Realty Income's strong performance in the second quarter amid market instability reinforced its reputation as a top-tier dividend stock. Despite tariffs and interest rate fluctuations, the company produced steady results, demonstrating why consistency in both returns and dividends makes it a must-own investment for those seeking both growth and stability. Realty Income is a very reliable dividend stock. Realty Income (O 0.32%) stands out for its unmatched consistency as a dividend stock. The real estate inv ...

Even after a decline in net earnings per share (EPS), shares of Realty Income Corp. NYSE: O are rallying by roughly a point and a half in the pre-market hours the day after they released their quarterly financials. This can be confusing for investors, as some companies perform well on good earnings or rally on bad earnings. Realty Income TodayORealty Income$56.45 -0.46 (-0.82%) 52-Week Range$50.71▼$64.88Dividend Yield5.72%P/E Ratio51.34Price Target$61.36Add to WatchlistThe reason is that it isn’t always EP ...

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]

Realty Income Corp. (O) came out with quarterly funds from operations (FFO) of $1.05 per share, missing the Zacks Consensus Estimate of $1.06 per share. This compares to FFO of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -0.94%. A quarter ago, it was expected that this real estate investment trust would post FFO of $1.06 per share when it actually produced FFO of $1.06, delivering no surprise. Over the last four quarters ...

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025, or ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-13374 REALTY INCOME CORPORATION (Exact name of registrant as specified in its charter) Maryland 33-0580106 (State or Other Jurisdiction of Incorporation or Org ...

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]