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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 1183 added, 612 removed, 505 unchanged (78% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts) (unaudited)

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

Real estate held for investment, at cost:

Land $ 18,628,769 $ 18,368,029

Buildings and improvements

1 unchanged sentence

Less accumulated depreciation and amortization

( 9,466,261 )

( 8,778,536 )

Real estate held for investment, net

3 unchanged sentences

Lease intangible assets, net

Goodwill 4,932,199 4,932,199

Investment in loans and financing receivables, net

Investment in unconsolidated entities

Other assets, net

Total assets $ 74,554,704 $ 72,795,612

LIABILITIES AND EQUITY

10 unchanged sentences

Stockholders’ equity:

Common stock and paid in capital, par value $ 0.01 per share, 1,300,000 shares authorized, 932,474 and 933,975 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

$ 49,984,064 $ 49,861,660

Common stock and paid in capital, par value $ 0.01 per share, 1,300,000 shares

authorized, 946,202 and 933,975 shares issued and outstanding as of June

30, 2026 and December 31, 2025 , respectively

Distributions in excess of net income

( 11,391,151 )

( 10,527,984 )

Accumulated other comprehensive income

1 unchanged sentence

Noncontrolling interests

Total equity $ 41,235,669 $ 40,123,968

Total liabilities and equity

3 unchanged sentences

(in thousands, except per share amounts) (unaudited)

Three months ended March 31,

Three months ended

Six months ended

Rental (including reimbursements)

Interest income on financing receivables

Interest and dividend income on loans and preferred equity investments 70,110 34,736

Other 5,670 77

Interest and dividend income on loans and preferred

equity investments

Total revenue

Depreciation and amortization

Interest 291,940 268,374

Property (including reimbursements)

General and administrative

Provisions for impairment 129,268 116,589

Provisions for impairment of real estate

Provisions for credit losses on loans and financing

Merger, transaction, and other costs, net

5 unchanged sentences

Income before income taxes

Income taxes ( 26,195 ) ( 15,657 )

Net income 320,935 251,462

Net income attributable to noncontrolling interests

Net income available to common stockholders

Amounts available to common stockholders per common share:

Amounts available to common stockholders per common

Net income, basic and diluted

Weighted average common shares outstanding:

Basic 931,977 891,666

Diluted 934,446 892,351

Net income available to common stockholders

1 unchanged sentence

Foreign currency translation adjustment

Unrealized gain (loss) on derivatives, net 48,332 ( 10,625 )

Unrealized (loss) gain on derivatives, net

Total other comprehensive income

4 unchanged sentences

(in thousands) (unaudited)

Three months ended March 31, 2026 and 2025

capital Distributions

net income Accumulated

comprehensive income Total

stockholders’

equity Non-controlling

interests Total

Balance, December 31, 2025

Three months ended June 30, 2026 and 2025

Distributions

comprehensive

Balance, March 31, 2026

$ ( 10,973,813 )

Net income — — 311,766 — 311,766 9,169 320,935

Other comprehensive income

2 unchanged sentences

Share repurchases

Contributions by noncontrolling interests, net of costs — ( 20,573 ) — — ( 20,573 ) 1,647,374 1,626,801

Contributions by noncontrolling

interests, net of costs

Purchase of noncontrolling interests

Reallocation of equity

Share-based compensation, net

Balance, June 30, 2026

$ ( 11,391,151 )

Balance, March 31, 2025

$ ( 9,117,085 )

Other comprehensive income

Distributions paid and payable

Share issuances, net of costs

Contributions by noncontrolling

interests, net of costs

Share-based compensation, net

Balance, June 30, 2025

$ ( 9,651,395 )

Six months ended June 30, 2026 and 2025

Distributions

comprehensive

Balance, December 31, 2025

$ ( 10,527,984 )

Net income — — 249,815 — 249,815 1,647 251,462

Other comprehensive income

Distributions paid and payable

( 1,518,888 )

( 1,548,878 )

Share issuances, net of costs

Contributions by noncontrolling interests, net of costs — — — — — 1,342 1,342

Share repurchases

Contributions by noncontrolling

interests, net of costs

Purchase of noncontrolling interests

Reallocation of equity

Share-based compensation, net

Balance, March 31, 2025

Balance, June 30, 2026

$ ( 11,391,151 )

Balance, December 31, 2024

$ ( 8,648,559 )

Other comprehensive income

Distributions paid and payable

( 1,449,570 )

( 1,455,557 )

Share issuances, net of costs

Contributions by noncontrolling

interests, net of costs

Share-based compensation, net

Balance, June 30, 2025

$ ( 9,651,395 )

The accompanying notes to consolidated financial statements are an integral part of these statements.

