Realty Income Corp. (O) Up 2.4% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Realty Income Corp. has shown a positive performance with a 2.4% increase in shares over the past month, outperforming the S&P 500, leading to questions about the sustainability of this trend ahead of the next earnings release [1][2]. Financial Performance - In Q3 2025, Realty Income reported 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 same quarter last year [3]. - Total revenues reached $1.47 billion, surpassing the Zacks Consensus Estimate of $1.42 billion, reflecting a year-over-year growth of 10.5% [4]. - Same-store rental revenues amounted to $1.16 billion from 14,482 properties, marking a 1.3% increase from the prior year [5]. Operational Highlights - The portfolio occupancy rate was 98.7% as of September 30, 2025, showing a slight increase of 10 basis points sequentially, while remaining stable year over year [5]. - Realty Income achieved a rent recapture rate of 103.5% on re-leased properties during the quarter [5]. - The company invested $1.36 billion in 123 properties and properties under development or expansion, while selling 140 properties for net proceeds of $214.8 million [6]. Balance Sheet and Liquidity - As of the end of Q3 2025, Realty Income had $3.5 billion in liquidity, including $417.2 million in cash and cash equivalents, $864.2 million in unsettled At-The-Market forward equity, and $2.2 billion available under its unsecured revolving credit facility [7]. Guidance and Future Outlook - Management revised its 2025 AFFO per share guidance to a range of $4.25-$4.27, slightly down from the previous range of $4.24-$4.28, with expectations of same-store rent growth of approximately 1% and occupancy around 98.5% [8]. - The full-year investment volume guidance was increased to approximately $5.5 billion from the prior estimate of $5 billion [8]. Market Position and Comparisons - Realty Income Corp. holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [12]. - In comparison, Federal Realty Investment Trust, a peer in the same industry, reported revenues of $322.25 million for the last quarter, reflecting a year-over-year increase of 6.1% [14].