent quarter as earnings (net income) before
(i) interest expense, (ii) income taxes, (iii) depreciation and amortization,
(iv) executive severance charge, (v) provisions for impairment of real estate,
(vi) provisions for credit losses on loans and financing receivables, (vii)
merger, transaction, and other costs, net, (viii) gain on sales of real estate,
(ix) foreign currency and derivative gain and loss, net, and (x) equity in
earnings of unconsolidated entities . Our Adjusted EBITDA re may not be
comparable to Adjusted EBITDA re reported by other companies or as defined by
Nareit, and other companies may interpret or define Adjusted EBITDA re
differently than we do. Management believes Adjusted EBITDA re to be a
meaningful measure of a REIT’s performance because it provides a view of our
operating performance, analyzes our ability to meet interest payment obligations
before the effects of income tax, depreciation and amortization expense,
provisions for impairment, provisions for credit losses on loans and financing
receivables, gain on sales of real estate and other items, as defined above,
that affect comparability, including the removal of non-recurring and non-cash
items that industry observers believe are less relevant to evaluating the
operating performance of a company. In addition, EBITDA re is widely followed by
industry analysts, lenders, investors, rating agencies, and others as a means of
evaluating the operating performance of business activities prior to servicing
debt obligations. Adjusted EBITDA re should be considered along with, but not as
an alternative to, net income as a measure of our operating performance.
Adjusted Free Cash Flow
, a non-GAAP financial measure, is defined as net cash provided by operating
activities, less certain capital expenditures and distributions paid to common
stockholders and noncontrolling interests, plus merger, transaction, and other
costs, net, and adjusted for changes in net working capital. We believe adjusted
free cash flow to be a useful liquidity measure for us and our investors by
helping to evaluate our ability to generate cash beyond what is needed to fund
capital expenditures, debt service and other obligations. Notwithstanding cash
on hand and incremental borrowing capacity, adjusted free cash flow reflects our
ability to grow our business through investments and acquisitions, as well as
our ability to return cash to shareholders through dividends. Adjusted free cash
flow is not considered under generally accepted accounting principles to be a
primary measure of an entity’s residual cash flow available for discretionary
spending, and accordingly should not be considered an alternative to operating
income, net income, or amounts shown in our consolidated statements of cash
flows.
Adjusted Funds From Operations (AFFO)
, a non-GAAP financial measure, is defined as FFO adjusted for unique revenue
and expense items, which we believe are not as pertinent to the measurement of
our ongoing operating performance. Most companies in our industry use a similar
measurement to AFFO, but they may use the term "CAD" (for Cash Available for
Distribution) or "FAD" (for Funds Available for Distribution). We believe AFFO
provides useful information to investors because it is a widely accepted
industry measure of the operating performance of real estate companies used by
the investment community. In particular, AFFO provides an additional measure to
compare the operating performance of different REITs without having to account
for differing depreciation assumptions and other unique revenue and expense
items which are not pertinent to measuring a particular company’s ongoing
operating performance. Therefore, we believe that AFFO is an appropriate
supplemental performance metric, and that the most appropriate GAAP performance
metric to which AFFO should be reconciled is net income available to common
stockholders.
Annualized Adjusted EBITDA
re
, a non-GAAP financial measure, is calculated by multiplying Adjusted EBITDA re
for the applicable quarter by four. Management believes the use of an Annualized
Adjusted EBITDA re metric is meaningful because it represents our run rate
operating performance for the period presented.
Annualized Adjusted Free Cash Flow
, a non-GAAP financial measure, is calculated by annualizing Adjusted Free Cash
Flow.
Annualized Base Rent
represents our Pro-Rata Share of contractual monthly base rent for all leases in
place and exchange rates as of the balance sheet date, multiplied by 12, and
excludes percentage rent and income on loans and preferred equity investments.
