COMPANY HIGHLIGHTS:
For the three months ended December 31, 2025:
Net income available to common stockholders was $296.1 million, or $0.32 per share
Adjusted Funds from Operations ("AFFO") was $1.08 per share
Invested $2.4 billion; our pro-rata share was $2.3 billion at an initial weighted average cash yield of 7.1%
Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.4x
Settled 14.0 million shares of outstanding forward sale agreements through our At-The-Market ("ATM") program for gross proceeds of $817.8 million
Achieved a rent recapture rate of 104.9% on properties re-leased
Successfully launched our inaugural perpetual life U.S. Open-End Core Plus Fund, raising $1.5 billion in total commitments through year end
For the year ended December 31, 2025:
Net income available to common stockholders was $1.1 billion, or $1.17 per share
AFFO was $4.28 per share
Invested $6.3 billion; our pro-rata share was $6.2 billion at an initial weighted average cash yield of 7.3%
Settled 42.0 million shares of outstanding forward sale agreements through our ATM program for gross proceeds of $2.4 billion
Achieved a rent recapture rate of 103.9% on properties re-leased
Events subsequent to December 31, 2025:
In January 2026, issued $862.5 million aggregate principal amount of 3.500% convertible senior notes due January 2029
In January 2026, announced the establishment of a strategic relationship with GIC, including the establishment of a build-to-suit development joint venture with total combined commitments of over $1.5 billion
Expanded to Mexico in scale with a $200.0 million takeout commitment for USD-denominated, long-term leased industrial portfolio, representing our first investment in Mexico
CEO Comments
"2025 represented another year of consistent returns and deliberate execution of strategic initiatives that will amplify our competitive strengths," said Sumit Roy, Realty Income's President and Chief Executive Officer. "The momentum in our business is palpable. Our fourth quarter investment volume of $2.4 billion represents a meaningful acceleration in activity, and our active pipeline for 2026 is reflected in our initial investment volume guidance of approximately $8.0 billion. In concert with healthy portfolio occupancy and underlying tenant credit, we are introducing 2026 AFFO per share guidance of $4.38 - $4.42, representing annual growth of approximately 2.8% at the midpoint and approximately 9% total operational return."
"Our growth outlook is supported by an ever-expanding global addressable market. Our unique platform now benefits from additional sources of private capital, including our U.S. Core Plus fund and GIC partnership. We are honored by the trust we have established with these investors and are energized by the opportunity to deliver reliable long-term value for all stakeholders."
Select Financial Results
The following summarizes our select financial results (dollars in millions, except per share data):
Three months ended
December 31,
Years ended
December 31,
2025
2024
2025
2024
Total revenue
$ 1,487.9
$ 1,340.3
$ 5,749.4
$ 5,271.1
Net income available to common stockholders (1)
$ 296.1
$ 199.6
$ 1,058.6
$ 847.9
Net income per share
$ 0.32
$ 0.23
$ 1.17
$ 0.98
Funds from operations available to common stockholders (FFO) (2)
$ 985.9
$ 897.9
$ 3,860.3
$ 3,467.7
FFO per share
$ 1.07
$ 1.02
$ 4.25
$ 4.01
Normalized funds from operations available to common stockholders (Normalized FFO) (2)
$ 996.1
$ 888.7
$ 3,884.5
$ 3,564.0
Normalized FFO per share
$ 1.08
$ 1.01
$ 4.27
$ 4.12
Adjusted funds from operations available to common stockholders (AFFO) (2)
$ 996.7
$ 921.9
$ 3,885.9
$ 3,621.4
AFFO per share
$ 1.08
$ 1.05
$ 4.28
$ 4.19
(1)
The calculation to determine net income available to common stockholders includes provisions for impairment, 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 Increases
In December 2025, we announced the 113th consecutive quarterly dividend increase, which is the 133rd increase since our listing on the New York Stock Exchange ("NYSE") in 1994. The annualized dividend amount as of December 31, 2025 was $3.240 per share. The amount of monthly dividends paid per share increased 2.9% to $3.217 in 2025, as compared to $3.126 in 2024, representing 75.2% of our diluted AFFO per share of $4.28 during the year ended December 31, 2025.
Real Estate Portfolio Update
As of December 31, 2025, we owned or held interests in 15,511 properties, which were leased to 1,761 clients doing business in 92 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 8.8 years. Our portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of December 31, 2025, portfolio occupancy was 98.9% with 173 properties available for lease or sale, as compared to 98.7% as of September 30, 2025 and December 31, 2024. 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. Below is a summary of our portfolio activity for the periods indicated below:
Changes in Occupancy
Three months ended December 31, 2025
Properties available for lease as of September 30, 2025
204
Lease expirations (1)
378
Re-leases to same client
(285)
Re-leases to new client
(9)
Vacant dispositions
(115)
Properties available for lease as of December 31, 2025
173
Year ended December 31, 2025
Properties available for lease as of December 31, 2024
205
Lease expirations (1)
1,317
Re-leases to same client
(963)
Re-leases to new client
(52)
Vacant dispositions
(334)
Properties available for lease as of December 31, 2025
173
(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 December 31, 2025, the new annualized base rent on re-leased units was $88.30 million, as compared to the previous annual rent of $84.21 million on the same units, representing a rent recapture rate of 104.9% on the re-leased units. Please see the Glossary for our definition of annualized base rent.
