Core Insights - Dividend stocks can significantly enhance long-term capital appreciation, with 85% of the S&P 500's cumulative total return from 1960 to 2023 attributed to reinvested dividends [1] Group 1: Importance of Quality in Dividend Stocks - Quality may be more important than yield when selecting dividend stocks, as high-yield stocks often come with increased risk [2] - Investors are encouraged to focus on stocks with a strong track record of earnings and dividend growth consistency rather than just high yields [2] Group 2: Recommended Dividend Stocks - Five high-quality dividend growth stocks recommended for long-term holding include Lowe's, NextEra Energy, Realty Income, Philip Morris International, and United Parcel Service [3] Group 3: Lowe's Companies - Lowe's has raised its dividend for 62 consecutive years, with a current forward dividend yield of 2% [4] - The quarterly payout has increased from $0.28 to $1.20 per share since 2015, representing over 15% annualized growth [6] - The current dividend payout ratio is around 38%, indicating potential for continued aggressive dividend increases [7] Group 4: NextEra Energy - NextEra Energy has raised its dividend for nearly 30 years, currently offering a 2.7% dividend yield [9] - The company's quarterly dividend has nearly tripled since 2015, despite a post-pandemic slump in renewable energy stocks [10] - A recent deal with Google to supply electricity for data centers may bolster long-term growth prospects [10] Group 5: Realty Income - Realty Income has achieved 112 consecutive quarterly dividend increases, equating to 28 years of growth [11] - The stock offers a forward dividend yield of 5.5% and pays dividends monthly, appealing to income-focused investors [12] - Since going public in 1994, Realty Income has generated compound annual total returns of 13.5% and annualized dividend growth of 4.2% [13] Group 6: Philip Morris International - Philip Morris is transitioning towards smoke-free products, which may enhance its future prospects [15] - The company has raised its dividend annually since its 2008 spinoff, currently offering a forward dividend yield of 3.8% [17] Group 7: United Parcel Service - UPS has a forward dividend yield of nearly 7%, but this may indicate dividend uncertainty [18] - The company has a long history of dividend increases, suggesting a commitment to maintaining its dividend growth track record [19] - Cost-saving measures through downsizing and automation could lead to $3.5 billion in annual savings, supporting future dividend security [20]

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Financial Data and Key Metrics Changes - Realty Income invested $1.4 billion in Q3 2025 at a 7.7% weighted average initial cash yield, bringing year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 excluding the Spirit merger [6][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][14] - The net debt to annualized pro forma EBITDA ratio was 5.4x, with a fixed charge coverage ratio of 4.6x, and $3.5 billion of liquidity at the end of the quarter [13] Business Line Data and Key Metrics Changes - The company sourced $31 billion in volume during the quarter, achieving a selectivity ratio of 4.4%, with total year-to-date sourcing volume reaching $97 billion, surpassing the previous high watermark of $95 billion in 2022 [6][11] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - European investments accounted for approximately $1 billion, or 72% of total investment volume, with an 8% weighted average initial cash yield, indicating a favorable risk-adjusted return compared to the U.S. market [7][11] - U.S. investments totaled $380 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunities [8][11] Company Strategy and Development Direction - Realty Income aims to capitalize on the increasing investor appetite for consistent, long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [4][5] - The company is focusing on operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, leading to a strategic shift towards Europe for better risk-adjusted returns [19][20] - The company remains optimistic about its acquisition pipeline and the ability to generate predictable cash flows, despite potential credit losses [11][14] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting proactive asset management strategies [10][39] - The company has approximately $1 billion of unsettled forward equity, which is expected to fund external equity capital needs for 2025 [14] Q&A Session Summary Question: Is the competition in the U.S. market structural? - Management confirmed that there is indeed more competition in the U.S. market compared to Europe, which is influencing their investment strategy [17][19] Question: Can you provide details on the leasing process for vacant assets? - Management explained that the decision to sell vacant assets is based on maximizing economic returns, and they are indifferent to whether they sell vacant or occupied assets [22][24] Question: How does the predictive analytics platform impact G&A costs? - Management indicated that the predictive analytics tool is expected to improve decision-making and reduce G&A costs over time by enhancing operational efficiencies [27][30] Question: What is the current status of the watch list and bad debt? - The watch list remains at 4.6% of annualized base rent, with bad debt expense tracking at 75 basis points, indicating manageable credit risk [76] Question: What drove the change in investment-grade client representation? - The decrease in investment-grade client representation was attributed to Dollar Tree's sale of Family Dollar, which is now a private company [50][51] Question: What are the expectations for same-store revenue growth? - Management projected a conservative guidance of 1% for same-store revenue growth in 2025, reflecting potential moderation from Q3's performance [48][49] Question: How does the company view its balance sheet and future AFFO growth? - Management expressed confidence in refinancing opportunities and the potential for lower rates, which could support future AFFO growth [62][63] Question: How does the company approach capital allocation? - Management emphasized a selective investment strategy, balancing free cash flow utilization with equity capital raising to ensure accretive investments [78][83]

