Realty Income (O) Citi’s Miami Global Property CEO Conference 2026 summary

Opening remarks and business highlights

• Delivered AFFO per share of $4.28 in 2025, supported by $6.3 billion in gross investments, 98.9% occupancy, and a 103.9% rent recapture rate, emphasizing steady cash flows.

• Portfolio exceeds 15,500 properties, diversified by client, industry, and geography, with 90% of rent from resilient, non-discretionary businesses.

• Consistently generated 8%-12% total operational returns, combining AFFO growth and dividend yield, even during market volatility.

• Deployed $6.2 billion of capital in 2025 at a 7.3% initial cash yield, maintaining conservative leverage and strong credit metrics.

• Sourced over $120 billion in global opportunities, closing only on select deals meeting risk-adjusted return thresholds.

Strategic growth and capital diversification

• Launched a U.S. Core Plus private fund in 2025, raising over $1.5 billion from institutional investors.

• Formed strategic partnerships with GIC and Blackstone, enabling pursuit of larger, complex deals while preserving underwriting standards.

• Expanded into Europe, now representing 19% of annualized base rent, and entered Mexico to capitalize on nearshoring trends.

• Diversified capital sources to reduce reliance on public equity, enabling execution of a platform capable of $10-$12 billion annual investments.

• Private fund and partnership channels enhance returns by combining spread and management fees, accelerating growth and return on equity.

Asset management, technology, and operational efficiency

• Proprietary predictive analytics and machine learning tools provide early risk detection, informing proactive asset management and capital recycling.

• Disposed of $744 million in assets in 2025, with similar targets for 2026, driven by data-driven risk assessments.

• Lease termination fees are used strategically to optimize portfolio value and accelerate re-leasing to higher-value tenants.

• AI and automation are integrated across workflows, with ongoing efforts to centralize data for future agentic AI deployment.

• Long-term goal is to leverage AI for greater scale and efficiency, reducing the need for additional hires and enhancing underwriting and asset management.