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Financial Data and Key Metrics Changes - Realty Income invested $1.4 billion in Q3 2025 at a 7.7% weighted average initial cash yield, bringing year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 excluding the Spirit merger [6][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][14] - The net debt to annualized pro forma EBITDA ratio was 5.4x, with a fixed charge coverage ratio of 4.6x, and $3.5 billion of liquidity at the end of the quarter [13] Business Line Data and Key Metrics Changes - The company sourced $31 billion in volume during the quarter, achieving a selectivity ratio of 4.4%, with total year-to-date sourcing volume reaching $97 billion, surpassing the previous high watermark of $95 billion in 2022 [6][11] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - European investments accounted for approximately $1 billion, or 72% of total investment volume, with an 8% weighted average initial cash yield, indicating a favorable risk-adjusted return compared to the U.S. market [7][11] - U.S. investments totaled $380 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunities [8][11] Company Strategy and Development Direction - Realty Income aims to capitalize on the increasing investor appetite for consistent, long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [4][5] - The company is focusing on operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, leading to a strategic shift towards Europe for better risk-adjusted returns [19][20] - The company remains optimistic about its acquisition pipeline and the ability to generate predictable cash flows, despite potential credit losses [11][14] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting proactive asset management strategies [10][39] - The company has approximately $1 billion of unsettled forward equity, which is expected to fund external equity capital needs for 2025 [14] Q&A Session Summary Question: Is the competition in the U.S. market structural? - Management confirmed that there is indeed more competition in the U.S. market compared to Europe, which is influencing their investment strategy [17][19] Question: Can you provide details on the leasing process for vacant assets? - Management explained that the decision to sell vacant assets is based on maximizing economic returns, and they are indifferent to whether they sell vacant or occupied assets [22][24] Question: How does the predictive analytics platform impact G&A costs? - Management indicated that the predictive analytics tool is expected to improve decision-making and reduce G&A costs over time by enhancing operational efficiencies [27][30] Question: What is the current status of the watch list and bad debt? - The watch list remains at 4.6% of annualized base rent, with bad debt expense tracking at 75 basis points, indicating manageable credit risk [76] Question: What drove the change in investment-grade client representation? - The decrease in investment-grade client representation was attributed to Dollar Tree's sale of Family Dollar, which is now a private company [50][51] Question: What are the expectations for same-store revenue growth? - Management projected a conservative guidance of 1% for same-store revenue growth in 2025, reflecting potential moderation from Q3's performance [48][49] Question: How does the company view its balance sheet and future AFFO growth? - Management expressed confidence in refinancing opportunities and the potential for lower rates, which could support future AFFO growth [62][63] Question: How does the company approach capital allocation? - Management emphasized a selective investment strategy, balancing free cash flow utilization with equity capital raising to ensure accretive investments [78][83]

Financial Data and Key Metrics Changes - Realty Income invested $1.4 billion in Q3 2025 at a 7.7% weighted average initial cash yield, bringing the year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 excluding the Spirit merger [6][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][14] Business Line Data and Key Metrics Changes - The company sourced $31 billion in volume during the quarter, achieving a selectivity ratio of 4.4%, with total year-to-date sourcing volume reaching $97 billion, surpassing the previous high watermark of $95 billion in 2022 [6][11] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - In Europe, Realty Income invested approximately $1 billion, accounting for 72% of the investment volume at an 8% weighted average initial cash yield, driven by a fragmented competitive landscape and a larger total addressable market compared to the U.S. [7][8] - In the U.S., the company invested $380 million at a 7% weighted average initial cash yield, reflecting a selective approach rather than a lack of opportunity [8][9] Company Strategy and Development Direction - Realty Income's strategy focuses on capitalizing on the increasing investor appetite for consistent, long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [4][5] - The company aims to enhance its liquidity position through the launch of a perpetual life fund, which is expected to support growth objectives [5][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, with more competitors entering the net lease market, prompting a strategic shift towards Europe for better risk-adjusted returns [19][20] - The company remains committed to operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [15][19] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting proactive asset management strategies [10][39] - The company reported a net debt to annualized pro forma EBITDA of 5.4 times and a fixed charge coverage ratio of 4.6 times, with $3.5 billion in liquidity [13][14] Q&A Session Summary Question: Competition in the U.S. vs. Europe - Management acknowledged increased competition in the U.S. market, leading to a strategic focus on Europe for better value-adjusted returns [19][20] Question: Dispositions of Vacant Assets - Management explained that the decision to sell vacant assets was part of a strategy to maximize economic returns, with a mix of asset types sold [22][25] Question: Predictive Analytics and G&A Reduction - Management discussed the use of predictive analytics to improve decision-making and potentially reduce G&A costs over time [27][30] Question: Lease Termination Income - Management indicated that the lease termination income was primarily from one tenant and that proactive asset management would lead to more regular occurrences of such income [39][40] Question: Investment Guidance Increase - Management clarified that the increase in investment guidance includes both core portfolio and private fund investments, reflecting a strategic approach to capital allocation [87]