2 unchanged sentences

(in thousands) (unaudited)

Three months ended March 31,

Six months ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 320,935 $ 251,462

Adjustments to net income:

7 unchanged sentences

Non-cash interest rate swaps

Payment-in-kind interest

Gain on sales of real estate

1 unchanged sentence

Distributions on common equity from unconsolidated entities

Provisions for impairment 129,268 116,589

Deferred income tax expense (benefit) 1,437 ( 104 )

Provisions for impairment of real estate

Provisions for credit losses on loans and financing receivables

Deferred income tax expense

Change in assets and liabilities

4 unchanged sentences

Investment in real estate

( 3,549,763 )

( 2,214,524 )

Improvements to real estate, including leasing costs

1 unchanged sentence

Investment in loans and preferred equity

( 1,660,249 )

Proceeds from sales of real estate

3 unchanged sentences

Net cash used in investing activities

( 5,027,370 )

( 2,470,381 )

CASH FLOWS FROM FINANCING ACTIVITIES

Cash distributions to common stockholders

( 1,514,811 )

( 1,439,274 )

Borrowings on revolving credit facilities and commercial paper programs

Payments on revolving credit facilities and commercial paper programs

( 42,616,939 )

( 10,464,748 )

Proceeds from term loan

Principal payment on term loan

Proceeds from notes payable issued

Principal payment on notes payable

( 1,424,997 )

Principal payments on mortgages payable

8 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents

Net increase (decrease) in cash, cash equivalents and restricted cash 3,287 ( 144,820 )

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, beginning of period

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026 (unaudited)

June 30, 2026 (unaudited)

Summary of Significant Accounting Policies

Realty Income Corporation (“Realty Income,” the “Company,” “we,” “our” or “us”), a Maryland corporation, is an S&P 500 company and real estate partner to the world's leading companies ® .

The Company was founded in 1969 and our shares of common stock trade on the New York Stock Exchange ("NYSE") under the symbol “O”.

As of March 31, 2026, we owned or held interests in a diversified portfolio of 15,571 properties located in all 50 states of the United States ("U.S."), the United Kingdom ("U.K."), and eight other countries in Europe.

Realty Income Corporation (“Realty Income,” the “Company,” “we,” “our” or “us”), a Maryland corporation, is an S&P

500 company and real estate partner to the world's leading companies ® .

The Company was founded in 1969 and

our shares of common stock trade on the New York Stock Exchange ("NYSE") under the symbol “O”.

As of June 30, 2026 , we owned or held interests in a diversified portfolio of 15,588 properties located in all 50 states

of the United States ("U.S."), the United Kingdom ("U.K."), and eight other countries in Europe.

Basis of Presentation .

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.

Intercompany accounts and transactions are eliminated in consolidation.

These consolidated financial statements have been prepared in accordance with

accounting principles generally accepted in the United States of America ("U.S.

Intercompany accounts

and transactions are eliminated in consolidation.

Dollar ("USD") is our reporting currency.

Unless otherwise indicated, all dollar amounts are expressed in USD.

For our consolidated subsidiaries whose functional currency is not the USD, we translate their financial statements into USD at the time we consolidate those subsidiaries’ financial statements.

Generally, assets and liabilities are translated at the exchange rate in effect at the balance sheet date.

The resulting translation adjustments are included in 'Accumulated other comprehensive income' ("AOCI") on our consolidated balance sheets.

Certain balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate.

otherwise indicated, all dollar amounts are expressed in USD.

For our consolidated subsidiaries whose functional currency is not the USD, we translate their financial statements

into USD at the time we consolidate those subsidiaries’ financial statements.

Generally, assets and liabilities are

translated at the exchange rate in effect at the balance sheet date.

The resulting translation adjustments are

included in ' Accumulated other comprehensive income ' ("AOCI") on our consolidated balance sheets .

balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate.

Income statement accounts are translated using the average exchange rate for the period.

We and certain of our consolidated subsidiaries have intercompany and third-party debt that is not denominated in our functional currency.

When the debt is remeasured to the functional currency of the entity, a gain or loss can result.

The resulting adjustment is reflected in 'Foreign currency and derivative loss, net' in our consolidated statements of income and comprehensive income.

In the statement of cash flows, cash flows denominated in foreign currencies are translated using the exchange rates in effect at the time of the respective cash flows or at average exchange rates for the period, depending on the nature of the cash flow items.

In the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary to present a fair statement of results for the interim periods presented have been included.

Operating results for the three months ended March 31, 2026 are not necessarily an indication of the results that may be expected for the entire year.

Readers of this quarterly report should refer to our audited consolidated financial statements for the year ended December 31, 2025, which are included in our 2025 annual report on Form 10-K , as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report.

We and certain of our consolidated subsidiaries have intercompany and third-party debt that is not denominated in

our functional currency.

When the debt is remeasured to the functional currency of the entity, a gain or loss can

The resulting adjustment is reflected in ' Foreign currency and derivative loss, net ' in our consolidated

statements of income and comprehensive income .

In the statement of cash flows, cash flows denominated in

foreign currencies are translated using the exchange rates in effect at the time of the respective cash flows or at

average exchange rates for the period, depending on the nature of the cash flow items.

In the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary to present a

fair statement of results for the interim periods presented have been included.

