Core Insights - Realty Income Corp. reported $1.41 billion in revenue for the quarter ended June 2025, a year-over-year increase of 5.3% [1] - The company's EPS for the same period was $1.05, compared to $0.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.4 billion, resulting in a surprise of +1.04% [1] - The EPS fell short of the consensus estimate of $1.06, with a surprise of -0.94% [1] Revenue Breakdown - Other Revenue: $72.19 million, surpassing the estimated $59.96 million, reflecting a +31.9% change year-over-year [4] - Rental Revenue (including reimbursable): $1.34 billion, slightly above the estimated $1.33 billion, showing a +4.2% change year-over-year [4] Stock Performance - Realty Income Corp.'s shares returned -0.5% over the past month, while the Zacks S&P 500 composite increased by +0.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Realty Income Corp. reported quarterly funds from operations (FFO) of $1.05 per share, missing the Zacks Consensus Estimate of $1.06 per share, and showing a decrease from $1.06 per share a year ago, resulting in an FFO surprise of -0.94% [1] - The company posted revenues of $1.41 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.04%, compared to year-ago revenues of $1.34 billion, and has topped consensus revenue estimates two times over the last four quarters [2] - The current consensus FFO estimate for the coming quarter is $1.07 on $1.41 billion in revenues, and for the current fiscal year, it is $4.27 on $5.61 billion in revenues [7] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and the sustainability of FFO expectations [3] - The estimate revisions trend for Realty Income Corp. was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The REIT and Equity Trust - Retail industry is currently in the top 35% of Zacks industries, suggesting that the outlook for the industry can significantly impact the stock's performance [8]

Financial Data and Key Metrics Changes - The company sourced $43 billion in volumes during the quarter, matching the total sourced volume for all of 2024 and marking the highest quarterly volume in its history [8][9] - Year-to-date, the company has sourced approximately $66 billion of investment opportunities, on track to surpass the previous high watermark of $95 billion reached in 2022 [9] - The company increased its 2025 investment volume guidance to approximately $5 billion and raised the low end of its AFFO per share guidance to a range of $4.24 to $4.28 [13][16] Business Line Data and Key Metrics Changes - The company invested $1.2 billion globally at a 7.2% weighted average initial cash yield, with a selectivity ratio of less than 3% [8][10] - In Europe, the company accounted for $889 million or 76% of its investment volume at a 7.3% weighted average initial cash yield [9][10] - In the U.S., the company invested $282 million at a 7% weighted average initial cash yield, reflecting a moderation in transaction volumes domestically [10] Market Data and Key Metrics Changes - 57% of the year-to-date volume has been sourced domestically, with the remainder in Europe [9] - The company expanded into its eighth European country, Poland, with transactions involving a leading manufacturer and a grocery store operator [10][24] - The company reported a portfolio occupancy rate of 98.6%, slightly above the historical median of 98.2% from 2010 to 2024 [12] Company Strategy and Development Direction - The company aims to capitalize on two global megatrends: the growing demand for durable income-oriented investment solutions and the rising interest from corporations in asset-light strategies [5][6] - The company is pursuing adjacent growth verticals, including private capital and credit investments, while maintaining a focus on its core real estate net lease vertical [6][7] - The company is actively managing real estate on behalf of third parties, utilizing an open-end fund structure to enhance acquisition investment spreads [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural advantages of the business model, including scale, diversification, and data analytics, to create value through various economic conditions [21] - The company anticipates approximately 75 basis points of potential rent loss in 2025, slightly higher than historical experience, primarily due to certain tenants acquired through public M&A transactions [13][14] - The credit watch list stands at 4.6% of annualized base rent, with management noting strong results from recent bankruptcy resolutions [15] Other Important Information - The company raised $632 million of equity through its ATM at a weighted average stock price of $56.39 per share [16] - The company finished the second quarter with net debt to annualized pro forma adjusted EBITDA of 5.5 times, in line with its leverage target [17] - The company has $5.4 billion of liquidity at quarter end, including $800 million of cash and $4 billion of availability under its credit facility [17] Q&A Session Summary Question: Opportunity in Poland - Management highlighted Poland as a fast-growing market with favorable property laws, leading to successful transactions in the region [23][24] Question: Acquisition Guidance Changes - The low end of acquisition guidance was raised due to conservatism amid uncertainty in U.S. and European policies, while the high end remained unchanged [26][27] Question: Sourcing Volume and Selectivity - Management confirmed that selectivity remains a priority, with a significant amount of sourced transactions not pursued due to insufficient initial yield [29][30] Question: Retail Park Opportunities - Management noted that retail parks in Ireland are a major source of uplift, while the UK market is also showing positive trends [32][34] Question: Tenant Health and Tariffs - Management indicated that the credit watch list accounts for potential impacts from tariffs, with minimal exposure to vulnerable industries [39][41] Question: Competitive Landscape and Supply Dynamics - Management acknowledged increased competition from private capital but emphasized the company's established underwriting maturity as a competitive advantage [51][52] Question: Lease Expirations and Bankruptcy Impact - Management stated that lease expirations were primarily driven by natural flows rather than bankruptcies, with a strong renewal rate among existing clients [97]