Financial Data and Key Metrics Changes - Realty Income reported a total investment volume of $1.4 billion in Q3 2025, with a weighted average initial cash yield of 7.7%, bringing the year-to-date investment volume to over $3.9 billion, surpassing the total investment volume of 2024 [5][11] - The company increased its 2025 investment volume guidance from $5 billion to approximately $5.5 billion and raised the low end of its AFFO per share guidance to a range of $4.25-$4.27 [11][12] - The net debt to annualized pro forma EBITDA ratio stood at 5.4 times, with a fixed charge coverage ratio of 4.6 times, and liquidity of $3.5 billion [13] Business Line Data and Key Metrics Changes - The company invested $1 billion in Europe, accounting for 72% of total investment volume, with an 8% weighted average initial cash yield, while U.S. investments totaled $380 million at a 7% yield [6][8] - The rent recapture rate across 284 leases was 103.5%, generating $71 million in new cash rents, with 87% of leasing activity from renewals by existing clients [9][10] Market Data and Key Metrics Changes - Realty Income's European investments are seen as more favorable on a risk-adjusted basis compared to the U.S. market, which has become increasingly competitive [6][19] - The company has expanded its European gross asset value to nearly $16 billion, representing approximately 18% of total annualized base rent [7] Company Strategy and Development Direction - The company aims to capitalize on the growing investor appetite for long-duration income, leveraging its scale and diversification across over 15,500 properties and 92 industries [3][4] - Realty Income is focusing on operational consistency and disciplined investment principles, with a long-term objective of delivering resilient and growing income through a diversified net lease platform [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive landscape in the U.S. has intensified, leading to a strategic shift towards European investments, which are perceived to offer better risk-adjusted returns [19][59] - The company is optimistic about its ability to maintain strong performance through various economic conditions, supported by its predictive analytics tools and proactive asset management strategies [8][28] Other Important Information - Realty Income recognized $27.3 million in lease termination income during the quarter, reflecting a proactive approach to asset management [10][36] - The company has approximately $1 billion of unsettled forward equity, which is expected to fund its external equity capital needs for 2025 [15] Q&A Session Summary Question: What is the outlook for competition in the U.S. market? - Management acknowledged increased competition in the U.S. market, particularly from private equity firms, which has influenced their investment strategy towards Europe [19][41] Question: Can you provide details on the recent dispositions of vacant assets? - The company indicated that the strategy of selling vacant assets was driven by maximizing economic returns, with a mix of asset types sold, including casual dining and drug stores [24][25] Question: How does the predictive analytics platform impact G&A costs? - Management explained that the predictive analytics tool enhances decision-making and operational efficiency, potentially leading to reduced G&A costs over time [26][28] Question: What is the impact of lease termination income on future revenue? - Management clarified that lease termination income is a one-time event and does not directly affect same-store revenue calculations, which are expected to remain stable [35][36] Question: How does the company view its balance sheet and future AFFO growth? - The company expressed confidence in its ability to refinance existing debt at lower rates, which could support future AFFO growth, while maintaining a disciplined approach to leverage [55][56]