Operating results for the three and six

months ended June 30, 2026 are not necessarily an indication of the results that may be expected for the entire

Readers of this quarterly report should refer to our audited consolidated financial statements for the year

ended December 31, 2025 , which are included in our 2025 annual report on Form 10-K , as certain disclosures that

would substantially duplicate those contained in the audited financial statements have not been included in this

Principles of Consolidation.

These consolidated financial statements include the accounts of Realty Income and all other entities in which we have a controlling financial interest.

We evaluate whether we have a controlling financial interest in an entity in accordance with Accounting Standards Codification ("ASC") 810, Consolidation.

Voting interest entities ("VOEs") are entities considered to have sufficient equity at risk and which the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities.

We consolidate voting interest entities in which we have a controlling financial interest, which we typically have through holding of a majority of the entity’s voting equity interests.

Variable interest entities ("VIEs") are entities that lack sufficient equity at risk or where the equity holders either do not have the obligation to absorb losses, do not have the right to receive residual returns, do not have the right to make decisions about the entity’s activities, or some combination of the above.

A controlling financial interest in a VIE is present when an entity has a variable interest, or a combination of variable interests, that provides the entity with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

An entity that meets both conditions above is deemed the primary beneficiary and consolidates the VIE.

We reassess our initial evaluation of whether an entity is a VIE when certain reconsideration events occur.

We reassess our determination of whether we are the primary beneficiary of a VIE on an ongoing basis based on current facts and circumstances.

As of March 31, 2026, we are considered the primary beneficiary of our U.S.

Core Plus Fund (the "Fund"), our strategic partnership in joint venture with Apollo Global Management, Inc.

These consolidated financial statements include the accounts of Realty Income and

all other entities in which we have a controlling financial interest.

We evaluate whether we have a controlling

financial interest in an entity in accordance with Accounting Standards Codification ("ASC") 810, Consolidation.

Voting interest entities ("VOEs") are entities considered to have sufficient equity at risk and which the equity holders

have the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the

entity’s activities.

We consolidate voting interest entities in which we have a controlling financial interest, which we

typically have through holding of a majority of the entity’s voting equity interests.

Variable interest entities ("VIEs") are entities that lack sufficient equity at risk or where the equity holders either do

not have the obligation to absorb losses, do not have the right to receive residual returns, do not have the right to

make decisions about the entity’s activities, or some combination of the above.

A controlling financial interest in a

VIE is present when an entity has a variable interest, or a combination of variable interests, that provides the entity

with (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance

and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially

be significant to the VIE.

An entity that meets both conditions above is deemed the primary beneficiary and

consolidates the VIE.

We reassess our initial evaluation of whether an entity is a VIE when certain reconsideration

events occur.

We reassess our determination of whether we are the primary beneficiary of a VIE on an ongoing

basis based on current facts and circumstances.

As of June 30, 2026 , we are considered the primary beneficiary of our U.S.

Core Plus Fund (the "Fund"), our

strategic joint venture with Apollo Global Management, Inc.

("Apollo"), Realty Income, L.P.

and certain investments, including investments in joint ventures.

Below is a summary of selected financial data of such consolidated VIEs, included on our consolidated balance sheets as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

and certain investments,

including investments in joint ventures.

Below is a summary of selected financial data of such consolidated VIEs,

included on our consolidated balance sheets as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026

December 31, 2025

Net real estate

$ 6,755,640 $ 4,831,968

$ 7,772,142 $ 5,579,888

Total liabilities

$ 395,944 $ 422,092

The portion of a consolidated entity not owned by us is recorded as a noncontrolling interest.

Noncontrolling interests are reflected on our consolidated balance sheets as a component of equity.

Noncontrolling interests that were created or assumed as part of a business combination or asset acquisition were recognized at fair value as of the date of the transaction.

Noncontrolling

interests are reflected on our consolidated balance sheets as a component of equity.

Noncontrolling interests that

were created or assumed as part of a business combination or asset acquisition were recognized at fair value as of

the date of the transaction.

For further details, see note 9 , Noncontrolling Interests .

Reclassification.

The 'Other revenue' line item from prior periods has been broken out into the following line items:

'Interest income on financing receivables', 'Interest and dividend income on loans and preferred equity investments, and 'Other' to provide further detail on amounts included as 'Other' in our consolidated statements of income and comprehensive income.

Prior periods have been reclassified to conform with the current period’s presentation.

The 'Other revenue' line item from prior periods has been disaggregated into the following line

' Interest income on financing receivables ', ' Interest and dividend income on loans and preferred equity

investments ' , and 'Other' to provide further detail on amounts included as 'Other' in our consolidated statements of

income and comprehensive income .

'Provisions for impairment' has also been disaggregated into the following line

' Provisions for impairment of real estate ' and ' Provisions for credit losses on loans and financing receivables '

in our consolidated statements of income and comprehensive income .

Finally, ' Investment in loans and financing

receivables, net ' has been disaggregated from ' Other assets, net ' on our consolidated balance sheets .

