Net lease REIT Realty Income Q3 revenue beats estimates

Reuters
Nov 04
Net lease REIT Realty Income Q3 revenue beats estimates

Overview

  • Realty Income Q3 revenue beats estimates, reaching $1.47 bln

  • AFFO per share for Q3 was $1.08, up from $1.05 last year

  • Company updates 2025 AFFO guidance to $4.25 - $4.27 per share

Outlook

  • Realty Income updates 2025 AFFO per share guidance to $4.25 - $4.27

  • Company raises 2025 investment volume guidance to approximately $5.5 bln

Result Drivers

  • INVESTMENTS - Realty Income invested $1.4 bln at a weighted average cash yield of 7.7%, contributing to Q3 results

  • RENT RECAPTURE - Achieved a rent recapture rate of 103.5% on properties re-leased, indicating strong portfolio management

  • EUROPEAN INVESTMENTS - European investments accounted for $1.0 bln, highlighting their importance in Q3 performance

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.47 bln

$1.37 bln (14 Analysts)

Q3 EPS

$0.35

Q3 Net Income

$315.80 mln

Q3 FFO

$981.10 mln

Q3 FFO Per Share

$1.07

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 19 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the commercial reits peer group is "buy."

  • Wall Street's median 12-month price target for Realty Income Corp is $62.00, about 6.5% above its October 31 closing price of $57.98

  • The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nPn8c4Rj0a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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