The REIT boosts full-year AFFO outlook to $4.41-$4.44 per share amid 75 basis points of Fed rate cuts.
Realty Income lifted its 2026 adjusted funds from operations guidance to a range of $4.41 to $4.44 per share, reflecting a 6.6% year-over-year increase in Q1 AFFO to $1.13. The company’s 5.4% yield remains supported by a 73% payout ratio and 670 consecutive monthly dividends.
Portfolio occupancy stood at 98.9% in Q1, with rent recapture at 103.4%, while the Fed’s 75 basis point rate cuts over the past year eased pressure on the REIT’s 15,542+ single-tenant net lease properties. The company maintained dividends through prior crises, including 2008 and 2020.
Management projects roughly 9% total operational return in 2026, reinforcing confidence in the dividend’s sustainability amid a shifting rate environment.