Prior periods

have been reclassified to conform with the current period’s presentation.

Use of Estimates.

The consolidated financial statements were prepared in conformity with U.S.

GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities,

the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts

of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

Net Income per Common Share.

Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period.

Diluted net income per common share is computed by dividing net income available to common stockholders, plus income attributable to dilutive shares and convertible common units for the period, by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive common shares outstanding during the reporting period, including common shares required to satisfy the exchange obligation for convertible notes under the if-converted method, assuming all such convertible notes were converted at the beginning of the reporting period, or date of issuance, if later.

The average closing price of our common stock for the reporting period is used as the basis for determining the dilutive effect on earnings per share.

Basic net income per common share is computed by dividing net income

available to common stockholders by the weighted average number of common shares outstanding during each

Diluted net income per common share is computed by dividing net income available to common

stockholders, plus income attributable to dilutive shares and convertible common units for the period, by the

weighted average number of common shares that would have been outstanding assuming the issuance of common

shares for all dilutive common shares outstanding during the reporting period, including common shares required to

satisfy the exchange obligation for convertible notes under the if-converted method, assuming all such convertible

notes were converted at the beginning of the reporting period, or date of issuance, if later.

The average closing price

of our common stock for the reporting period is used as the basis for determining the dilutive effect on earnings per

For further details, see note 15 , Net Income per Common Share .

Income Taxes .

We have elected to be taxed as a real estate investment trust ("REIT"), under Section 856 of the U.S.

We have elected to be taxed as a real estate investment trust ("REIT"), under Section 856 of the

Internal Revenue Code of 1986, as amended (the “Code”).

We believe we have qualified and continue to qualify as a REIT.

Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income.

Assuming our dividends equal or exceed our taxable net income in the U.S., we generally will not be required to pay U.S.

We believe we have qualified and continue to

qualify as a REIT.

Under the REIT operating structure, we are permitted to deduct dividends paid to our

stockholders in determining our taxable income.

Assuming our dividends equal or exceed our taxable net income in

the U.S., we generally will not be required to pay U.S.

income taxes on such income.

Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries ("TRS").

A TRS is a subsidiary of a REIT that is subject to federal, state and local income taxes, as applicable.

Our use of TRS entities enables us to engage in certain business activities while complying with the REIT qualification requirements and to retain any income generated by these businesses for reinvestment without the requirement to distribute those earnings.

We are liable for taxes in our applicable international territories and have made the appropriate provisions in those territories.

Therefore, the income taxes recorded in our consolidated statements of income and comprehensive income represent amounts for U.S.

income taxes on our TRS entities, city and state income and franchise taxes, as well as income taxes for the applicable international territories.

Accordingly, no provision has

been made for federal income taxes in the accompanying consolidated financial statements, except for federal

income taxes of our taxable REIT subsidiaries ("TRS").

A TRS is a subsidiary of a REIT that is subject to federal,

state and local income taxes, as applicable.

Our use of TRS entities enables us to engage in certain business

activities while complying with the REIT qualification requirements and to retain any income generated by these

businesses for reinvestment without the requirement to distribute those earnings.

We are liable for taxes in our

applicable international territories and have made the appropriate provisions in those territories.

Therefore, the

income taxes recorded in our consolidated statements of income and comprehensive income represent amounts for

income taxes on our TRS entities, city and state income and franchise taxes, as well as income taxes for the

applicable international territories.

We recognize deferred income tax in our taxable subsidiaries, including certain international jurisdictions.

Deferred income tax assets and liabilities are generally the result of temporary differences between book and tax accounting, such as timing differences caused by different useful lives used for depreciation.

We provide for a valuation allowance for deferred income tax assets if we believe some or all of the deferred income tax assets may not be realized.

We had $ 5.7 million and $ 4.3 million of net deferred tax liabilities as of March 31, 2026 and December 31, 2025, respectively, which are reported in 'Other liabilities' on our consolidated balance sheets.

Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for financial reporting purposes primarily due to differences in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things.

We regularly analyze our various international, federal and state filing positions and only recognize the income tax effect in our financial statements when certain criteria regarding uncertain income tax positions have been met.

We believe that our income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities.

Therefore, no provisions for uncertain tax positions have been recorded on our consolidated financial statements.

income tax assets and liabilities are generally the result of temporary differences between book and tax accounting,

such as timing differences caused by different useful lives used for depreciation.

We provide for a valuation

allowance for deferred income tax assets if we believe some or all of the deferred income tax assets may not be

We had $ 8.7 million and $ 4.3 million of net deferred tax liabilities as of June 30, 2026 and December 31,

2025 , respectively, which are reported in ' Other liabilities ' on our consolidated balance sheets .

Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for

financial reporting purposes primarily due to differences in the estimated useful lives and methods used to compute

depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things.

We regularly analyze our various international, federal and state filing positions and only recognize the income tax

effect in our financial statements when certain criteria regarding uncertain income tax positions have been met.

believe that our income tax positions would more likely than not be sustained upon examination by all relevant

taxing authorities.