Financial Data and Key Metrics Changes - Realty Income invested $1.4 billion in Q3 2025 at a 7.7% weighted average initial cash yield, bringing the year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 excluding the Spirit merger [6][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][14] Business Line Data and Key Metrics Changes - The company sourced $31 billion in volume during the quarter, achieving a selectivity ratio of 4.4%, with total year-to-date sourcing volume reaching $97 billion, surpassing the previous high watermark of $95 billion in 2022 [6][11] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - In Europe, Realty Income invested approximately $1 billion, accounting for 72% of the investment volume at an 8% weighted average initial cash yield, driven by a fragmented competitive landscape and a larger total addressable market compared to the U.S. [7][8] - In the U.S., the company invested $380 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunity [8][9] Company Strategy and Development Direction - Realty Income's strategy focuses on capitalizing on the increasing investor appetite for consistent, long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [4][5] - The company aims to enhance its liquidity position through the launch of a perpetual life fund, which is expected to support growth objectives [5][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, with more competitors entering the net lease market, prompting a strategic shift towards Europe for better risk-adjusted returns [19][20] - The company remains committed to operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [15][19] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting proactive asset management strategies [10][39] - The company reported a net debt to annualized pro forma EBITDA of 5.4 times and a fixed charge coverage ratio of 4.6 times, with $3.5 billion in liquidity [13][14] Q&A Session Summary Question: Competition in the U.S. vs. Europe - Management acknowledged increased competition in the U.S. market, leading to a strategic focus on Europe for better value-adjusted returns [19][20] Question: Dispositions of Vacant Assets - Management explained that the decision to sell vacant assets was part of a strategy to maximize economic returns, with a mix of asset types sold [22][25] Question: Predictive Analytics and G&A Reduction - Management discussed the use of predictive analytics to improve decision-making and potentially reduce G&A costs over time [27][30] Question: Lease Termination Income - Management indicated that the lease termination income was primarily from one tenant and that proactive asset management would lead to more regular occurrences of such income [39][40] Question: Investment Guidance Increase - Management clarified that the increase in investment guidance includes both core portfolio and private fund investments, reflecting a strategic approach to capital allocation [87]

Financial Data and Key Metrics Changes - Realty Income reported a total investment volume of $1.4 billion in Q3 2025, with a weighted average initial cash yield of 7.7%, bringing the year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 [5][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][12] - The net debt to annualized pro forma EBITDA ratio stood at 5.4 times, with a fixed charge coverage ratio of 4.6 times, and liquidity of $3.5 billion [13] Business Line Data and Key Metrics Changes - The company invested $1 billion in Europe, accounting for 72% of total investment volume, with an 8% weighted average initial cash yield, while U.S. investments totaled $380 million at a 7% yield [6][8] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - Realty Income's European investments are seen as more favorable on a risk-adjusted basis compared to the U.S. market, which has become increasingly competitive [6][19] - The company has expanded its European gross asset value to nearly $16 billion, representing approximately 18% of total annualized base rent [7] Company Strategy and Development Direction - The company aims to capitalize on the growing investor appetite for long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [3][4] - Realty Income is focusing on operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, leading to a strategic shift towards European investments, which are perceived to offer better risk-adjusted returns [19][59] - The company is optimistic about its ability to maintain strong performance through various economic conditions, supported by its predictive analytics tools and proactive asset management strategies [8][28] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting a proactive approach to asset management [10][36] - The company has approximately $1 billion of unsettled forward equity, which is expected to fund its external equity capital needs for 2025 [15] Q&A Session Summary Question: What is the outlook for competition in the U.S. market? - Management acknowledged increased competition in the U.S. market, particularly from private equity firms, which has influenced their investment strategy towards Europe [19][41] Question: Can you provide details on the recent dispositions of vacant assets? - The company indicated that the strategy of selling vacant assets was driven by maximizing economic returns, with a mix of asset types sold, including casual dining and drug stores [24][25] Question: How does the predictive analytics platform impact G&A costs? - Management explained that the predictive analytics tool enhances decision-making and operational efficiency, potentially leading to reduced G&A costs over time [26][28] Question: What is the impact of lease termination income on future revenue? - Management clarified that lease termination income is a one-time event and does not directly affect same-store revenue calculations, which are expected to remain stable [35][36] Question: How does the company view its balance sheet and future AFFO growth? - The company expressed confidence in its ability to refinance existing debt at lower rates, which could support future AFFO growth, while maintaining a disciplined approach to leverage [55][56]