Financial Data and Key Metrics Changes - Realty Income invested $1.2 billion in the second quarter at a 7.2% weighted average initial cash yield, with a spread of 181 basis points over the short-term weighted average cost of capital [6] - The company sourced $43 billion in volumes, matching the total sourced volume for all of 2024 and marking the highest quarterly volume in its history [6] - Year-to-date, the company has sourced approximately $66 billion of investment opportunities, on track to surpass the previous high watermark of $95 billion reached in 2022 [7] Business Line Data and Key Metrics Changes - In Europe, Realty Income invested $889 million, accounting for 76% of the investment volume at a 7.3% weighted average initial cash yield [8] - In the U.S., the company invested $282 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunities [9] - The portfolio occupancy rate was 98.6%, slightly above the historical median of 98.2% from 2010 to 2024 [11] Market Data and Key Metrics Changes - 57% of the year-to-date volume has been sourced domestically, with the remainder in Europe [7] - The company expanded into its eighth European country, Poland, with transactions involving a leading manufacturer and a grocery store operator [9][24] Company Strategy and Development Direction - Realty Income aims to capitalize on two global megatrends: the growing demand for durable income-oriented investment solutions and the rising interest from corporations in asset-light strategies [5] - The company is focusing on expanding its private capital and credit investments while maintaining its core real estate net lease vertical [5] - The company is increasing its 2025 investment volume guidance to approximately $5 billion, reflecting confidence in its acquisition pipeline [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural advantages of the business model, including scale, diversification, and data analytics, to create value across various economic conditions [20] - The company anticipates approximately 75 basis points of potential rent loss in 2025, slightly higher than historical experience, primarily due to certain tenants acquired through public M&A transactions [12] - The credit watch list stands at 4.6% of annualized base rent, indicating a proactive approach to managing tenant health and potential risks [13] Other Important Information - Realty Income raised $632 million of equity through its ATM at a weighted average stock price of $56.39 per share [14] - The company has $5.4 billion of liquidity at quarter-end, including $800 million in cash and $4 billion available under its credit facility [16] Q&A Session Summary Question: Expansion into Poland - Management highlighted Poland's strong GDP growth and favorable property laws as key factors for expansion, with initial transactions involving distribution centers and industrial assets [24] Question: Acquisition Guidance Changes - The low end of acquisition guidance was raised due to conservatism amid uncertainty in U.S. and European policies, while the high end remained unchanged [26] Question: Selectivity in Acquisitions - Management confirmed a selective approach, stating that $3.7 billion of transactions were declined due to insufficient initial yield, emphasizing the importance of accretive transactions [30] Question: Investment Activity in Europe - The majority of investments in Europe were in the industrial sector, with a focus on retail parks in Ireland, which are seen as a significant growth opportunity [32][34] Question: Tenant Health and Tariffs - The company has minimal exposure to industries most affected by tariffs, with a diversified client base providing confidence in managing potential risks [40] Question: Competitive Landscape and Supply-Demand Dynamics - Management acknowledged increased competition from private capital sources but emphasized the company's established underwriting maturity as a competitive advantage [52][55] Question: Lease Expirations and Bankruptcy Impact - Lease expirations increased slightly, but management noted that the majority were natural expirations rather than driven by bankruptcies, with a strong renewal rate [100][101]