Therefore, no provisions for uncertain tax positions have been recorded on our consolidated

financial statements.

Lease Revenue Recognition and Accounts Receivable.

The majority of our leases are accounted for as operating leases.

Under this method, leases that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term.

Any rental revenue contingent upon our client’s sales, or percentage rent, is recognized only after our client exceeds its sales breakpoint.

Rental increases based upon changes in the consumer price indices are recognized only after the changes in the indexes have occurred and are then applied according to the lease agreements.

Lease termination fees, which are included in rental revenue, are amortized over the remaining term of the lease until we have no continuing obligation to provide services to such former client.

Contractually obligated rental revenue from our clients for recoverable real estate taxes and operating expenses are included in contractually obligated reimbursements by our clients, a component of rental revenue, in the period when such costs are incurred.

Taxes and operating expenses paid directly by our clients are recorded on a net basis.

Other revenue includes certain property-related revenue not included in rental revenue and interest income recognized on financing receivables for certain leases with above-market terms.

We assess the probability of collecting substantially all of the lease payments to which we are entitled under the original lease contract as required under ASC 842, Leases .

We assess the collectability of our future lease payments based on an analysis of creditworthiness, economic trends and other facts and circumstances related to the applicable clients.

If we conclude the collection of substantially all of lease payments under a lease is less than probable, rental revenue recognized for that lease is limited to cash received going forward, existing operating lease receivables, including those related to straight-line rental revenue, must be written off as an adjustment to rental revenue, and no further operating lease receivables are recorded for that lease until such future determination is made that substantially all lease payments under that lease are now considered probable.

If we subsequently conclude that the collection of substantially all lease payments under a lease is probable, a reversal of lease receivables previously written off is recognized.

In addition to the client-specific collectability assessment conducted, we may also recognize a general allowance, as a reduction to rental revenue, for our operating lease receivables which are not expected to be fully collectible.

We had $ 5.3 million and $ 5.1 million of general allowance as of March 31, 2026 and December 31, 2025, respectively.

The majority of our leases are accounted for as

operating leases.

Under this method, leases that have fixed and determinable rent increases are recognized on a

straight-line basis over the lease term.

Any rental revenue contingent upon our client’s sales, or percentage rent, is

recognized only after our client exceeds its sales breakpoint.

Rental increases based upon changes in the

consumer price indices are recognized only after the changes in the indexes have occurred and are then applied

according to the lease agreements.

Lease termination fees, which are included in rental revenue, are amortized

over the remaining term of the lease until we have no continuing obligation to provide services to such former client.

Contractually obligated rental revenue from our clients for recoverable real estate taxes and operating expenses is

included in contractually obligated reimbursements by our clients, a component of rental revenue, in the period

when such costs are incurred.

Taxes and operating expenses paid directly by our clients are recorded on a net

Other revenue includes certain property-related revenue not included in rental revenue.

Interest income on financing

receivables includes interest income recognized on financing receivables for certain leases with above-market

We assess the probability of collecting substantially all of the lease payments to which we are entitled under the

original lease contract as required under ASC 842, Leases .

We assess the collectability of our future lease

payments based on an analysis of creditworthiness, economic trends and other facts and circumstances related to

the applicable clients.

If we conclude the collection of substantially all of lease payments under a lease is less than

probable, rental revenue recognized for that lease is limited to cash received going forward, existing operating lease

receivables, including those related to straight-line rental revenue, must be written off as an adjustment to rental

revenue, and no further operating lease receivables are recorded for that lease until such future determination is

made that substantially all lease payments under that lease are now considered probable.

If we subsequently

conclude that the collection of substantially all lease payments under a lease is probable, a reversal of lease

receivables previously written off is recognized.

In addition to the client-specific collectability assessment conducted, we may also recognize a general allowance,

as a reduction to rental revenue, for our operating lease receivables which are not expected to be fully collectible.

We had $ 5.3 million and $ 5.1 million of general allowance as of June 30, 2026 and December 31, 2025 ,

respectively.

Loans Receivable .

Our acquired loans are classified as held for investment and are carried at their amortized cost basis.

We recognize interest income on loans receivable using a method that approximates the effective-interest method.

Direct costs associated with originating loans, along with any premium or discount, are deferred and amortized as an adjustment to interest income over the term of the loan using the effective interest method.

When management identifies that the full recovery of the contractually specified payments of principal and interest of a loan is less than probable, we evaluate the expected loss amount and place it on non-accrual status.

We have made an accounting policy election to record accrued interest on our loan portfolio separate from our loan receivable and other lending investments.

These loans and the related interest receivable are presented in 'Other assets, net' on our consolidated balance sheets.

Our investments in loans are classified as held for investment and are carried at their amortized

We recognize interest income on loans receivable using a method that approximates the effective-

interest method.

Direct costs associated with originating loans, along with any premium or discount, are deferred

and amortized as an adjustment to interest income over the term of the loan using the effective interest method.

