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Realty Income has raised its 2026 adjusted funds from operations (FFO) forecast after reporting strong quarterly performance supported by steady leasing demand and increased investment activity. The real estate investment trust also increased its full-year investment guidance following continued expansion across retail and commercial assets. The company reported better-than-expected quarterly revenue and earnings, helped by stable rental growth and long-term lease agreements. Realty Income’s partnership with Apollo Global Management for a major retail property joint venture further strengthened its investment pipeline as the company continued to expand its portfolio across multiple sectors.
Realty Income has increased its annual adjusted funds from operations (FFO) guidance for 2026 after reporting stronger demand across its property portfolio and higher investment activity during the first quarter. Advertisement
The San Diego-based real estate investment trust said adjusted FFO per share for 2026 is now expected to be between USD 4.41 and USD 4.44, compared to its earlier forecast of USD 4.38 to USD 4.42. The revised guidance came after the company reported quarterly earnings and revenue above market estimates.
Following the announcement, the company’s shares rose nearly 1% in after-hours trading.
For the quarter ended in March, Realty Income reported adjusted FFO of USD 1.13 per share, higher than analysts’ estimates of USD 1.10 per share, according to LSEG data. First-quarter revenue stood at USD 1.55 billion, exceeding market expectations of USD 1.45 billion.
The company also raised its full-year investment guidance to USD 9.5 billion from the earlier estimate of USD 8 billion, indicating stronger acquisition and expansion activity across its portfolio.
Earlier this year, Realty Income announced that it would receive USD 1 billion from asset manager Apollo Global Management and its affiliates in exchange for a 49% stake in a newly formed joint venture. The venture is expected to own a portfolio of single-tenant retail properties operating under long-term net lease agreements. The transaction was seen as part of the company’s strategy to strengthen capital partnerships while continuing portfolio expansion.
Realty Income has maintained its annual same-store rent growth guidance between 1.0% and 1.3%, reflecting stable occupancy and rental collections despite a cautious commercial real estate environment in several global markets.
The company currently owns a portfolio of more than 15,500 properties leased to over 1,786 clients across sectors including retail, restaurants, industrial and gaming. Major tenants include Walgreens and Dollar General, both of which continue to remain key contributors to the company’s recurring rental income.
Over the past few years, Realty Income has continued expanding beyond traditional retail assets into industrial and gaming-related real estate to diversify income streams and reduce dependence on a single segment. The company has also remained active in large-scale acquisitions and international expansion efforts as competition for stable income-generating assets increases.
Source Reuters
5th Jun, 2025
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