Financial Performance - Total revenue for the three months ended June 30, 2025, was $1,410,378,000, an increase of 5.3% compared to $1,339,443,000 for the same period in 2024[11] - Net income attributable to the Company for the six months ended June 30, 2025, was $446,734,000, representing a 14.5% increase from $391,675,000 in the same period of 2024[11] - The Company reported a basic earnings per share of $0.22 for the three months ended June 30, 2025, down from $0.30 in the same period of 2024[11] - The Company’s total expenses for the six months ended June 30, 2025, were $2,377,020,000, an increase of 6.5% from $2,232,108,000 in the same period of 2024[11] - Net income for the six months ended June 30, 2025, was $450,473,000, an increase from $394,867,000 in the same period of 2024, representing a growth of approximately 14.1%[17] - Total revenues for the six months ended June 30, 2024, were $2,646.8 million, with a net income of $490.8 million[49] Assets and Liabilities - Total assets increased to $71,424,073,000 as of June 30, 2025, up from $68,835,039,000 at the end of 2024, reflecting a growth of 2.3%[9] - Total liabilities increased to $32,060,738,000 as of June 30, 2025, compared to $29,783,353,000 at the end of 2024, marking an increase of 7.7%[9] - The Company’s total stockholders' equity increased to $39,153,106,000 as of June 30, 2025, from $38,840,738,000 at the end of 2024, reflecting a growth of 0.8%[9] - The company had $962.1 million in accounts receivable, net, as of June 30, 2025, compared to $877.7 million as of December 31, 2024[50] - The company’s total liabilities as of June 30, 2025, were $133,865,000, slightly up from $131,096,000 at the end of 2024[29] Cash Flow and Investments - Total cash provided by operating activities for the first half of 2025 was $1,848,185,000, compared to $1,759,845,000 in 2024, indicating an increase of about 5.0%[17] - Cash and cash equivalents rose to $800,447,000, a significant increase of 79.9% from $444,962,000 at the end of 2024[9] - Investment in real estate for the first half of 2025 was $2,214,524,000, significantly higher than $892,956,000 in the same period of 2024[17] - Cash distributions to common stockholders for the six months ended June 30, 2025, totaled $1,439,274,000, compared to $1,312,714,000 in 2024, reflecting an increase of approximately 9.6%[17] - The company reported a net cash increase of $346,230,000 for the first half of 2025, compared to $180,936,000 in 2024[17] Real Estate and Property Management - The company owned or held interests in 15,606 properties across the U.S., U.K., and seven other European countries, with approximately 346.3 million square feet of leasable space as of June 30, 2025[21] - The company acquired 89 properties totaling 9,030 thousand square feet during the first half of 2025[52] - The properties acquired during the six months ended June 30, 2025, generated total revenue of $33.6 million and net income of $8.6 million[54] - Total real estate acquisitions for the six months ended June 30, 2025, amounted to $1,897.0 million, with a weighted average cash yield of 7.0%[52] - The company recorded provisions for impairment of real estate investments totaling $239.7 million for the six months ended June 30, 2025, compared to $175.4 million for the same period in 2024[103] Debt and Financing - The total principal amount of notes and bonds payable was $25.2 billion as of June 30, 2025[85] - The company entered into new $4.0 billion unsecured multicurrency revolving credit facilities in April 2025, amending a previous $4.25 billion facility[65] - The weighted average interest rate on outstanding borrowings under the RI Credit Facilities was 4.9% as of June 30, 2025, compared to 5.7% under the previous facility[69] - The company was in compliance with all covenants related to its debt obligations as of June 30, 2025, including maintaining total unencumbered assets not less than 150% of outstanding unsecured debt[87] - The company entered into interest rate swaps in January 2024, fixing its per annum interest rate at 4.9% until maturity in January 2026[80] Shareholder Distributions and Equity - The Company declared distributions payable of $248,345,000 as of June 30, 2025, compared to $238,045,000 at the end of 2024, an increase of 5.4%[9] - The company paid total distributions of $1.6015 per common share for the six months ended June 30, 2025, compared to $1.5460 in 2024[117] - The company has made provisions for taxes in applicable international territories, with no provisions for uncertain tax positions recorded in the financial statements[34] - The company has eight variable-to-fixed interest rate swaps on term loans designated as cash flow hedges, with a weighted average strike rate of 3.32%[109] - The company expects to fully settle forward sale agreements outstanding by September 30, 2025, representing $422.8 million in net proceeds at a weighted average forward price of $55.92 per share[119] Miscellaneous - The company incurred $2.8 million and $96.9 million in merger-related transaction costs during the three and six months ended June 30, 2024, respectively[47] - The company completed a merger with Spirit Realty Capital, Inc. on January 23, 2024, with Realty Income as the accounting acquirer[45] - The company recognized a general allowance of $4.5 million for operating lease receivables as of June 30, 2025, compared to no allowance as of December 31, 2024[38] - The company is evaluating the impact of new accounting standards on its financial statement disclosures, effective for fiscal years beginning after December 15, 2024[44] - The company granted 285,242 performance shares during the six months ended June 30, 2025, with a remaining share-based compensation expense of $30.1 million[128]

