Realty Income Corp.

Strong operating momentum + higher AFFO outlook (forecast raised) - Q2 AFFO per share: grew 3.8% to $1.09. - Year-to-date AFFO per share: $2.22, up 5.2% (noted as an acceleration vs the same period in 2025). - Full-year 2026 AFFO guidance increased: midpoint raised by $0.02 to $4.44–$4.45 (≈~4% growth at the midpoint).

Investment growth remains robust; guidance increased (opportunity set across geographies/asset types) - Global Q2 investments: ~$2.6B total ($2.1B pro rata), at an initial weighted avg cash yield of 7.3%. - US dominated Q2: ~$1.7B pro rata at 7.4% weighted avg yield; industrial ~ $800M (≈75% of US real estate). - Industrial fundamentals improving: net absorption accelerated, vacancy down, and development activity improved. - Europe: closed ~$400M at ~7.0% yield; management says activity is improving and they remain constructive. - Full-year acquisition volume guidance increased: from $9.5B to $10B total (implies about $9B on Realty Income’s balance sheet per CEO’s response).

Key capital vehicles driving future growth (data centers + US Core Plus fund) - US Core Plus fund: fully deployed remaining cornerstone commitments; total gross asset value ~$3B. - Fund acquisitions in Q2 generated ~6% weighted avg cash yield (intentionally lower on initial yield). - Same-store revenue growth: 2.9% YTD; emphasis that management fee stream helps drive day-1 accretion to Realty Income shareholders. - Hyperscale data center JV (surprising/important upside option): - Announced $6B programmatic hyperscale data center JV with Cloud Capital; Realty Income expects to invest up to $1.4B for 45% equity. - Includes 3 Northern Virginia assets (<400 MW total); one stabilized asset closed last week; expects to acquire 2 development assets upon stabilization. - Management frames data centers as an early/multiyear buildout driven by AI/cloud/digitization, with demand exceeding supply in key markets. - Tenant diversity plan: the new JV uses varied tenants (not just the earlier concentration).