Q4 25 EPS
$0.32
MISS 16.05%
Est. $0.38
Q4 25 Revenue
$1.49B
vs S&P Since Q4 25
-7.4%
TRAILING MARKET
O -3.4% vs S&P +4.0%
Full Year 2025 Results
FY 25 EPS
$1.17
MISS 13.61%
Est. $1.35
FY 25 Revenue
$5.75B
BEAT +5.88%
Est. $5.43B
Market Reaction
Did O Beat Earnings? Q4 2025 Results
Realty Income closed out Q4 2025 with a split verdict, a meaningful earnings miss paired with a substantial revenue beat, as the real estate investment trust navigated the costs of aggressive global expansion. Reported EPS came in at $0.32, falling 1… Read more Realty Income closed out Q4 2025 with a split verdict, a meaningful earnings miss paired with a substantial revenue beat, as the real estate investment trust navigated the costs of aggressive global expansion. Reported EPS came in at $0.32, falling 16.05% short of the $0.38 consensus estimate, weighed down by rising interest expense of $288.20 million and impairment provisions of $124.41 million in the quarter. Revenue, however, surged to $1.49 billion, beating the $1.17 billion consensus by 27.34% and growing 11.0% year over year, fueled by $2.40 billion in new investments at a 7.1% cash yield, including an $800.00 million preferred equity stake in Blackstone-affiliated CityCenter assets. Portfolio occupancy ticked up to 98.9%, and the company marked its 113th consecutive quarterly dividend increase, lifting the annualized rate to $3.24 per share. Looking ahead, management guided 2026 AFFO per share to $4.38–$4.42, implying roughly 2.8% growth, while targeting approximately $8.00 billion in investment volume, a sharp step-up from $6.30 billion in 2025, though at least one analyst has flagged that meaningful upside may take years to materialize.
Key Takeaways
- • Portfolio occupancy improved to 98.9%, up from 98.7% in both prior quarter and year-ago period
- • Q4 investment volume of $2.4 billion at 7.1% initial weighted average cash yield
- • Same store rental revenue growth of 1.1% in Q4 and 1.3% for the full year
- • Rent recapture rate of 104.9% on re-leased properties in Q4
- • European investments contributed $950.7 million in Q4 volume at 7.2% yield
- • 113th consecutive quarterly dividend increase; annualized dividend of $3.240 per share
O Forward Guidance & Outlook
Realty Income introduced 2026 AFFO per share guidance of $4.38 - $4.42, representing approximately 2.8% annual growth at the midpoint and approximately 9% total operational return. The company expects 2026 investment volume of approximately $8.0 billion (at 100%), a significant increase from $6.3 billion in 2025. Same store rent growth is projected at 1.0% - 1.3%. Occupancy is expected to be approximately 98.5%. Net income per share guidance is $1.65 - $1.69. Income tax expenses are estimated at $100 - $110 million. Lease termination income is expected at $30 - $40 million. Property expenses (non-reimbursable) are expected at approximately 1.5% of total revenue. The company also noted post-quarter events including the issuance of $862.5 million in convertible senior notes, establishment of a strategic relationship with GIC including a build-to-suit development joint venture with over $1.5 billion in combined commitments, and expansion into Mexico with a $200 million industrial portfolio commitment.
O YoY Financials
Q4 2025 vs Q4 2024, source: SEC Filings
O Revenue by Segment
With YoY comparisons, source: SEC Filings
“2025 represented another year of consistent returns and deliberate execution of strategic initiatives that will amplify our competitive strengths. The momentum in our business is palpable. Our fourth quarter investment volume of $2.4 billion represents a meaningful acceleration in activity, and our active pipeline for 2026 is reflected in our initial investment volume guidance of approximately $8.0 billion. In concert with healthy portfolio occupancy and underlying tenant credit, we are introducing 2026 AFFO per share guidance of $4.38 - $4.42, representing annual growth of approximately 2.8% at the midpoint and approximately 9% total operational return.”
— Sumit Roy, Q4 2025 Earnings Press Release
O Earnings Trends
O vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
O EPS Trend
Earnings per share: estimate vs actual
O Revenue Trend
Quarterly revenue: estimate vs actual
O Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 MISS FY | $0.38 | $0.32 | -16.05% | $1.49B | — |
| FY Full Year | $1.35 | $1.17 | -13.61% | $5.75B | +5.88% |
| Q3 25 MISS | $0.40 | $0.35 | -12.67% | $1.47B | +9.04% |
| Q2 25 MISS | $0.40 | $0.22 | -44.50% | $1.41B | +6.00% |
| Q1 25 MISS | $0.33 | $0.28 | -14.82% | $1.38B | +6.37% |
| Q2 24 MISS | $0.36 | $0.29 | -19.44% | $1.34B | +7.38% |