Company Overview - Realty Income is the 6th largest global REIT with approximately $61 billion in gross real estate value[7] - The company has 15,606 commercial real estate properties[6] - Approximately 34% of rent comes from investment-grade clients[6] - The company's annualized base rent is approximately $5.17 billion[13] Portfolio Diversification - Approximately 90% of the total rent is resilient to economic downturns and/or isolated from e-commerce pressures[9] - Non-Discretionary, Low Price Point and/or Service-Oriented Retail accounts for 73% of the annualized base rent[9] - The company has 1,630 clients across 91 industries[9] Financial Performance and Guidance - The company has a strong dividend track record with over 30 consecutive years of rising dividends and a 4.2% CAGR[10] - The company is increasing its 2025 investment volume guidance to approximately $5.0 billion[22] - The company expects AFFO per share in the range of $4.24 to $4.28 for 2025[22] Investment and Capital Strategy - The company invested $1.2 billion in the second quarter of 2025 at an initial weighted average cash yield of 7.2%[22] - The company sourced $43 billion of volume in the second quarter of 2025, reflecting a 2.7% selectivity rate[22] - The company has sourced ~$66B in volume year-to-date, including $43B in 2Q alone[64]

Exhibit 99.1 CEO Comments REALTY INCOME ANNOUNCES OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 SAN DIEGO, CALIFORNIA, August 6, 2025....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company , today announced operating results for the three and six months ended June 30, 2025. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise. ® For the three months ended June 30, 2025: "Realty Income's ability ...

Group 1 - The article discusses the high-yield stock Realty Income (O) and its qualities that make it a strong investment idea [1] - The author expresses a beneficial long position in several stocks, indicating confidence in their performance [1] Group 2 - The article emphasizes the importance of in-depth research on various income alternatives, including REITs and ETFs [1]

Core Viewpoint - Realty Income is considered a solid investment option for generating reliable monthly income despite the challenges posed by high interest rates and a difficult retail environment [2][13]. Company Overview - Realty Income is a Real Estate Investment Trust (REIT) that owns 15,600 properties leased to over 1,500 clients across nearly 100 industries in all 50 states, the U.K., and six other European countries [4]. - As a REIT, Realty Income is not subject to federal income tax and must distribute 90% of its profits to shareholders, resulting in an attractive dividend yield [5]. Dividend Performance - Realty Income offers a monthly dividend yield of 5.6%, which is appealing for investors seeking passive income [6]. - The company has maintained a record of paying dividends for 661 consecutive months and has raised its dividend for 131 consecutive quarters, showcasing its reliability [7]. Financial Performance - In the first quarter, Realty Income reported earnings of $1.38 billion, an increase from $1.26 billion the previous year, with net income of $249.8 million or $0.28 per share compared to $129.7 million or $0.16 per share in the first quarter of 2024 [12]. Market Challenges - The stock has experienced a decline of 20% over the last three years, although it has gained 7% this year, aligning with major indices [8]. - Higher interest rates have increased borrowing costs, impacting REIT margins, and the rise in Treasury bond yields has led some income investors to seek safer alternatives [10]. Investment Strategy - Realty Income focuses on net lease agreements, where tenants cover expenses like repairs and taxes, contributing to its stability [14]. - The company boasts a high occupancy rate of 98.5% and an average remaining lease term of 9.1 years, indicating a stable tenant base [14]. - The rent recapture rate was 103.9% in the first quarter, suggesting the ability to negotiate higher rents when properties are turned over [14]. Conclusion - While Realty Income may not be a high-growth investment, it offers stability, regular income, and diversification, making it a sensible choice for many investors depending on their portfolio needs [15].

Analyst's Disclosure:I/we have a beneficial long position in the shares of WHR, OLP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. At the recent July Federal Open Market Committee, or "FOMC," meeting, Jerome Powell announced that the Federal Reserve decided to hold inte ...