Realty Income Corporation · NYSE:O
Realty Income — Q2 2025 Earnings Presentation
30 slides from Realty Income's earnings presentation, August 2025
Slide 1: Quarterly Investor Presentation
Quarterly Investor Presentation REAL ESTATE PARTNER TO THE WORLD’S LEADING COMPANIES® August 2025
Slide 2: Safe Harbor For Forward-Looking Statements
Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When
Slide 3: Realty Income is the Global Leader in a Fragmented Net Lease Sector
Realty Income is the Global Leader in a Fragmented Net Lease Sector SIZE, SCALE AND QUALITY GROWING GLOBAL PRESENCE 6th largest ~$81B ~$5.17B A3 /A- global REIT(2) enterprise annualized credit ratings by with properties value base rent Moody’s & S&P in 9 countries and approximately 56 15,606 ~34% $6
Slide 4: Track Record of Attractive Total Return Through Consistent Earnings and Dividend Growth
Track Record of Attractive Total Return Through Consistent Earnings and Dividend Growth PROVEN TRACK STABILITY AND GROWTH RECORD OF RETURNS OF EARNINGS 13.5% 0.5 29 of 29 5.5% Compound Annual Beta vs. S&P 500 Years of Positive Median Annual Total Return Since Since 1994 NYSE Total Operational AFFO P
Slide 5: 2Q Results & 2025 Outlook
2Q Results & 2025 Outlook 5
Slide 6: Second Quarter Results Reflect Realty Income’s Differentiated Avenues for Growth
Second Quarter Results Reflect Realty Income’s Differentiated Avenues for Growth Performance Underscores the Durable Nature of Realty Income’s Data-Driven Platform • Invested $1.2 billion at an initial weighted average cash yield of 7.2%, including $889 million deployed in Europe at an initial weigh
Slide 7: 2025 Guidance
2025 Guidance 2025 Guidance(1) Reference: Prior Guidance(2) NET INCOME PER SHARE(3) $1.29 to $1.33 $1.40 to $1.46 REAL ESTATE DEPRECIATION PER SHARE $2.72 $2.70 OTHER ADJUSTMENTS PER SHARE(4) $0.23 $0.12 AFFO PER SHARE(5) $4.24 to $4.28 $4.22 to $4.28 SAME STORE RENT GROWTH Approximately 1.0% Approx
Slide 8: Stable Growth in a Variety of Interest Rate Environments
Stable Growth in a Variety of Interest Rate Environments On average, Realty Income has generated ~5% AFFO per share growth and ~11% total operational return(1) in a variety of interest rate environments since the company was publicly listed in 1994 10-YR TREASURY YIELD Average 10-yr Treasury Yield 2
Slide 9: Operations
Operations 9
Slide 10: Diversified & High-Quality Portfolio
Diversified & High-Quality Portfolio INDUSTRY DIVERSIFICATION – TOP 10 INDUSTRIES % of Annualized Base Rent(1) Grocery 10.7% CLIENT DIVERSIFICATION – TOP 20 CLIENTS Convenience Stores % of Total Annualized Base Rent(1) 9.8% Denotes IG- Rated Client(3) Home Improvement 6.4% Dollar Stores 6.2% 7-Eleve
Slide 11: Demonstrated Stability Across Market Cycles, Driven by Size, Scale & Diversification
Demonstrated Stability Across Market Cycles, Driven by Size, Scale & Diversification Minimal historical credit loss from 2014 to 2024, underpinned by high-quality & diverse portfolio with deep platform expertise PROPERTY FUNGIBILITY ANNUALIZED BASE RENT(1) Focus on high-quality real estate in good l
Slide 12: Historically Stable Cash Flows Supported by High-Quality Real Estate Portfolio
Historically Stable Cash Flows Supported by High-Quality Real Estate Portfolio CONSISTENCY BY DESIGN: Careful underwriting at acquisition Strategy of owning “mission critical” locations Long initial lease term Diversified client industries with strong fundamentals Strong underlying real estate quali
Slide 13: Proven Track Record of Value-Add Asset and Portfolio Management
Proven Track Record of Value-Add Asset and Portfolio Management Lease Expiration Schedule(1) Provides Visibility into Future Cash Flows MAXIMIZING REAL ESTATE VALUE: Weighted average lease 43.6% Strategic management of rollovers term of 9.0 years Proactively addressing portfolio “watch list” Resolve
Slide 14: Investments
Investments 14
Slide 15: Scalable, Accretive, and Diversifying: The Power of Net Lease Breadth
Scalable, Accretive, and Diversifying: The Power of Net Lease Breadth Proven Execution of New Initiatives Has Enhanced Margins, Reduced Risk, and Bolstered Growth Stable EBITDA margin Current Size by Vertical(1) reflects consistent fundamentals as the platform expands and diversifies $10.4B Realty I
Slide 16: Realty Income’s External Growth Opportunities are Broad and Diverse
