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Realty Income has raised its 2026 adjusted funds from operations (FFO) forecast after improving its expectations for same-store rental growth across its property portfolio. The REIT also increased its full-year investment target, reflecting continued confidence in expansion opportunities. Alongside its traditional retail-focused assets, the company is increasing its exposure to data centres through a major joint venture announced in the past month. Realty Income's quarterly adjusted FFO met market expectations, while its diversified tenant base and long-term lease strategy continued to support stable operational performance.
Realty Income has increased its forecast for adjusted funds from operations (FFO) for 2026, supported by improved rental growth across its property portfolio. The real estate investment trust (REIT), which owns more than 15,500 properties across the retail, industrial, restaurant and gaming sectors, also revised its investment guidance upward, reflecting confidence in its expansion plans.
The company now expects its adjusted FFO for 2026 to be in the range of USD 4.44 to USD 4.45 per share, compared with its earlier guidance of USD 4.41 to USD 4.44 per share.
It also raised the lower end of its full-year same-store rent growth forecast to 1.1% to 1.3%, up from the previous estimate of 1.0% to 1.3%. The revised outlook indicates improved rental performance from properties that have been part of its portfolio for at least a year.
Realty Income continues to operate one of the largest diversified REIT portfolios in the market, with tenants including Walgreens and Dollar General. The company primarily focuses on long-term net lease agreements, under which tenants are responsible for most property-related operating expenses, providing predictable rental income.
Alongside its core real estate business, the company has been increasing its investments in data centre assets as demand for digital infrastructure continues to grow. In the past month, Realty Income announced plans to invest up to USD 1.4 billion through a joint venture with Cloud Capital to acquire three data centre properties. Under the agreement, the company will hold a 45% equity stake, marking another step in its strategy to diversify beyond traditional commercial real estate and benefit from rising demand for computing capacity.
Reflecting its active acquisition strategy, Realty Income also increased its full-year investment forecast to USD 10 billion, up from its earlier target of USD 9.5 billion.
For the quarter ended June 30, the company reported adjusted FFO of USD 1.09 per share, matching the average analyst estimate compiled by LSEG. The results indicate stable operational performance despite a changing commercial real estate environment, supported by its diversified tenant base and consistent occupancy levels.
Realty Income has continued to expand through acquisitions and portfolio diversification in recent years while maintaining a focus on stable rental income. The company's growing presence in sectors such as data centres reflects a broader trend among global REITs to invest in digital infrastructure alongside traditional real estate assets as demand patterns continue to evolve.
Source Reuters
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