Realty Income's Q3 AFFO Beat Estimates, Revenues Rise Y/Y

Core Insights - Realty Income Corporation (O) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $1.08, exceeding the Zacks Consensus Estimate of $1.07 and up from $1.05 in the prior-year quarter [1][8] - Total revenues reached $1.47 billion, surpassing the Zacks Consensus Estimate of $1.42 billion, reflecting a year-over-year increase of 10.5% [2][8] - The company experienced a rise in interest expenses, which increased by 12.7% year over year to $294.5 million [4] Financial Performance - Same-store rental revenues amounted to $1.16 billion from 14,482 properties, marking a 1.3% increase from the prior-year period [3] - The portfolio occupancy rate was 98.7% as of September 30, 2025, up 10 basis points sequentially, while remaining unchanged year over year [4] - Realty Income achieved a rent recapture rate of 103.5% on re-leased properties during the quarter [4] Investment Activities - The company invested $1.36 billion in 123 properties and properties under development or expansion during the quarter [4][8] - Realty Income sold 140 properties, generating net sales proceeds of $214.8 million and a gain of $49.1 million on the sale of real estate [5] Balance Sheet and Liquidity - As of the end of the third quarter, Realty Income had $3.5 billion in liquidity, including cash and cash equivalents of $417.2 million and $2.2 billion available under its unsecured revolving credit facility [6] - The net debt to annualized pro-forma adjusted EBITDAre ratio stood at 5.4X [6] Guidance - The company revised its 2025 AFFO per share guidance to a range of $4.25-$4.27, with the Zacks Consensus Estimate at $4.27 [7] - Full-year projections include an expected same-store rent growth of approximately 1% and an occupancy rate of around 98.5% [7] - Realty Income increased its full-year investment volume guidance to approximately $5.5 billion from the previous $5 billion [7]