0 NDR Takeaways - Scale Matters

Research evidence excerpt

0 NDR Takeaways - Scale Matters

USA | REITs

Realty Income EquityJulyResearch6, 2026

FLASH NOTEO NDR Takeaways - Scale Matters

We hosted Realty Income CEO Sumit Roy for a week of investor meetings RATING BUY

across Europe. Discussions centered on O's widening opportunity set: European PRICE $63.84^

expansion, data center ambitions, and the growing private capital platform. The PRICE TARGET | % TO PT $69.00 | +8%

message reinforced our thesis that O's scale and diversified funding are durable 52W HIGH-LOW $67.94 - $55.86

value drivers rather than execution distractions, supporting a path back toward FLOAT (%) | ADV MM (USD) 99.8% | 414.08

historical AFFO/sh growth. Reiterate Buy, $69 PT. MARKET CAP $59.5B

TICKER O

European expansion continues. Management views Europe as a fragmented market with ^Prior trading day's closing price unless otherwise noted.

attractive pricing, while in the US many smaller players are bidding up good product to cap rates that

do not make much sense for O. Recent investment volume has been split roughly 50/50 between the

US and Europe, and O sees itself as one of the few scale solution providers capable of large, multi-

jurisdictional sale-leasebacks. Industrial in Poland and parts of Western Europe screens attractive;

the UK bar is higher given the rising cost of doing business, though debt investments there remain

efficient given no tax leakage.

Diversification away from retail will continue. Retail is down to ~78-79% of the portfolio and

should keep shrinking as growth skews toward industrial and data centers. Single-tenant industrial

is attractive across the US and Europe, supported by onshoring/nearshoring demand for big boxes

against constrained supply; sub-6% cap rate product does not pencil on balance sheet today