O · Earnings call · 2026Q2T · Full report

Competition and Pricing Pressure

REALTY INCOME CORP · 2026-08-05 · Importance 23 · Surprise 24

Management said U.S. net-lease competition has increased, with many new private players and some public companies competing for assets and keeping cap rates lower. In data centers, numerous developers and capital providers are competing for development and ownership opportunities, although Realty Income believes its long-term ownership model differentiates it for hyperscale assets with investment-grade tenants and long leases. In the U.K., institutional capital and private-equity consolidation are driving cap rates lower for retail parks, while European markets generally remain less competitive than the U.S.

Key facts

• Realty Income's management indicated competition in the U.S. is increasing with many new private players and some public players, which will keep cap rates lower