When management identifies that the full recovery of the contractually specified payments of principal and interest

of a loan is less than probable, we evaluate the expected loss amount and place it on non-accrual status.

made an accounting policy election to record accrued interest on our loan portfolio separate from our loan

receivable and other lending investments.

These loans are presented in Investment in loans and financing

receivables, net ' and the related interest receivable is presented in 'Other assets, net' on our consolidated balance

Acquisition, Development and Construction ("ADC") Arrangements.

We originate loans to third-party borrowers for the acquisition, development, and construction of real estate.

Each ADC arrangement is evaluated in accordance with ASC 310, Receivables , which involves the determination of whether an arrangement should be accounted for as a loan receivable or as an equity method investment.

This analysis is applied only where the borrower entity is not subject to consolidation under ASC 810, Consolidation.

Specifically, we first assess whether we are expected to receive more than 50% of the expected residual profits from the project, defined as profit above a reasonable lender return from the sale, refinancing, or other use of the property.

If our expected participation in residual profits exceeds 50%, the arrangement must be accounted for as an equity method investment.

expected participation is 50% or less, we further evaluate whether the arrangement exhibits characteristics more consistent with a loan or an equity method investment.

This evaluation involves judgment and considers various factors, including the significance of borrower equity in the project, loan-to-cost and loan-to-value metrics relative to market, the existence of guarantees or binding lease arrangements, and interest rate and fee terms relative to market, among others.

We reassess the classification of each ADC arrangement if facts and circumstances subsequently change in a manner that could affect the initial classification.

Any reclassification is applied prospectively.

As of March 31, 2026, we have determined that all of our ADC loan arrangements have characteristics more consistent with a loan than an equity method investment, and accordingly account for them as loan receivables.

We originate loans to third-party

borrowers for the acquisition, development, and construction of real estate.

Each ADC arrangement is evaluated in

accordance with ASC 310, Receivables , which involves the determination of whether an arrangement should be

accounted for as a loan receivable or as an equity method investment.

This analysis is applied only where the

borrower entity is not subject to consolidation under ASC 810, Consolidation.

Specifically, we first assess whether

we are expected to receive more than 50% of the expected residual profits from the project, defined as profit above

a reasonable lender return from the sale, refinancing, or other use of the property.

If our expected participation in

residual profits exceeds 50%, the arrangement must be accounted for as an equity method investment.

expected participation is 50% or less, we further evaluate whether the arrangement exhibits characteristics more

consistent with a loan or an equity method investment.

This evaluation involves judgment and considers various

factors, including the significance of borrower equity in the project, loan-to-cost and loan-to-value metrics relative to

market, the existence of guarantees or binding lease arrangements, and interest rate and fee terms relative to

market, among others.

We reassess the classification of each ADC arrangement if facts and circumstances

subsequently change in a manner that could affect the initial classification.

Any reclassification is applied

prospectively.

As of June 30, 2026 , we have determined that all of our ADC loan arrangements have characteristics

more consistent with a loan than an equity method investment, and accordingly account for them as loan

Financing Receivables.

For properties we acquire that qualify as sale-leaseback transactions and for which the purchase price is in excess of the fair value of the real estate acquired, the difference is accounted for as financing receivables, presented within 'Other assets, net' on our consolidated balance sheets.

For properties we acquire that qualify as sale-leaseback transactions and for which the

purchase price is in excess of the fair value of the real estate acquired, the difference is accounted for as financing

receivables, presented within ' Investment in loans and financing receivables, net ' on our consolidated balance

Rent payments are allocated between rental income and the financing receivable.

Interest income on the financing receivable is recognized using the interest rate implicit in the leaseback and presented within 'Interest income on financing receivables revenue' in our consolidated statements of income and comprehensive income.

Our net investments in

sales-type and direct financing leases are also accounted for as financing receivables.

Interest income on financing

receivables is recognized using the interest rate implicit in the lease and presented within ' Interest income on

financing receivables ' in our consolidated statements of income and comprehensive income .

Allowance for Credit Losses .

The allowance for credit losses, which is recorded as a reduction to loans receivable and financing receivable within 'Other assets, net' on our consolidated balance sheets, is measured using a probability of default method based on our clients respective credit ratings, our historical experience, and the expected value of the underlying collateral upon its repossession.

If we determine a financing receivable no longer shares risk characteristics with other financing receivables in the pool, we evaluate the financing receivable for expected credit losses on an individual basis.

The allowance for credit losses, which is recorded as a reduction to ' Investment in

loans and financing receivables, net ' on our consolidated balance sheets, is based on our clients' respective credit

ratings, our historical experience, and the expected value of the underlying collateral upon its repossession.

generally apply probability of default, discounted cash flow, or loss rate methods considering the risk characteristics

of each asset or pool.

If we determine a financing receivable no longer shares risk characteristics with other

financing receivables in the pool, we evaluate the financing receivable for expected credit losses on an individual

Included in our model are factors that incorporate forward-looking information.