If there is a rent abatement, we annualize the first monthly contractual base
rent following the free rent period. Total annualized base rent has not been
reduced to reflect reserves recorded as reductions to GAAP rental revenue in the
periods presented. We believe total annualized base rent is a useful
supplemental operating measure, as it excludes properties that were no longer
owned at the balance sheet date and includes the annualized rent from properties
acquired during the quarter.
Annualized Pro Forma Adjusted EBITDA
re
, a non-GAAP financial measure, is defined as Annualized Adjusted EBITDA re ,
which includes transaction accounting adjustments in accordance with U.S. GAAP,
adjusted to incorporate Adjusted EBITDA re from investments we acquired or
stabilized during the applicable quarter and Adjusted EBITDA re from investments
we disposed of during the applicable quarter, giving pro forma effect to all
transactions as if they occurred at the beginning of the applicable quarter. Our
calculation includes all adjustments consistent with the requirements to present
Annualized Adjusted EBITDA re on a pro forma basis in accordance with Article 11
of Regulation S-X. The ratio of our net debt to our Annualized Pro Forma
Adjusted EBITDA re is also used to determine the vesting of performance share
awards granted to our executive officers.
Cash Income
represents expected rent for real estate acquisitions as well as rent to be
received upon completion of the properties under development. For unconsolidated
entities and consolidated entities with noncontrolling interests, this
represents our Pro-Rata Share of the cash income. For loans receivable and
preferred equity investments, this represents earned interest income and
preferred dividend income, respectively.
Funds From Operations (FFO)
, a non-GAAP financial measure, consistent with the Nareit definition, is net
income available to common stockholders, plus depreciation and amortization of
real estate assets, plus provisions for impairments of depreciable real estate
assets, and reduced by gain on property sales. Presentation of the information
regarding FFO and AFFO is intended to assist the reader in comparing the
operating performance of different REITs, although it should be noted that not
all REITs calculate FFO and AFFO in the same way, so comparisons with other
REITs may not be meaningful. FFO and AFFO should not be considered alternatives
to reviewing our cash flows from operating, investing, and financing activities.
In addition, FFO and AFFO should not be considered measures of liquidity, of our
ability to make cash distributions, or of our ability to pay interest payments.
We consider FFO to be an appropriate supplemental measure of a REIT’s operating
performance as it is based on a net income analysis of property portfolio
performance that adds back items such as depreciation and impairments for FFO.
The historical accounting convention used for real estate assets requires
straight-line depreciation of buildings and improvements, which implies that the
value of real estate assets diminishes predictably over time. Since real estate
values historically rise and fall with market conditions, presentations of
operating results for a REIT using historical accounting for depreciation could
be less informative. The use of FFO is recommended by the REIT industry as a
supplemental performance measure. In addition, FFO is used as a measure of our
compliance with the financial covenants of our credit facility.
Gross Asset Value
is total assets before accumulated depreciation and amortization.
Initial Weighted Average Cash Yield
for acquisitions and properties under development is computed as Cash Income for
the first twelve months following the acquisition date, divided by the total
cost of the property (including all expenses borne by us), and includes our Pro-
Rata Share of Cash Income from unconsolidated joint ventures and consolidated
entities with noncontrolling interests. Initial weighted average cash yield for
loans receivable and preferred equity investments is computed using the Cash
Income for the first twelve months following the acquisition date, divided by
the total cost of the investment.
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Investment Grade Clients
are our clients, our clients that are subsidiaries or affiliates of companies,
and credit investments secured with a real estate property leased to a tenant
that, as of the balance sheet date, have a credit rating of Baa3/BBB- or higher
from one of the three major rating agencies (Moody’s/S&P/Fitch).
Net Debt/Annualized Pro Forma Adjusted EBITDA
re
, a ratio used by management as a measure of leverage, is calculated as net debt
(which we define as total debt, excluding deferred financing costs and net
discounts, less cash and cash equivalents), divided by Annualized Pro Forma
Adjusted EBITDA re.
