It has been about a month since the last earnings report for Realty Income Corp. (O). Shares have added about 2.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Realty Income Corp. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Realty Income Corporation before we dive into how investors and analysts have reacted as of late.
Realty Income Q3 AFFO Beats Estimates, Revenues Rise Y/Y
Realty Income 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 displayed 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.
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, Realty Income 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.
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 $864.2 million and $2.2 billion of availability under its unsecured revolving credit facility.
Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.
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.
Full-year projections assume same-store rent growth of approximately 1% and occupancy of approximately 98.5%. Realty Income increased full-year investment volume of approximately $5.5 billion compared to prior guidance of $5 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
VGM Scores
Currently, Realty Income Corp. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Realty Income Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Realty Income Corp. is part of the Zacks REIT and Equity Trust - Retail industry. Over the past month, Federal Realty Investment Trust (FRT), a stock from the same industry, has gained 1.6%. The company reported its results for the quarter ended September 2025 more than a month ago.
Federal Realty Investment Trust reported revenues of $322.25 million in the last reported quarter, representing a year-over-year change of +6.1%. EPS of $0.69 for the same period compares with $1.71 a year ago.
For the current quarter, Federal Realty Investment Trust is expected to post earnings of $1.86 per share, indicating a change of +7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days.
Federal Realty Investment Trust has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Realty Income Corporation (O): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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