Realty Income

O Q1 2025 Earnings

Reported May 5, 2025 at 4:07 PM ET · SEC Source

Q1 25 EPS

$0.28

MISS 14.82%

Est. $0.33

Q1 25 Revenue

$1.38B

BEAT +6.37%

Est. $1.30B

vs S&P Since Q1 25

-11.4%

TRAILING MARKET

O +17.5% vs S&P +29.0%

Market Reaction

Did O Beat Earnings? Q1 2025 Results

Realty Income posted a mixed first quarter for 2025, with an earnings-per-share figure of $0.28 falling short of the $0.33 consensus estimate by 14.82%, even as revenue of $1.38 billion topped expectations by 6.37% and grew 9.5% year-over-year. The E… Read more Realty Income posted a mixed first quarter for 2025, with an earnings-per-share figure of $0.28 falling short of the $0.33 consensus estimate by 14.82%, even as revenue of $1.38 billion topped expectations by 6.37% and grew 9.5% year-over-year. The EPS shortfall was partly obscured by the REIT's more closely watched AFFO per share, which rose 2.9% year-over-year to $1.06, a figure management views as a truer measure of recurring cash flow and one that supports the company's decades-long dividend track record. The quarter's headline drag stemmed from rising impairment provisions, which climbed to $116.59 million from $89.49 million a year ago, pressuring net income comparisons even as the company deployed $1.37 billion in new investments at a 7.5% initial cash yield, led by $824.70 million in European acquisitions. Looking ahead, management maintained its full-year AFFO per share guidance of $4.22–$4.28 while trimming net income guidance to $1.40–$1.46, citing elevated impairment expectations, with $4.00 billion in total investment volume still targeted for 2025.

Key Takeaways

  • AFFO per share grew 2.9% year-over-year to $1.06
  • Same store rental revenue growth of 1.3% on constant currency basis
  • Invested $1.4 billion at initial weighted average cash yield of 7.5%
  • European acquisitions represented $824.7 million of $1.03 billion in real estate acquisitions
  • Rent recapture rate of 103.9% on re-leased properties
  • Absence of Spirit Realty merger costs that burdened prior-year quarter ($94.1 million in Q1 2024)
24/7 Wall St

O YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

O Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q4 25

“Realty Income's ability to deliver reliable and stable performance through varying market conditions continues to be a hallmark of our platform. Throughout our history, we have strategically expanded and diversified our portfolio across geographies, asset classes, and investment types. This, combined with our high-quality tenant base, ensures the predictability and durability of our cash flows, which has proven to be especially valuable during periods of uncertainty caused by exogenous factors.”

— Sumit Roy, Q1 2025 Earnings Press Release