O · Earnings call · 2026Q2T · Full report

European Investment Outlook

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

Management remains constructive on Europe, citing attractive risk-adjusted spreads, lower borrowing costs, an established regional presence, and less competition than in the United States. Earlier geopolitical caution among international clients has eased, with more clients actively pursuing transactions. The European pipeline is concentrated in grocery, DIY, and industrial logistics, including development-driven opportunities tied to onshoring and advanced manufacturing. In the U.K., institutional capital is driving retail-park cap rates lower, while the company sees continued opportunity across Europe despite country-specific cost-of-capital differences.

Key facts

• Realty Income mentioned Europe offers attractive investment spreads supported by lower borrowing costs and remains less competitive than the U.S.