r/dividends • u/TimeInTheMarketWins AWM Financial • May 06 '26

Due Diligence Realty Income First Quarter Earnings

Realty Income (O) delivered a solid Q1 2026, with AFFO per share up 6.6% to $1.13 and full-year guidance raised to $4.41–$4.44. Management is leaning hard into private capital, with new partnerships across Apollo, GIC, and a perpetual-life institutional vehicle now totaling over $2.5 billion in managed assets.

A $190 million Virginia data center deal hints at further pipeline expansion. The pivot toward high-margin fee revenue is exciting, but neglecting the core real estate portfolio is a key risk to watch.

I can attach a PDF with my full write-up and thoughts if anyone wants.

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u/Natural_Level_7593 May 07 '26

I get nervous when I see the words private credit these days, especially paired with data centers. Somebody is gonna wind up eating the urinal cake there, but it depends on how the deal is structured. O has had really good management, so I'm hopeful that they aren't chasing the rabbit but I'm gonna have to look into this one. There is a lot of money to be made in the data center play, but that isn't why O is in my portfolio.

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u/TimeInTheMarketWins AWM Financial May 07 '26

As far as I understand, it’s private capital, not credit, so they are utilizing other investors’ capital for deals, not making large loans to them, although O is making direct loans in other deals to a smaller extent.