A real estate investment trust that buys freestanding commercial properties—such as stores, gas stations, and pharmacies—and leases them back to tenants on long-term net leases, where those tenants cover most operating costs. Founded in 1969 by Bill and Joan Clark, its very first purchase was a single Taco Bell restaurant in California bought directly from Taco Bell's founder. It pays dividends to shareholders every month, a rarity in its field that earned it the trademarked nickname "The Monthly Dividend Company."
Net income rose 86% as impairments fell, but same-store rent growth was absent from the filing.
rose 86% to $370.5 million, but the filing did not report growth for the quarter. increased 9.7% to $1.55 billion, driven by acquisitions and a 124% rise in interest income from loans, while widened 9.8 points to 25.6% as provisions fell sharply. The company did not disclose the rate of its legacy portfolio, leaving the trajectory of its core rental business unclear.
Key takeaways
rose 86.2% to $370.5 million, driven by an $88.1 million decrease in real estate provisions, which fell to $54.2 million from $142.3 million a year earlier.
increased 9.7% to $1.55 billion, with rental revenue excluding reimbursements up $84.6 million, primarily from $89.5 million in rent from newly acquired properties.
Interest and income on loans and preferred equity rose 124% to $88.5 million, reflecting a $2.8 billion increase in the loan and preferred equity portfolio versus the prior year.
Section summaries
Management's Discussion and Analysis
Realty Income Q2 2026 revenue grew 10% YoY to $1.55B driven by acquisitions and loan income, while net income rose 88% on lower impairments.
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Total increased 10% to $1.55B, with rental revenue (excl. reimbursements) up $84.6M to $1.34B, primarily from $89.5M in rent from newly acquired properties.
widened 9.8 points to 25.6%, recovering from the 15.8% reported in Q2 2025 when elevated charges compressed profitability.
rose 10% to $312.1 million on higher average borrowings of $30.3 billion, with the weighted average interest rate on debt edging up to 3.97%.
The company invested $2.6 billion ($2.1 billion ) at a 7.3% initial cash yield, including a new joint venture with Cloud Capital to invest up to $1.4 billion in hyperscale data centers.
What changed
growth was not reported in the Q2 2026 filing, after recovering to 1.3% in Q3 2025 and holding at 1.3% in Q1 2026 — the absence of the figure leaves the trajectory of the legacy portfolio's unknown.
provisions fell to $54.2 million from $142.3 million in Q2 2025, continuing the decline from the $426.1 million peak in FY 2024 and settling the question of whether elevated write-downs would persist.
Variable-rate debt exposure rose to $2.76 billion, with a hypothetical 1% rate increase now adding $27.6 million in annual interest cost, up from $23.1 million in Q1 2026 and $14.7 million in Q2 2025.
The $2.0 billion program authorized in February 2025 remained unused, with no shares bought back during the quarter.
What to watch
Whether growth is disclosed in Q3 2026 and, if so, whether it holds at or above the 1.3% recovery rate or fades.
trajectory as variable-rate debt exposure reaches $2.76 billion and the weighted average rate on total debt continues to climb from 3.97%.
Whether the $2.0 billion program remains unused through 2026 or the company begins buying back stock, which would affect per-share metrics and liquidity.
Performance and capital deployment in the new Cloud Capital data center joint venture, which introduces an unfamiliar asset class and up to $1.4 billion in investment commitments.
Interest and income on loans and preferred equity surged 124% to $88.5M, reflecting a $2.8B growth in the loan and preferred equity portfolio versus the prior year.
available to common stockholders rose 75% to $344.0M, largely due to an $88.1M decrease in real estate provisions, which fell to $54.2M.
increased 10% to $312.1M on higher average borrowings of $30.3B, while the weighted average interest rate on debt edged up to 3.97%.
The company invested $2.6B ($2.1B pro-rata) at a 7.3% initial cash yield, including a new joint venture with Cloud Capital to invest up to $1.4B in hyperscale data centers.
Liquidity was bolstered by $843.0M in ATM equity issuances and a $1.0B strategic investment from Apollo for a 49% stake in a retail property joint venture.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate and foreign-currency risks are managed primarily through fixed-rate debt and natural hedging; a 1% rate rise would increase annual interest costs by $27.6M.
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Interest-rate exposure arises mainly from facilities, commercial paper, term loans, mortgages, and long-term notes and bonds used for liquidity and real estate investment.
The company manages interest-rate risk by issuing predominantly fixed-rate and may use swaps, swaptions, locks, and caps, never for speculation.
As of June 30, 2026, total consolidated debt principal was $30.99B, with a weighted-average rate of 3.89% on fixed-rate debt and 3.51% on variable-rate debt.
A hypothetical 1% increase in interest rates on variable-rate debt would raise annual interest costs by approximately $27.6 million.
Foreign-currency risk from international investments and earnings is primarily hedged by borrowing in the same currencies, creating a , supplemented by currency swaps and forward contracts.