The measurement of expected credit losses is also applicable to off-balance sheet credit exposures such as unfunded loan commitments.

The allowance for credit losses attributed to unfunded commitments is included in 'Other liabilities' on our consolidated balance sheets.

Changes in our allowance for credit losses are presented in 'Provisions for impairment' in our consolidated statements of income and comprehensive income.

For further details, see note 5, Investments in Loans and Financing Receivables.

The measurement of expected

credit losses is also applicable to off-balance sheet credit exposures such as unfunded loan commitments.

allowance for credit losses attributed to unfunded commitments is included in 'Other liabilities' on our consolidated

balance sheets.

Changes in our allowance for credit losses are presented in ' Provisions for credit losses on loans

and financing receivables ' in our consolidated statements of income and comprehensive income .

For further details,

see note 5 , Investments in Loans and Financing Receivables .

Goodwill is not amortized, but is subject to impairment reviews annually, or more frequently if necessary.

Goodwill is qualitatively assessed to determine whether a quantitative impairment assessment is necessary.

Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value.

carrying value of the asset exceeds its estimated fair value, an impairment loss is recognized, and the asset is

written down to its estimated fair value.

We perform our annual goodwill impairment assessment as of June 30.

also test goodwill between annual dates if an event or circumstance indicated impairment has likely occurred.

During the six months ended June 30, 2026 and 2025 , there were no impairments of goodwill.

Merger, Transaction, and Other Costs, Net .

Merger, transaction, and other costs, net, includes (i) expensed acquisition costs, including certain costs incurred for credit investment loans, (ii) organization costs for potential strategic ventures and business lines, (iii) ongoing legal services incurred in fundraising of the Fund, (iv) merger-related transaction costs, and (v) other costs that do not align with the ongoing operations of our business.

During the three months ended March 31, 2026, we incurred $ 10.8 million of merger, transaction, and other costs, net consisting primarily of expensed acquisition costs and placement fees incurred in fundraising for the Fund.

Merger, transaction, and other costs, net , includes (i) expensed

acquisition costs, including certain costs incurred for credit investment loans, (ii) organization costs for potential

strategic ventures and business lines, (iii) placement fees incurred in fundraising of the Fund, (iv) merger-related

transaction costs, and (v) other costs that do not align with the ongoing operations of our business.

During the three

and six months ended June 30, 2026 , we incurred $ 2.1 million and $ 12.8 million , respectively, of merger,

transaction, and other costs, net consisting primarily of placement fees incurred in fundraising for the Fund and

certain joint venture formation costs.

Equity Offering Costs.

Underwriting commissions and offering costs have been reflected as a reduction of additional paid-in capital on our consolidated balance sheets.

Costs incurred in connection with the issuance of noncontrolling interests, including direct and incremental costs associated with forming joint ventures and admitting third-party investors, are capitalized as equity offering costs.

Costs that are not directly attributable to the issuance of equity, such as fees associated with ongoing advisory, management, or other services, are expensed as incurred.

Recent Accounting Standards Not Yet Adopted.

In September 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-06, Intangibles—Goodwill and Other—Internal-Use Software, which simplifies the capitalization guidance by removing references to software development project stages and further updates so that the guidance considers various software development methods.

The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted.

The amendments in this update permit an entity to apply the new guidance using a prospective, retrospective or modified transition approach.

While we are currently evaluating the impact of this pronouncement, we do not expect it will have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, requiring all public business entities to provide additional disclosure of the nature of expenses included in the income statement.

This ASU is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis, with early adoption permitted.

While the adoption is not expected to have an impact on our financial statements, it is expected to result in incremental disclosures within the footnotes to our consolidated financial statements.

Underwriting commissions and offering costs have been reflected as a reduction of

additional paid-in capital on our consolidated balance sheets.

Costs incurred in connection with the issuance of

noncontrolling interests, including direct and incremental costs associated with forming joint ventures and admitting

third-party investors, are capitalized as equity offering costs.

Costs that are not directly attributable to the issuance

of equity, such as fees associated with ongoing advisory, management, or other services, are expensed as incurred.

Recent Accounting Standards Not Y et Adopted.

In September 2025, the Financial Accounting Standards Board

("FASB") issued Accounting Standards Update ("ASU") 2025-06, Intangibles—Goodwill and Other—Internal-Use

Software, which simplifies the capitalization guidance by removing references to software development project

stages and further updates so that the guidance considers various software development methods.

amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim

reporting periods within those annual reporting periods, with early adoption permitted.

The amendments in this

update permit an entity to apply the new guidance using a prospective, retrospective or modified transition

While we are currently evaluating the impact of this pronouncement, we do not expect it will have a

material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—

Expense Disaggregation Disclosures, requiring all public business entities to provide additional disclosure of the

nature of expenses included in the income statement.

This ASU is effective for fiscal years beginning after

December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis,

with early adoption permitted.

While the adoption is not expected to have an impact on our financial statements, it is

expected to result in incremental disclosures within the footnotes to our consolidated financial statements.

