O · Earnings call · 2026Q2T · Full report

European Market Commentary

REALTY INCOME CORP · 2026-08-05 · Importance 32 · Surprise 24

European investment activity improved after some international clients had been cautious earlier in the year because of geopolitical uncertainty. Management views Europe as less competitive than the U.S., with attractive risk-adjusted spreads and lower borrowing costs, and expects the region to remain an important growth contributor. The European pipeline is concentrated in grocery, DIY, and industrial logistics, including development-driven opportunities tied to onshoring and advanced manufacturing; the U.K. retail-park market continues to experience strong institutional demand and downward cap-rate pressure, while Germany may be an exception.

Key facts

• In Europe in Q2 2026, Realty Income closed on approximately $400 million at a weighted average yield of 7%
• International recapture rates reached 112.9%
• Realty Income's international retail park strategy is benefiting from limited new supply, strong retailer demand, and record-low vacancy rates