Realty Income Raises 2026 AFFO Guidance as REIT Earnings Beat Expectations

Realty Income Corp., known as the “Monthly Dividend Company,” reported second‑quarter revenue of about $1.55 billion, slightly ahead of Wall Street estimates. The REIT lifted its full‑year adjusted funds from operations (AFFO) guidance and now projects 2026 AFFO of $4.44‑$4.45 per share, up from the prior $4.41‑$4.44 range. Management also announced a $1.4 billion joint venture with Cloud Capital to acquire hyperscale data‑center assets, beginning with three facilities in Northern Virginia. Portfolio occupancy held steady at 98.8% and the company expects total annual investments of $10 billion, a half‑billion increase over prior guidance.

Clipper Realty Inc., a New York‑focused residential REIT, posted a Q2 earnings beat but analysts maintain a sell rating. The firm benefits from strong NYC apartment demand, yet its balance sheet is highly leveraged and dividend coverage is weak. A dividend yield above 13% is offset by a high payout ratio, flat portfolio growth and limited market momentum, leading to concerns about sustainability despite the earnings surprise.