San Diego, California-based Realty Income Corporation (O) is a leading REIT that owns and manages a large portfolio of single-tenant, net-lease commercial properties. With a market cap of $56.5 billion, Realty Income focuses on acquiring single-tenant retail locations, leased to regional and national chains, and under long-term net lease agreements.
The REIT giant is expected to announce its fiscal first-quarter earnings for 2026 on Monday, May 4, after the market closes. Ahead of the event, analysts expect O to report an FFO of $1.10 per share on a diluted basis, up 3.8% from $1.06 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the current year, analysts expect O to report FFO per share of $4.45, up 4% from $4.28 in fiscal 2025. Its FFO is expected to rise 3.2% year over year to $4.59 per share in fiscal 2027.
O stock has surged 17.7% over the past year, underperforming the S&P 500 Index’s ($SPX) 29.4% gains but outpacing the State Street Real Estate Select Sector SPDR Fund’s (XLRE) 11.6% gains over the same time frame.
On Mar. 30, Realty Income announced an $800 million offering of senior unsecured notes due 2033 with a 4.750% coupon and a yield of about 5.05%. Alongside the issuance, the company executed a $500 million cross-currency swap to effectively convert proceeds into euros, lowering its blended yield to roughly 4.44%. The proceeds will be used for general corporate purposes, including debt repayment, property acquisitions, and portfolio expansion. Its shares rose marginally after the announcement.
Analysts’ consensus opinion on O stock is cautious, with a “Hold” rating overall. Out of 24 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 17 give a “Hold,” and one recommends a “Strong Sell.” O’s average analyst price target is $67.42, indicating a potential upside of 5.8% from the current levels.