Financial Performance - Total revenue for Q3 2025 reached $1,470,552, an increase of 10.5% from $1,330,915 in Q3 2024[11] - Net income attributable to the Company for Q3 2025 was $315,771, up 17% from $269,485 in Q3 2024[11] - Rental revenue, including reimbursements, was $1,386,502 for Q3 2025, a rise of 9.1% from $1,271,153 in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $768,147, compared to $665,991 for the same period in 2024, representing an increase of approximately 15.4%[16] - Total cash provided by operating activities for the nine months ended September 30, 2025, was $2,791,320, up from $2,601,313 in 2024, indicating a growth of about 7.3%[16] - Cash distributions to common stockholders for the nine months ended September 30, 2025, amounted to $2,177,133, compared to $1,999,858 in 2024, reflecting an increase of approximately 8.9%[16] Assets and Liabilities - Total assets increased to $71,278,982 as of September 30, 2025, compared to $68,835,039 at the end of 2024, reflecting a growth of 3.9%[9] - Total liabilities increased to $32,018,761 as of September 30, 2025, compared to $29,783,353 at the end of 2024, marking an increase of 7.4%[9] - The company reported a total stockholders' equity of $39,050,597 as of September 30, 2025, compared to $38,840,738 at the end of 2024, indicating a growth of 0.5%[9] - Total assets as of September 30, 2025, were $3,595,766, up from $3,461,843 as of December 31, 2024, representing an increase of approximately 3.9%[28] - As of September 30, 2025, total liabilities were $132,815, slightly up from $131,096 as of December 31, 2024, showing a marginal increase[28] Investment Activities - Investment in real estate for the nine months ended September 30, 2025, was $3,086,544, significantly higher than $1,611,794 in 2024, indicating a year-over-year increase of about 91.5%[16] - The company reported a net cash used in investing activities of $3,549,551 for the nine months ended September 30, 2025, compared to $1,571,224 in 2024, showing a substantial increase in investment activity[16] - Total real estate acquisitions for the nine months ended September 30, 2025, amounted to $2,727.3 million, with an initial weighted average cash yield of 7.1%[52] - The properties acquired during the same period generated total revenue of $78.6 million and net income of $21.1 million[54] - The company sold 268 properties in the nine months ended September 30, 2025, generating net sales proceeds of $424.2 million and a gain on sales of $110.2 million[60] Debt and Financing - The company entered into new $4.0 billion unsecured multicurrency revolving credit facilities in April 2025, replacing a previous $4.25 billion facility, enhancing liquidity options[65] - As of September 30, 2025, the company had a borrowing capacity of $2.7 billion available on its RI Credit Facilities, with an outstanding balance of $1.3 billion[68] - The weighted average interest rate on outstanding borrowings under the RI Credit Facilities was 4.6% as of September 30, 2025, down from 5.4% under the previous facility[69] - The company has a USD-denominated unsecured commercial paper program with a maximum aggregate amount of $1.5 billion, and as of September 30, 2025, the outstanding balance was $469.4 million[76][78] - The total principal amount of notes and bonds payable was $25,087.2 million, an increase from $22,938.7 million as of December 31, 2024, reflecting a growth of approximately 9.4%[88] Shareholder Information - Monthly distributions to common stockholders totaled $2.4085 per share for the nine months ended September 30, 2025, compared to $2.3350 in 2024[117] - The company issued 5.6 million shares under the ATM program during the three months ended September 30, 2025, generating net proceeds of $314.8 million[119] - The gross proceeds from the ATM program for the nine months ended September 30, 2025, were $1.5804 billion, compared to $815.3 million in 2024[119] - The company granted 324,459 shares of restricted stock and restricted stock units during the nine months ended September 30, 2025[124] - As of September 30, 2025, the company had 10.6 million shares remaining for future issuance under the Dividend Reinvestment and Stock Purchase Plan (DRSPP)[120] Merger and Acquisition Activities - The merger with Spirit Realty Capital, Inc. was completed on January 23, 2024, with the acquisition accounted for using the acquisition method of accounting[45] - The company incurred merger-related transaction costs of $13.3 million and $14.0 million for the three and nine months ended September 30, 2025, respectively, compared to $8.6 million and $105.5 million for the same periods in 2024[41] - The company recognized a general allowance of $4.8 million for operating lease receivables as of September 30, 2025, compared to no general allowance as of December 31, 2024[37] Tax and Regulatory Compliance - The company has made provisions for taxes in applicable international territories, with no federal income taxes recorded for U.S. income, except for taxable REIT subsidiaries[30] - Deferred income tax liabilities were reported at $8.3 million as of September 30, 2025, up from $3.5 million as of December 31, 2024[31] - The company is currently evaluating the impact of new accounting standards, including ASU 2023-09 on income taxes, which will enhance disclosures but is not expected to materially affect financial results[44] Derivatives and Risk Management - The company recorded total provisions for impairment of real estate investments of $315.1 million for the nine months ended September 30, 2025[104] - The total notional amount of derivatives not designated as hedging instruments was $3,384.5 million, with a fair value asset of $25.2 million[110] - The company has entered into foreign currency forward contracts to hedge foreign currency risk associated with interest payments on intercompany loans denominated in GBP and EUR[106]

