Realty Income

O Q2 2025 Earnings

Reported Aug 6, 2025 at 4:09 PM ET · SEC Source

Q2 25 EPS

$0.22

MISS 44.50%

Est. $0.40

Q2 25 Revenue

$1.41B

BEAT +6.00%

Est. $1.33B

vs S&P Since Q2 25

+1.6%

BEATING MARKET

O +15.6% vs S&P +14.0%

Market Reaction

Did O Beat Earnings? Q2 2025 Results

Realty Income posted a mixed second quarter for 2025, delivering a revenue beat while falling well short on the bottom line. The net lease giant reported GAAP EPS of $0.22, missing the $0.40 consensus estimate by 44.50%, as a sharp rise in impairment… Read more Realty Income posted a mixed second quarter for 2025, delivering a revenue beat while falling well short on the bottom line. The net lease giant reported GAAP EPS of $0.22, missing the $0.40 consensus estimate by 44.50%, as a sharp rise in impairment provisions, climbing to $143.36 million from $96.46 million a year ago, and higher interest expense weighed heavily on net income, which fell to $196.92 million from $256.80 million in Q2 2024. Revenue of $1.41 billion, up 5.3% year-over-year, cleared the $1.33 billion consensus by 6.00%, underpinned by portfolio expansion and same-store rent growth of 1.1%. The more closely watched AFFO per share held at $1.05, essentially flat with recent quarters, and the company's 111th consecutive quarterly dividend increase underscored its income consistency. Management struck a confident tone on deployment, raising full-year investment guidance to roughly $5.00 billion from $4.00 billion after putting $1.17 billion to work in Q2 at a 7.2% cash yield, and nudging the low end of AFFO per share guidance up to a range of $4.24 to $4.28.

Key Takeaways

  • Same store rental revenue growth of 1.1% for Q2 2025
  • Portfolio occupancy improved to 98.6% from 98.5% in Q1 2025
  • Rent recapture rate of 103.4% on re-leased properties
  • Initial weighted average cash yield of 7.2% on Q2 investments
  • European investments accounted for 76% of Q2 investment volume
  • Grocery and convenience stores as top contributors to same store rental revenue growth
24/7 Wall St

O YoY Financials

Q2 2025 vs Q2 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 attractive, consistent total operational returns across economic cycles reflects the fundamental strength of our platform, combining the benefits of scale, diversification, and disciplined execution. As demand for durable income solutions accelerates amidst a growing retiree demographic, and as corporations increasingly seek to unlock capital from real estate, we believe our model is well-positioned to thrive.”

— Sumit Roy, Q2 2025 Earnings Press Release