O · Earnings call · 2026Q2T · Full report

Private Capital Platform

REALTY INCOME CORP · 2026-08-05 · Importance 40 · Surprise 42 · In source text

Management fee income to Realty Income was approximately $3.2 million in the second quarter, primarily from the U.S. Core Plus fund and also from the insurance joint venture. The Core Plus fund raised $1.7 billion in cornerstone equity, deployed the remaining cornerstone commitments, and increased gross asset value to approximately $3 billion. Management expects approximately $10 million of annual fund management fees and an additional $2 million to $3 million from the insurance joint venture. Private capital represented only 18% of year-to-date investment funding through public equity consumption, compared with a 47% average over the prior three years.

Key facts

• U.S. Core Plus fund fully deployed the fund's remaining cornerstone commitments during the quarter and increased total gross asset value to approximately $3 billion
• The Core Plus fund raised $1.7 billion during the cornerstone round and had drawn down all of the capital that is now fee-generating as of early July
• Raised an additional $90 million of forward equity, bringing current ATM unsettled balance to approximately $1.3 billion
• Public equity comprised 18% of investment volume year to date compared to an average of 47% over the past three years
• Expect around $10 million of management fees for the Core Plus fund and perhaps $2 million to $3 million attributable to the insurance joint venture
• Example transaction: fund acquired a combined 19-property portfolio leased to a quick-service restaurant operator for more than $100 million
• Realty Income expects roughly one-third equity and two-thirds leverage for the fund's leverage capacity and raised about $1.7 billion in equity for the fund
• Realty Income has invested in credit/loan investments producing initial yields up to 9.2% this quarter

Impact estimates