Financial Performance - Total revenue for Q3 2025 reached $1,470,552, an increase of 10.5% from $1,330,915 in Q3 2024[11] - Net income attributable to the Company for Q3 2025 was $315,771, up 17% from $269,485 in Q3 2024[11] - Rental revenue, including reimbursements, was $1,386,502 for Q3 2025, a rise of 9.1% from $1,271,153 in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $768,147, compared to $665,991 for the same period in 2024, representing an increase of approximately 15.4%[16] - Total cash provided by operating activities for the nine months ended September 30, 2025, was $2,791,320, up from $2,601,313 in 2024, indicating a growth of about 7.3%[16] - Cash distributions to common stockholders for the nine months ended September 30, 2025, amounted to $2,177,133, compared to $1,999,858 in 2024, reflecting an increase of approximately 8.9%[16] Assets and Liabilities - Total assets increased to $71,278,982 as of September 30, 2025, compared to $68,835,039 at the end of 2024, reflecting a growth of 3.9%[9] - Total liabilities increased to $32,018,761 as of September 30, 2025, compared to $29,783,353 at the end of 2024, marking an increase of 7.4%[9] - The company reported a total stockholders' equity of $39,050,597 as of September 30, 2025, compared to $38,840,738 at the end of 2024, indicating a growth of 0.5%[9] - Total assets as of September 30, 2025, were $3,595,766, up from $3,461,843 as of December 31, 2024, representing an increase of approximately 3.9%[28] - As of September 30, 2025, total liabilities were $132,815, slightly up from $131,096 as of December 31, 2024, showing a marginal increase[28] Investment Activities - Investment in real estate for the nine months ended September 30, 2025, was $3,086,544, significantly higher than $1,611,794 in 2024, indicating a year-over-year increase of about 91.5%[16] - The company reported a net cash used in investing activities of $3,549,551 for the nine months ended September 30, 2025, compared to $1,571,224 in 2024, showing a substantial increase in investment activity[16] - Total real estate acquisitions for the nine months ended September 30, 2025, amounted to $2,727.3 million, with an initial weighted average cash yield of 7.1%[52] - The properties acquired during the same period generated total revenue of $78.6 million and net income of $21.1 million[54] - The company sold 268 properties in the nine months ended September 30, 2025, generating net sales proceeds of $424.2 million and a gain on sales of $110.2 million[60] Debt and Financing - The company entered into new $4.0 billion unsecured multicurrency revolving credit facilities in April 2025, replacing a previous $4.25 billion facility, enhancing liquidity options[65] - As of September 30, 2025, the company had a borrowing capacity of $2.7 billion available on its RI Credit Facilities, with an outstanding balance of $1.3 billion[68] - The weighted average interest rate on outstanding borrowings under the RI Credit Facilities was 4.6% as of September 30, 2025, down from 5.4% under the previous facility[69] - The company has a USD-denominated unsecured commercial paper program with a maximum aggregate amount of $1.5 billion, and as of September 30, 2025, the outstanding balance was $469.4 million[76][78] - The total principal amount of notes and bonds payable was $25,087.2 million, an increase from $22,938.7 million as of December 31, 2024, reflecting a growth of approximately 9.4%[88] Shareholder Information - Monthly distributions to common stockholders totaled $2.4085 per share for the nine months ended September 30, 2025, compared to $2.3350 in 2024[117] - The company issued 5.6 million shares under the ATM program during the three months ended September 30, 2025, generating net proceeds of $314.8 million[119] - The gross proceeds from the ATM program for the nine months ended September 30, 2025, were $1.5804 billion, compared to $815.3 million in 2024[119] - The company granted 324,459 shares of restricted stock and restricted stock units during the nine months ended September 30, 2025[124] - As of September 30, 2025, the company had 10.6 million shares remaining for future issuance under the Dividend Reinvestment and Stock Purchase Plan (DRSPP)[120] Merger and Acquisition Activities - The merger with Spirit Realty Capital, Inc. was completed on January 23, 2024, with the acquisition accounted for using the acquisition method of accounting[45] - The company incurred merger-related transaction costs of $13.3 million and $14.0 million for the three and nine months ended September 30, 2025, respectively, compared to $8.6 million and $105.5 million for the same periods in 2024[41] - The company recognized a general allowance of $4.8 million for operating lease receivables as of September 30, 2025, compared to no general allowance as of December 31, 2024[37] Tax and Regulatory Compliance - The company has made provisions for taxes in applicable international territories, with no federal income taxes recorded for U.S. income, except for taxable REIT subsidiaries[30] - Deferred income tax liabilities were reported at $8.3 million as of September 30, 2025, up from $3.5 million as of December 31, 2024[31] - The company is currently evaluating the impact of new accounting standards, including ASU 2023-09 on income taxes, which will enhance disclosures but is not expected to materially affect financial results[44] Derivatives and Risk Management - The company recorded total provisions for impairment of real estate investments of $315.1 million for the nine months ended September 30, 2025[104] - The total notional amount of derivatives not designated as hedging instruments was $3,384.5 million, with a fair value asset of $25.2 million[110] - The company has entered into foreign currency forward contracts to hedge foreign currency risk associated with interest payments on intercompany loans denominated in GBP and EUR[106]