During the year ended December 31, 2025, the new annualized base rent on re-leased units was $301.99 million, as compared to the previous annual rent of $290.61 million on the same units, representing a rent recapture rate of 103.9% on the re-leased units.
Investment SummaryThe following table summarizes our investments in the U.S. and Europe for the periods indicated below (dollars in millions):
Three months ended
December 31, 2025
Year ended
December 31, 2025
Investment
Pro-Rata
Share (1)
Weighted Average Term (Years)
Number of
Properties
Investment
Pro-Rata
Share (1)
Weighted Average Term (Years)
Number of
Properties
Acquisitions
U.S. wholly-owned
$ 293.7
$ 293.7
11.6
46
$ 917.0
$ 917.0
14.2
151
U.S. Private Fund Business
243.2
168.9
10.5
26
323.3
248.9
12.5
29
Europe wholly-owned
887.8
887.8
8.9
42
2,911.8
2,911.8
8.7
88
Total real estate acquisitions(2)
$ 1,424.7
$ 1,350.4
9.7
114
$ 4,152.1
$ 4,077.7
10.1
268
Initial weighted average cash yield(3)
6.9 %
7.0 %
Real estate properties under development
U.S. wholly-owned
$ 72.0
$ 72.0
16.7
31
$ 285.7
$ 285.7
16.6
91
Europe wholly-owned
43.3
43.3
10.6
6
59.5
59.5
12.0
9
Non-wholly owned(4)
49.8
48.2
11.0
12
192.5
188.6
12.1
12
Total real estate properties under development(2)
$ 165.1
$ 163.5
13.3
49
$ 537.7
$ 533.8
14.5
112
Initial weighted average cash yield(3)
7.4 %
7.4 %
Other investments
U.S. wholly-owned(5)
$ 800.5
$ 800.5
26.0
—
$ 1,001.4
$ 1,001.4
20.3
—
Europe wholly-owned(6)
—
—
—
—
606.5
606.5
4.1
—
Total other investments
$ 800.5
$ 800.5
26.0
—
$ 1,607.9
$ 1,607.9
14.0
—
Initial weighted average cash yield(3)
7.4 %
8.2 %
Total investments
$ 2,390.3
$ 2,314.4
15.9
163
$ 6,297.7
$ 6,219.4
11.6
380
Initial weighted average cash yield(3)
7.1 %
7.3 %
Supplementary Information:
Total U.S. volume
$ 1,363.7
$ 2,505.2
Initial weighted average cash yield(3)
7.0 %
7.3 %
Total Europe volume
$ 950.7
$ 3,714.2
Initial weighted average cash yield(3)
7.2 %
7.4 %
Investment Grade Clients(7)
37 %
30 %
(1)
Reflects adjustments for our share based on our proportionate economic ownership of our joint ventures (which adds our pro-rata share of unconsolidated entities and deducts our noncontrolling interests share). Please see the Glossary for our definition of Pro-Rata Share for more information.
(2)
For the three months ended December 31, 2025, our clients occupying the new properties are 55.0% retail, 43.6% industrial, and 1.4% other property types based on Cash Income. For the year ended December 31, 2025, our clients occupying the new properties are 69.5% retail, 30.0% industrial, and 0.5% other property types based on Cash Income. Please see the Glossary for our definition of Cash Income.
(3)
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 months and year ended December 31, 2025 includes $2.8 million and $6.5 million, respectively, received as settlement credits related to the reimbursement of free rent periods. Please see the Glossary for our definitions of Initial Weighted Average Cash Yield and Cash Income.
(4)
Non-wholly owned represents U.S. and European investments not 100% owned by Realty Income, excluding the U.S. Private Fund Business.
(5)
For the three months ended December 31, 2025, includes an $800.0 million perpetual preferred equity investment in CityCenter's real estate assets, owned by funds affiliated with Blackstone Real Estate. For the year ended December 31, 2025, includes an investment in a loan related to a development project, as well as the perpetual preferred equity investment.
(6)
For the year ended December 31, 2025, includes two mortgage loans and senior secured notes issued by existing clients.
(7)
Represents approximate percentage of annualized cash income generated by investments from Investment Grade Clients at the date of acquisition. Please see the Glossary for our definition of Investment Grade Clients.
Same Store Rental RevenueThe following summarizes our same store rental revenue for 14,345 properties under lease for the three months and year ended December 31, 2025, respectively (dollars in millions):
Three months ended
December 31,
Years ended
December 31,
% Increase
2025
2024
2025
2024
Three Months
Year
Same Store Rental Revenue
$ 1,147.3
$ 1,134.3
$ 4,575.9
$ 4,518.5
1.1 %
1.3 %
For purposes of comparability, Same Store Rental Revenue is presented on a constant currency basis using the applicable exchange rate as of December 31, 2025. 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. Beginning with the second quarter of 2024, properties acquired through our merger with Spirit Realty Capital, Inc. ("Spirit") were considered under each element of our Same Store Pool criteria, except for the requirement that the property be owned for the full comparative period. If the property was owned by Spirit or Realty Income for the full comparative period and each of the other criteria were met, the property was included in our Same Store Pool. Please see the Glossary to see definitions of our Same Store Pool and Same Store Rental Revenue.
