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Freedom Broker Upgrades Realty Income (O) to Buy After Strong Q1 AFFO Beat

Realty Income Corporation (NYSE:O) is included among the Dividend Stock Portfolio For Retirement: Top 12 Stock Picks.

Photo by Dan Dennis on Unsplash

On May 11, Freedom Broker analyst Zhiger Kurmet upgraded Realty Income Corporation to Buy from Hold and assigned a $69 price target. The analyst said Q1 AFFO of $1.13 per share came in above both the firm’s estimates and consensus expectations. The upgrade was made “on a tactical basis,” with the firm pointing to better near-term upside potential for the shares.

During the Q1 2026 earnings call, President, CEO & Director Sumit Roy said the company entered 2026 with solid momentum and posted AFFO per share of $1.13, up 6.6% from the same period last year. He added that Realty Income invested nearly $2.8 billion during the quarter at an initial weighted average cash yield of 7.1%. That included around $1 billion directed toward credit and structured investments.

Roy also connected the quarter’s results to the company’s expanding private capital strategy. He highlighted a $1.7 billion cornerstone capital raise for the Perpetual Life U.S. Core+ fund, a strategic partnership with GIC focused on construction financing and takeout commitments, and $1 billion in equity from Apollo Global Management aimed at the insurance and annuity market.

He also said the company raised its full-year AFFO guidance following a strong start to 2026. Management increased the midpoint of its full-year AFFO per share outlook by $0.025 and maintained its goal of delivering consistent double-digit total operational returns.

Realty Income Corporation is a real estate investment trust focused on acquiring, owning, and managing freestanding commercial properties. The company leases these properties under long-term net lease agreements to a diversified group of operators that includes investment-grade and investment-grade-equivalent clients.

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