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Quarterly Investor Presentation REAL ESTATE PARTNER TO THE WORLD'S LEADING COMPANIES® November 2025 Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this presentation, the words "estimated," "anticipated," "expect," "believe," "intend," "continue," "sh ...

COMPANY HIGHLIGHTS: Exhibit 99.1 For the three months ended September 30, 2025: REALTY INCOME ANNOUNCES OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 SAN DIEGO, CALIFORNIA, November 3, 2025....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company , today announced operating results for the three and nine months ended September 30, 2025. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise. ...

Core Insights - Realty Income Corporation reported strong operating results for the three and nine months ended September 30, 2025, highlighting a durable and diversified income engine [3][4] - The company achieved a rent recapture rate of 103.5% on re-leased properties, indicating effective asset management [3][11] - The updated guidance for 2025 includes an AFFO per share of $4.25 - $4.27 and an investment volume of approximately $5.5 billion [3][24] Financial Performance - For the three months ended September 30, 2025, total revenue was $1,470.6 million, up from $1,330.9 million in the same period of 2024, representing an increase of 10.5% [4][33] - Net income available to common stockholders for the same period was $315.8 million, or $0.35 per share, compared to $261.8 million, or $0.30 per share, in 2024 [4][5] - Funds from Operations (FFO) for the three months was $981.1 million, with FFO per share at $1.07, up from $0.98 in the prior year [4][5] Investment Activity - The company invested $1.4 billion during the quarter at an initial weighted average cash yield of 7.7% [5][13] - Realty Income's international investments accounted for approximately $1.0 billion, with $380.0 million invested domestically during the quarter [3][4] - As of September 30, 2025, the company owned or held interests in 15,542 properties leased to 1,647 clients across 92 industries [9][31] Dividend Information - Realty Income announced its 112th consecutive quarterly dividend increase, with an annualized dividend amount of $3.234 per share as of September 30, 2025 [8][31] - The monthly dividend paid per share increased by 2.3% to $0.807 compared to $0.789 for the same period in 2024, representing 74.7% of diluted AFFO per share [8][31] Liquidity and Capital Markets - As of September 30, 2025, Realty Income had $3.5 billion in liquidity, including cash and cash equivalents of $417.2 million and $2.2 billion available under revolving credit facilities [21][22] - In October 2025, the company issued $400.0 million of 3.950% senior unsecured notes due 2029 and $400.0 million of 4.500% senior unsecured notes due 2033 [2][23] Guidance and Future Outlook - The company revised its 2025 guidance, projecting net income per share of $1.27 - $1.29 and AFFO per share of $4.25 - $4.27 [24][25] - Realty Income expects same-store rent growth of approximately 1.0% and occupancy to remain over 98% [24][25]