Realty Income Charts a Course for Accelerated Growth in 2026

Realty Income projects 2026 AFFO growth to $4.40 per share, backed by $8B investment plan, a new GIC JV, and expansion into Mexico. 2025 AFFO was $4.28 per share.

Realty Income Corporation has laid out a clear roadmap for accelerated expansion, backed by solid 2025 results and a substantial new capital deployment plan. The real estate investment trust (REIT) is leveraging fresh partnerships, geographic expansion, and its institutional capital platform to fuel its next growth phase.

Financial Foundation and Forward Guidance

The company reported full-year 2025 Adjusted Funds from Operations (AFFO) of $4.28 per share, an increase from the $4.19 per share recorded in 2024. Net income attributable to common stockholders reached $1.1 billion, or $1.17 per share.

Investment activity gained momentum in the final quarter, with $2.4 billion deployed at an initial average cash yield of 7.1%. For the entire year, total investments summed to $6.3 billion at a 7.3% cash yield. Portfolio occupancy remained a key stability metric, ending the year at 98.9%.

Looking ahead to 2026, management provided AFFO guidance of $4.38 to $4.42 per share. At the midpoint, this represents projected growth of approximately 2.8%. This outlook is supported by a planned investment volume of roughly $8.0 billion.

Drivers Behind the 2026 Projections

The guidance is not solely reliant on new acquisitions. Realty Income has factored in same-store rent growth of 1.0% to 1.3% and expects to maintain a high portfolio occupancy of about 98.5%. Furthermore, credit-related losses are anticipated to decline. The company forecasts such losses at 40 to 50 basis points of revenue, a reduction from the approximately 70 basis points experienced in 2025. This combination—greater investment volume, a stable existing portfolio, and lower credit losses—forms the core of the growth forecast.

Strategic Initiatives Powering Expansion

The company has fortified its balance sheet to support this growth. In 2025, it raised $2.4 billion in equity through its at-the-market (ATM) program, issuing approximately 42.0 million shares at an average price of $57.14. More recently, in January 2026, Realty Income placed $862.5 million of convertible senior notes (3.5%, due 2029). A portion of the proceeds was used to repurchase about 1.8 million shares.

Strategically, a new partnership with Singaporean sovereign wealth fund GIC stands out. The two entities formed a build-to-suit joint venture focused on U.S. industrial properties, with combined commitments exceeding $1.5 billion. The REIT is also expanding geographically into Mexico, securing a $200 million takeout commitment for a long-term, U.S.-dollar-leased industrial portfolio, initially targeting Mexico City and Guadalajara.

Concurrently, the company's private capital platform is gaining significant traction. Its U.S. Open-End Core Plus Fund has attracted over $1.5 billion from more than 40 institutional investors, according to the earnings call. This fundraising round is expected to be capped at $1.7 billion by March 31, 2026. For 2026, Realty Income anticipates earning roughly $10 million in management fees from this fund.

Shareholder Returns and Market Performance

The company's renowned dividend profile remains robust. On February 17, Realty Income declared its 668th consecutive monthly dividend, set at $0.2700 per share. It has now increased its dividend for 113 consecutive quarters.

Market sentiment appears positive, with the share price recently trading at €56.46, hovering just below its 52-week high.

A key near-term milestone will be the finalization of the Core Plus Fund's cornerstone round. Success in reaching the $1.7 billion target by March 31, 2026, will serve as a tangible measure of the strength of this new growth channel through third-party capital.