Realty Income’s External Growth Opportunities International opportunities have added more than are Broad and Diverse 30% to Realty Income’s sourcing volume since 2019 SOURCED VOLUME $95 in billions $85 INTERNATIONAL UNITED STATES $64 $66 $57 $59 $39 $43 $32 $28 $30 $32 $24 $13 $17 $6 2010 2011 2012
Slide 17: Diversifying Capital Sources to Capture Abundant Opportunities
Diversifying Capital Sources to Capture Abundant Opportunities 2020 TO 2024 2025 YEAR-TO-DATE ~$335B ~$66B Sourced Volume Sourced Volume EXPANDING CAPITAL SOURCES • From 2020 to 2024, we sourced ~$335B of potential investment opportunities, selectively acquiring ~$31B • Through 2Q 2025, we have sour
Slide 18: Investment Strategy Illustration: Returns Must Exceed Long-Term WACC
Investment Strategy Illustration: Returns Must Exceed Long-Term WACC WACC viewpoint balances near-term earnings per share growth with long-term value accretion LONG-TERM KEY ASSUMPTIONS & CALCULATION: KEY ASSUMPTIONS & CALCULATION: Weighted Average Cost of Capital LONG-TERM COST OF EQUITY LONG-TERM
Slide 19: Europe Remains a Compelling Growth Market for Realty Income
Europe Remains a Compelling Growth Market for Realty Income CONTINUED OPPORTUNITY IN THE REGION GIVEN A LARGER TOTAL ADDRESSABLE MARKET RELATIVE TO THE U.S., A FRAGMENTED COMPETITIVE LANDSCAPE, AND A FAVORABLE COST OF DEBT CAPITAL 556 43 8 8.4 ~$897M 17.3% 54 properties industries countries weighted
Slide 20: Private Fund
Private Fund 20
Slide 21: Private Capital: A Natural Evolution
Leverages Realty Income’s core strengths, including expertise in 1 net sourcing, underwriting, and value-maximizing a vast portfolio of lease real estate Private Capital 2 Cultivates an additive source of attractive, consistently priced equity in private markets ten times larger than public markets(
Slide 22: Private Capital Fund Parameters
Private Capital Fund Parameters Realty Income plans to: • Operate an infinite life, open-ended fund • Focus on net lease properties in the U.S. • Target institutional investors • Maintain a meaningful co-investment in the fund(1) • Reduce seed portfolio ownership interest over time through third-par
Slide 23: Enhanced Unit-Level Investment Economics Illustration
Enhanced Unit-Level Investment Economics Illustration ILLUSTRATIVE EXAMPLE: ENHANCED RETURNS FOR REALTY INCOME THROUGH FUND INVESTMENTS “STANDALONE” ASSUMPTIONS +260 bps 12.8% Cap rate: 7.5% Investment Spread LTV: 35% 10.1% 8.8% REIT Ownership: 100% 7.5% With every dollar of Fees to Realty Income: 0
Slide 24: Enhanced Investment Returns Through Private Capital
Enhanced Investment Returns Through Private Capital Cap Rates Enhanced through Third Party Management Fees, Especially at Less External Capital Required to Finance Investments Lower Ownership Levels Wholly-Owned Illustrative Fee-Enhanced Cap Rate Scenarios(1) Unadjusted Cap Rate 5.00% 6.00% 7.00% 8.
Slide 25: Balance Sheet
Balance Sheet 25
Slide 26: Strong Balance Sheet – One of Ten S&P 500 REITs with Two A3/A- Ratings
Strong Balance Sheet – One of Ten S&P 500 REITs with Two A3/A- Ratings or Better Commercial Paper CURRENT DEBT MATURITY PROFILE(1) EUR Denominated Notes in millions GBP Denominated Notes Term Loan Revolver $4,185 $4,261 Mortgages $3,544 Unsecured Notes $3,192 Pro-Rata UJV Debt $2,501 $2,487 $2,575 $
Slide 27: Significant Liquidity and Low Borrowing Costs Support Enhanced Financial Flexibility
Significant Liquidity and Low Borrowing Costs Support Enhanced Financial Flexibility $5,131 $851 in millions Liquidity(1)(2) Debt obligations through 2025(3) Revolver Availability, $3,908 (Net of $1.4 billion of borrowing on the revolving credit facilities and after deducting $98.6 million in borrow
Slide 28: Appendix
Appendix 28
Slide 29: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) (in thousands, except per share data) Note: Adjusted Funds From Operations (AFFO), a non-GAAP financial measure, is defined as FFO adjusted for unique revenue and expense items, which we believe are not as pertinent to the measurement of our ongoing operating pe
Slide 30: Adjusted EBITDAre
Adjusted EBITDAre (dollars in thousands) (unaudited) Adjusted EBITDAre, Annualized Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized Pro Forma Adjusted EBITDAre, Net Debt/Annualized Adjusted EBITDAre, Net Debt/Annualized Pro Forma Adjusted EBITDAre, Net Debt and Preferred Stock/ Annualized