Net Debt/Annualized Pro Forma Adjusted EBITDA
r
e - Inclusive of Unsettled ATM Forward Equity,
a ratio used by management as a measure of leverage, is calculated as net debt
inclusive of unsettled ATM forward equity (which we define as total debt,
excluding deferred financing costs and net discounts, less cash and cash
equivalents, less expected proceeds from unsettled ATM forward equity as of the
balance sheet date), divided by Annualized Pro Forma Adjusted EBITDA re .
Normalized Funds from Operations Available to Common Stockholders (Normalized
FFO) , a non-GAAP financial measure, is FFO excluding merger, transaction, and
other costs, net.
Pro-Rata Share
represents our proportionate economic ownership of our joint ventures, which is
derived by applying our economic ownership percentage of each such joint venture
to calculate our proportionate share of the relevant line item information being
presented, and aggregating that information for all such joint ventures. For
balance sheet information and other capital-based metrics, we apply our economic
ownership percentage as of the end of the applicable period being presented, and
for activity- and earnings-based metrics, we apply our weighted average economic
ownership percentage for the applicable period being presented, unless otherwise
specified.
We believe this form of presentation offers insights into the financial
performance and condition of our company as a whole, given the significance of
our joint ventures that are accounted for either under the equity method or
consolidated with the third parties' share included in noncontrolling interest,
although the presentation of such information may not accurately depict the
legal and economic implications of holding a noncontrolling interest in the
joint venture. We do not control the unconsolidated joint ventures in which we
are invested for purposes of GAAP and do not represent legal claim to such
items.
The operating agreements of the joint ventures may contain provisions that would
cause us to receive a different economic percentage of distributions from the
joint venture under certain circumstances, such as the amount of capital
contributed by each investor and whether any contributions are entitled to
priority distributions. Similarly, upon a liquidation of any such joint venture,
subject to the applicable terms of the operating agreement of such joint
venture, we generally would be entitled to the applicable percentage of residual
cash or other assets that remain only after repayment of all liabilities,
priority distributions, and initial equity contributions. In addition, the
economic interests in any joint venture may be different than our other legal
interests or rights in such joint venture.
We provide pro-rata financial information because we believe it assists
investors and analysts in estimating our economic interest in our joint ventures
when read in conjunction with our reported results under GAAP. Other companies
may calculate their proportionate interest differently than we do, limiting the
usefulness as a comparative measure. Due to these limitations, the non-GAAP pro-
rata financial information should not be considered in isolation or as a
substitute for our consolidated financial statements as reported under GAAP.
Rent Recapture Rate
is calculated by comparing our Pro-Rata Share of new cash rents to our Pro-Rata
Share of prior cash rents for renewals to the same client and leases to new
clients with at least 12 months of new term. New cash rents represent the first
month of contractual monthly base rent of the new lease or renewal, multiplied
by 12. If there is a rent abatement, we annualize the first monthly contractual
base rent following the free rent period. Prior cash rents represent the last
month of contractual monthly base rent for the most recent expiring lease,
multiplied by 12.
Same Store Pool
, for purposes of determining the properties used to calculate our same store
rental revenue, includes all properties that we owned for the entire year-to-
date period, for both the current and prior year except for properties during
the current or prior year that were: (i) vacant at any time, (ii) under
development or redevelopment, or (iii) involved in eminent domain and rent was
reduced.
Same Store Rental Revenue
excludes straight-line rent, the amortization of above and below-market leases,
and reimbursements from clients for recoverable real estate taxes and operating
expenses. For purposes of comparability, same store rental revenue is presented
on a constant currency basis by applying the exchange rate as of the balance
sheet date to base currency rental revenue. We present same store rental revenue
on a pro-rata basis to account for our share of same store rental revenue
related to unconsolidated and consolidated joint ventures. For purposes of
comparability, we calculate our Pro-Rata Share using our ownership percentage as
of September 30, 2026 to same store rental revenue for the three and nine months
ended September 30, 2026 and 2025.
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