REALTY INCOME CORP (O) Earnings History

REALTY INCOME CORP - Q3 FY2025 Earnings

Filed at: Nov 3, 2025, 3:11 PM EST|Read from source

EXECUTIVE SUMMARY

Realty Income reported solid third-quarter results, demonstrating a durable and diversified income engine with strong international investment activity and stable internal portfolio growth. The company is updating its full-year guidance, reflecting positive momentum.

POSITIVE HIGHLIGHTS

  • •

    Invested $1.4 billion in the quarter with an initial weighted average cash yield of 7.7%, including significant European investments.

    positive
  • •

    Achieved a rent recapture rate of 103.5% on re-leased properties, indicating effective asset management.

    positive
  • •

    Portfolio occupancy remained strong at 98.7% as of September 30, 2025.

    positive
  • •

    Announced the 112th consecutive quarterly dividend increase, highlighting a consistent return to shareholders.

    positive

CONCERNS & RISKS

  • •

    Provisions for impairment were $87.0 million for the quarter, a notable expense impacting net income.

    attention
  • •

    Net Debt to Annualized Pro Forma Adjusted EBITDAre remained at 5.4x, indicating a consistent leverage level.

    attention
  • •

    Merger, transaction, and other costs were $13.3 million for the quarter, impacting profitability.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.47B
+10.5%
Prior year: $1.33B
Net Income
Quarterly
$315.80M
+20.6%
Prior year: $261.80M
EPS (Diluted)
Quarterly
$0.35
+16.7%
Prior year: $0.30
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$0.35
+16.7%
Prior year: $0.30

MARGIN ANALYSIS

Net Margin
Current Quarter
21.5%
Prior Year
19.7%
YoY Change
+181 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY 2025

affo_per_share
4.25—4.27
Mid-point: 4.26
"Updated guidance"
investment_volume
5.5—5.5
Mid-point: 5.5
"Updated guidance"
net_income_per_share
1.27—1.29
Mid-point: 1.28
"Revised guidance, excludes future impairment and foreign currency or derivative gains or losses."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Provisions for impairment
Impacts net income comparability.
+$87M
Q3 2025
Merger, transaction, and other costs, net
Impacts net income comparability.
+$13.3M
Q3 2024
Provisions for impairment
Impacts net income comparability.
+$96.9M
Q3 2024
Merger, transaction, and other costs, net
Impacts net income comparability.
+$8.6M
Total Impact
+$205.8M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Realty Income has built a durable and diversified engine for income, illustrated in third quarter results.

— REALTY INCOME CORP, Q3 FY2025 2025 Earnings Call

Expanded access to diverse sources of equity and favorable investment yields across geographies differentiate the platform.

— REALTY INCOME CORP, Q3 FY2025 2025 Earnings Call

European investments remain a significant portion of executed volume.

— REALTY INCOME CORP, Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Affo Per Share
1.1
+2.9% YoY
Prior year: 1.1
dollars
Net Debt To Annualized Pro Forma Adjusted Ebitda Re
5.4
0.0% YoY
Prior year: 5.4
x
Same Store Rental Revenue Growth
1.3
0.0% YoY
Prior year: 1.3
percent

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.