Realty Income's Q3 AFFO Beat Estimates, Revenues Rise Y/Y

Realty Income Corporation O reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $1.08, which outpaced the Zacks Consensus Estimate of $1.07. The reported figure compared favorably with the prior-year quarter’s AFFO of $1.05 per share.

Results display year-over-year growth in the top line. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. However, a rise in interest expenses affected the results to some extent.

Total revenues were $1.47 billion, which surpassed the Zacks Consensus Estimate of $1.42 billion. The top line rose 10.5% year over year.

Per Sumit Roy, president and CEO of Realty Income, “With expanded access to diverse sources of equity and favorable investment yields across geographies, our platform continues to demonstrate differentiation in the industry. European investments remain a significant portion of our executed volume, with approximately $1.0 billion closed internationally and $380.0 million invested domestically during the quarter.”

O’s Quarter in Detail

In the third quarter, same-store rental revenues of $1.16 billion from 14,482 properties under lease witnessed a rise of 1.3% from the prior-year period.

The portfolio occupancy of 98.7% as of Sept. 30, 2025, increased 10 basis points sequentially, while remaining unchanged year over year. In the reported quarter, the company achieved a rent recapture rate of 103.5% on re-leasing properties.

Interest expenses were up 12.7% year over year to $294.5 million in the reported quarter.

In the reported quarter, O invested $1.36 billion in 123 properties and properties under development or expansion.

The company sold 140 properties in the quarter, with net sales proceeds of $214.8 million and $49.1 million of gain on the sale of real estate.

O’s Balance Sheet

Realty Income exited the third quarter of 2025 with $3.5 billion of liquidity. This comprised cash and cash equivalents of $417.2 million, unsettled At-The-Market forward equity of $464.2 million and $2.2 billion of availability under its unsecured revolving credit facility.

Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.

Realty Income’s 2025 Guidance

Management revised its 2025 AFFO per share guidance in the range of $4.25-$4.27 compared to the prior guided range of $4.24-$4.28. The Zacks Consensus Estimate is pegged at $4.27, which is within the company’s guided range.

Full-year projections assume same-store rent growth of approximately 1% and occupancy of approximately 98.5%. O increased full-year investment volume of approximately $5.5 billion compared to prior guidance of $5 billion.

Realty Income currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Realty Income Corporation Price, Consensus and EPS Surprise

Realty Income Corporation price-consensus-eps-surprise-chart | Realty Income Corporation Quote

Performance of Other Retail REITs

Kimco Realty Corp. KIM reported third-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric grew 2.3% from the year-ago quarter.

Results reflected higher same-property net operating income (NOI), driven by a rise in minimum rents. Higher interest expenses acted as a dampener. KIM raised its quarterly dividend and 2025 FFO per share guidance range.

Regency Centers Corporation REG reported third-quarter 2025 NAREIT FFO per share of $1.15, in line with the Zacks Consensus Estimate. The figure increased 7.5% from the prior-year quarter.

REG’s results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter. The company increased its 2025 NAREIT FFO per share outlook.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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