Property DispositionsThe following summarizes our property dispositions (dollars in millions):
Three months ended December 31, 2025
Year ended December 31, 2025
Properties sold
157
425
Net sales proceeds
$ 319.8
$ 744.0
Gain on sales of real estate
$ 67.4
$ 177.6
Liquidity and Capital Markets
LiquidityAs of December 31, 2025, we had $4.1 billion of total available liquidity at our Pro-Rata Share(1), comprised of the components summarized below (dollars in millions):
Pro-Rata Share of cash and cash equivalents (2)
$ 419.4
Pro-Rata Share of availability under credit facilities (3)
3,507.2
Unsettled ATM forwards
708.5
Less: commercial paper borrowings
(516.8)
Total available liquidity at our Pro-Rata Share
$ 4,118.3
(1)
Reflects adjustments for our share based on our proportionate economic ownership of our joint ventures (which adds our pro-rata share of unconsolidated entities and deducts our noncontrolling interests share). Please see the Glossary for our definition of Pro-Rata Share for more information.
(2)
Please see page 13 herein for a reconciliation of consolidated cash and cash equivalents to Pro-Rata Share of cash and cash equivalents.
(3)
Represents our availability under the Realty Income revolving credit facilities ("RI Revolving Credit Facilities") with a total capacity of $4.0 billion and our Pro-Rata Share of availability under the Fund Revolving Credit Facilities with a total capacity of $1.38 billion.
Capital RaisingDuring the three months and year ended December 31, 2025, we raised $820.9 million and $2.4 billion of proceeds, respectively, from the sale of common stock at weighted average prices of $58.28 and $57.14 per share. Such proceeds were raised primarily through the sale of approximately 14.0 million and 42.0 million shares of common stock, respectively, pursuant to forward sale agreements under our ATM program. As of February 24, 2026, there were approximately 12.6 million shares of unsettled common stock subject to forward sale agreements through our ATM program, representing approximately $708.5 million in expected net proceeds and a weighted average initial gross price of $57.49 per share. ATM net sale proceed amounts 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 October 2025, we issued $400.0 million of 3.950% senior unsecured notes due February 2029 and $400.0 million of 4.500% senior unsecured notes due February 2033.
In November 2025, we entered into a term loan agreement that amends and restates the prior agreement governing our $1.5 billion multi-currency term loan, dated January 6, 2023. The agreement provides for a £900.0 million sterling-denominated term loan that matures in January 2028, subject to one twelve-month extension option.
In January 2026, we issued $862.5 million aggregate principal amount of 3.500% convertible senior notes due January 2029 in a private offering, for estimated net proceeds of $845.5 million. We used approximately $101.9 million of the net proceeds to repurchase approximately 1.8 million shares of our common stock concurrently with the pricing of the offering.
In December 2025, we secured an additional $816.3 million in commitments for our U.S. Private Fund Business (the "Fund"), bringing total commitments to approximately $1.5 billion. As a result of this and previously announced closings, the Company anticipates to close its cornerstone equity capital raise round on or before March 31, 2026 and is capping its commitments during this round at $1.7 billion.
Guidance
Summarized below are approximate estimates of the key components of our 2026 earnings guidance (with 2025 Actuals for comparison):
2026 Guidance
2025 Actuals
Net income per share(1)
$1.65 - $1.69
$1.17
Real estate depreciation per share
$2.68
$2.78
Other adjustments per share(2)
$0.05
$0.33
AFFO per share
$4.38 - $4.42
$4.28
Same store rent growth
1.0% - 1.3%
1.3 %
Occupancy
Approx 98.5%
98.9 %
Cash G&A expenses (% of total gross asset value)(3)(4)
20 - 23 bps
21 bps
Property expenses (non-reimbursable) (% of total revenue)(5)
Approx 1.5%
1.6 %
Income tax expenses
$100 - $110 million
$85 million
Investment volume (at 100%)
$8.0 billion
$6.3 billion
Lease termination income
$30 - $40 million
$49 million
(1)
Net income per share excludes future impairment and foreign currency or derivative gains or losses due to the inherent unpredictability of forecasting these items.
(2)
Includes net adjustments for gains or losses on sales of properties, impairments, and merger, transaction, and other non-recurring costs.
(3)
Cash G&A represents 'General and administrative' expenses as presented in our consolidated statements of income, less share-based compensation costs. Total gross asset value is total assets before accumulated depreciation and amortization.
(4)
G&A expenses inclusive of stock-based compensation expense as a percentage of total gross asset value is expected to be approximately 24 - 27 bps in 2026.
(5)
Total revenue excludes client reimbursements.
Conference Call Information
In conjunction with the release of our operating results, we will host a conference call on February 24, 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 3554425. The telephone replay will be available through March 3, 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 months and year ended December 31, 2025 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 December 31, 2025, 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 listing on the NYSE in ...
