Realty Income's Q4 performance fell short of expectations, and the stock price declined slightly

LootboxPhobia · 2026-02-25T08:43:44+00:00

Realty Income Corp. Q4 earnings report shows revenue of $1.49 billion exceeding expectations, but earnings per share of $1.08 fell short of analyst estimates, and the stock price dropped 0.5%. The company's full-year net profit was $1.1 billion, with projected operating funds increasing to $4.40 by 2026.

LootboxPhobia

2026-02-25 08:43:44

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San Diego - Realty Income Corp. (NYSE: O) announced its Q4 earnings, showing that despite revenue exceeding expectations, earnings per share fell short of analyst forecasts. The stock dropped 0.5% after the announcement.

The real estate investment trust reported an adjusted Funds From Operations (AFFO) of $1.08 per share for the three months ending December 31, 2025, below the consensus estimate of $0.38. Revenue reached $1.49 billion, surpassing the expected $1.37 billion. Net income attributable to common shareholders for the quarter totaled $296.1 million, or $0.32 per share.

During the quarter, the company invested $2.4 billion, with an initial weighted average cash yield of 7.1%, which management said signaled a significant acceleration in business activity. Realty Income achieved a 104.9% rent collection rate on re-leased properties during this period and maintained a net debt to annualized adjusted EBITDA ratio of 5.4x.

President and CEO Sumit Roy stated, “2025 represents another year of solid returns and prudent execution of strategic initiatives that will enhance our competitive advantage. The momentum of our business is clear.”

For the full fiscal year 2025, Realty Income reported net income of $1.1 billion, or $1.17 per share, with an adjusted AFFO of $4.28 per share. The company invested $6.3 billion throughout the year, with an initial weighted average cash yield of 7.3%.

Looking ahead, Realty Income issued guidance for 2026, expecting adjusted AFFO of $4.38 to $4.42 per share, with a median of $4.40, representing approximately 2.8% annual growth. The company anticipates investing around $8 billion in 2026.

The company also announced post-quarter developments, including an issuance of $862.5 million in convertible preferred notes in January 2026 and the establishment of a strategic partnership with GIC, including a customized development joint venture with a total commitment exceeding $1.5 billion.

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