Realty Income Corporation "Takeaways From Call With Management" (Buy) Goldsmith

Research evidence excerpt

Realty Income Corporation "Takeaways From Call With Management" (Buy) Goldsmith

Global Research

14 May 2026ab

Realty Income Corporation Equities

United StatesTakeaways From Call With Management

Real Estate

12-month rating Buy

O is encouraged by the momentum in both its core business and private capital

Notably, O sees 1Q'26 as a clean beat-and-raise quarter even absent upside from lease 12m price target US$72.00

termination fees. It increased its 2026 AFFO guidance driven by higher investment

activity. Additionally, it thinks that there could be room for further upside to its outlook

Price (14 May 2026) US$61.96

from lower credit loss and accelerated transaction activity.

RIC: O.N BBG: O US

Strong investment volume in 1Q'26. O completed $2.8bn in investment

activity in 1Q'26. This contributed to O raising its FY investment guide to $9.5bn Trading data and key metrics

from the prior $8.0bn. O is expecting about $1.0-$1.5 bn of the 2026 investment 52-wk range US$67.56-55.18

volume guided to be in the US Core Plus fund. So the $9.5bn investment guidance Market cap. US$39.4b

for 2026 is closer to $8.5bn on a pro-rata basis. It also boosted its AFFO guidance Shares o/s 636m (COM)

on the increased activity. Specifically, O indicated that closing deals so early in the Free float 100%

year was supportive of year 1 accretion and higher AFFO. It’s current investment Avg. daily volume ('000) 1,893

guidance does not include any expansions within the Apollo or GIC partnerships. Avg. daily value (m) US$120.7

Termination fees guidance raise a function of getting ahead of potential Common s/h equity (12/26E) US$40.3b

non-renewals. O emphasized that lease termination fees are purely opportunistic P/BV (12/26E) 1.4x

and are not related to credit related risk.