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Company Overview - Realty Income has an enterprise value of approximately $85 billion[6] - The company has approximately $61 billion in gross real estate value across 9 countries[7] - Approximately 32% of rent comes from investment-grade clients[6] - The company has declared 664 monthly dividends and has increased dividends for 112 consecutive quarters[9] Financial Performance - The company anticipates AFFO per share in the range of $4.25 to $4.27 for the year 2025[24] - The company's annualized dividend is $3.234[9] - The company's annualized base rent is approximately $5.2 billion[14] - The company invested $1.4 billion at an initial weighted average cash yield of 7.7% in Q3 2025, including $1 billion in Europe at 8.0% and $380 million in the U S at 7.0%[24] Portfolio and Operations - The company's portfolio consists of 15,542 commercial real estate properties[6] - The company's portfolio spans 1,647 industries[11] - The company's quarter-end occupancy was 98.7% with a rent recapture rate of 103.5% across 284 leases[24]

COMPANY HIGHLIGHTS: Exhibit 99.1 For the three months ended September 30, 2025: REALTY INCOME ANNOUNCES OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 SAN DIEGO, CALIFORNIA, November 3, 2025....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company , today announced operating results for the three and nine months ended September 30, 2025. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise. ...

Core Insights - Realty Income Corporation reported strong operating results for the three and nine months ended September 30, 2025, highlighting a durable and diversified income engine [3][4] - The company achieved a rent recapture rate of 103.5% on re-leased properties, indicating effective asset management [3][11] - The updated guidance for 2025 includes an AFFO per share of $4.25 - $4.27 and an investment volume of approximately $5.5 billion [3][24] Financial Performance - For the three months ended September 30, 2025, total revenue was $1,470.6 million, up from $1,330.9 million in the same period of 2024, representing an increase of 10.5% [4][33] - Net income available to common stockholders for the same period was $315.8 million, or $0.35 per share, compared to $261.8 million, or $0.30 per share, in 2024 [4][5] - Funds from Operations (FFO) for the three months was $981.1 million, with FFO per share at $1.07, up from $0.98 in the prior year [4][5] Investment Activity - The company invested $1.4 billion during the quarter at an initial weighted average cash yield of 7.7% [5][13] - Realty Income's international investments accounted for approximately $1.0 billion, with $380.0 million invested domestically during the quarter [3][4] - As of September 30, 2025, the company owned or held interests in 15,542 properties leased to 1,647 clients across 92 industries [9][31] Dividend Information - Realty Income announced its 112th consecutive quarterly dividend increase, with an annualized dividend amount of $3.234 per share as of September 30, 2025 [8][31] - The monthly dividend paid per share increased by 2.3% to $0.807 compared to $0.789 for the same period in 2024, representing 74.7% of diluted AFFO per share [8][31] Liquidity and Capital Markets - As of September 30, 2025, Realty Income had $3.5 billion in liquidity, including cash and cash equivalents of $417.2 million and $2.2 billion available under revolving credit facilities [21][22] - In October 2025, the company issued $400.0 million of 3.950% senior unsecured notes due 2029 and $400.0 million of 4.500% senior unsecured notes due 2033 [2][23] Guidance and Future Outlook - The company revised its 2025 guidance, projecting net income per share of $1.27 - $1.29 and AFFO per share of $4.25 - $4.27 [24][25] - Realty Income expects same-store rent growth of approximately 1.0% and occupancy to remain over 98% [24][25]

Group 1: Chevron - Chevron has a 38-year streak of annual dividend increases, demonstrating resilience in the volatile energy sector [2][4] - The company operates an integrated model across upstream, midstream, and downstream segments, which helps mitigate the impact of market fluctuations [4] - Chevron's current dividend yield is 4.4%, significantly higher than the market average of 1.2% and the average energy stock yield of 4% [5] Group 2: Coca-Cola - Coca-Cola is considered fairly priced, with its price-to-sales, price-to-earnings, and price-to-book-value ratios slightly below their five-year averages [6] - The company boasts over six decades of annual dividend increases and a 3% dividend yield, which is above the industry average of 2.7% [7] - Coca-Cola's strong brand and market position allow it to act as an industry consolidator, enhancing its growth potential [7] Group 3: Realty Income - Realty Income has a 30-year history of annual dividend increases, with an average annualized increase of around 4.2%, outpacing inflation [10] - As a leading net lease REIT, Realty Income benefits from easy access to capital markets and the ability to execute larger deals compared to smaller competitors [11] - The company offers a 5.5% dividend yield, which is higher than the average REIT yield of 3.9%, making it an attractive option for conservative income investors [13]