Realty Income forecasts annual FFO below estimates on slowing demand, higher costs

Reuters07:12
<a href="https://laohu8.com/S/O">Realty Income</a> forecasts annual FFO below estimates on slowing demand, higher costs

Feb 24 (Reuters) - Realty Income O.N forecast 2026 annual funds from operations (FFO) below Wall Street estimates on Tuesday, citing slowing demand and higher property management costs amid an uncertain macroeconomic environment.

Shares of the company fell 0.9% in after-hours trading.

The San Diego, California-based company said it expects adjusted 2026 FFO per share between $4.38 and $4.42. The midpoint is slightly below analysts' average estimate of $4.46 per share, according to data compiled by LSEG.

It also expects annual same-store rent growth of 1% to 1.3%, compared with 1.3% growth in 2025.

Realty Income has a portfolio of more than 15,600 commercial properties leased to over 1,600 clients across the retail, restaurant, industrial and gaming industries.

The company reported adjusted FFO of $1.08 per share for the quarter ended December 31, in line with analysts' average estimates.

Realty Income, which counts Walgreens and Dollar General DG.N among its customers, posted fourth-quarter revenue of $1.49 billion, compared with estimates of $1.43 billion.

(Reporting by Megavarshini G. Somasundaram and Parth Chandna in Bengaluru; Editing by Tasim Zahid)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))

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