O · Earnings call · 2026Q2T · Full report
Credit Loss Outlook
REALTY INCOME CORP · 2026-08-05 · Importance 32 · Surprise 24 · No source text
Realty Income held its 2026 credit-loss outlook at approximately 40 basis points of rental revenue. The tenant watch list remained in the high-5% range and included approximately 137 individual tenants, with a median exposure of about 2 basis points. Home furnishings and casual dining represented the largest watch-list categories, but exposure declined materially after the largest names. Management said historical credit losses were in the low-20-basis-point range and that current performance was trending back toward that level.
Key facts
- Realty Income is holding its 2026 credit loss outlook flat at around 40 basis points of rental revenue
- Historical credit loss has been in the low 20-basis-point area and current guidance of 40 basis points is viewed as fairly conservative
- Realty Income has about $3 billion in credit investments on the balance sheet (circa $3 billion)
- Watch list remains in the high 5% area and is very granular with about 137 individual tenants comprising it and a median around 2 basis points
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -0.3% | Realty Income is holding its 2026 credit loss outlook flat at around 40 basis points of rental revenue |
| net_income | negative | committed | — | Historical credit loss has been in the low 20-basis-point area and current guidance of 40 basis points is viewed as fairly conservative |