Supplemental Detail for Certain Components of Consolidated Balance Sheets (in thousands ):

Accounts receivable, net, consist of the following at:

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

Straight-line rent receivables, net

Client receivables, net

$ 1,117,143 $ 1,053,487

Lease intangible assets, net, consist of the following at:

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

In-place leases

1 unchanged sentence

Accumulated amortization of in-place leases

( 3,539,369 )

( 3,220,426 )

Accumulated amortization of above-market leases

Other items 2,124 2,168

( 1,034,398 )

Other assets, net, consist of the following at:

March 31, 2026 December 31, 2025

Loans receivable, net $ 2,672,184 $ 1,682,117

Financing receivables, net 1,544,128 1,574,574

Right of use asset - financing leases, net 808,043 827,644

June 30, 2026

December 31, 2025

Investment in preferred equity

Right of use asset - financing leases, net

Right of use asset - operating leases, net

Restricted escrow deposits 146,818 83,200

Prepaid expenses 101,187 76,207

Value-added tax receivable

Prepaid expenses

Derivative assets and receivables - at fair value

Restricted escrow deposits

Interest receivable

1 unchanged sentence

Corporate assets, net

Investment in sales type lease 6,224 6,206

Impounds related to mortgages payable

Non-refundable escrow deposits

Other items 95,906 89,864

$ 7,021,229 $ 5,895,700

Accounts payable and accrued expenses consist of the following at:

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

Notes payable - interest payable

Derivative liabilities and payables - at fair value

Property taxes payable 88,129 92,246

Accrued income taxes

Value-added tax payable

Property taxes payable

Accrued property expenses

Accrued income taxes 74,887 120,228

Accrued costs on properties under development

Mortgages, term loans, and credit line - interest payable

Other items 148,613 155,213

$ 953,204 $ 1,060,969

Lease intangible liabilities, net, consist of the following at:

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

Below-market leases

Accumulated amortization of below-market leases

$ 1,478,512 $ 1,493,958

Other liabilities consist of the following at:

March 31, 2026 December 31, 2025

Lease liability - operating leases $ 423,553 $ 429,675

June 30, 2026

December 31, 2025

Rent received in advance and other deferred revenue

Lease liability - operating leases

Lease liability - financing leases

Security deposits

Other items 38,712 15,696

$ 1,003,644 $ 1,066,809

Investments in Real Estate

Acquisitions of Real Estate

Below is a summary of our acquisitions for the three months ended March 31, 2026 (unaudited):

Properties Investment

($ in millions) Weighted Average

real estate 109 $ 578.1 10.1

Below is a summary of our acquisitions for the six months ended June 30, 2026 (unaudited):

($ in millions)

Weighted Average

Europe real estate

1 unchanged sentence

Real estate properties under development

real estate 20 $ 31.0 17.5

Europe real estate

Total real estate properties under development

189 $ 1,669.0 8.8

(1) Our clients occupying the new properties are 51.8 % retail, 48.1 % industrial, and 0.1 % other property types based on net operating income.

Approximately 45 % of the net operating income generated from acquisitions during the three months ended March 31, 2026 was from investment grade rated clients, their subsidiaries, or affiliated companies at the date of acquisition.

The aggregate purchase price, including properties acquired through takeout financing and reported in properties under development in the table above, was allocated as follows (in millions):

Approximately 48 % of the net operating income generated from acquisitions during the six months ended June 30, 2026 was from investment

grade rated clients, their subsidiaries, or affiliated companies at the date of acquisition.

The aggregate purchase price, including properties acquired through takeout financing and reported in properties

under development in the table above, was allocated as follows (in millions):

Acquisitions -

USD Acquisitions -

Sterling Acquisitions -

Land $ 128.8 £ 106.5 € 140.6

Acquisitions -

Buildings and improvements

Lease intangible assets (1)

83.8 47.0 62.3

Other assets (2)

Lease intangible liabilities (3)

( 9.5 ) ( 7.5 ) ( 19.7 )

Other liabilities (4)

Total $ 578.2 £ 337.7 € 496.2

(1) The weighted average amortization period for acquired lease intangible assets is 10.7 years .

(2) USD-denominated other assets consists entirely of $ 2.4 million of financing receivables allocated to sales-leaseback transactions.

(2) USD-denominated other assets consists entirely of $ 44.3 million of financing receivables allocated to sale -leaseback transactions.

(3) The weighted average amortization period for acquired lease intangible liabilities is 13.5 years.

(4) USD-denominated other liabilities consists entirely of $ 10.6 million deferred rent on certain below-market leases.

The aggregate Sterling-denominated purchase price of the assets acquired during the three months ended March 31, 2026 included $ 15.2 million contingent consideration obligations related to leasing activities for four U.K.

retail park properties acquired, all of which was deemed estimable and probable of payment and therefore was accrued as of March 31, 2026.

The properties acquired during the three months ended March 31, 2026 generated total revenue and net income of $ 5.4 million and $ 1.5 million, respectively.

The aggregate Sterling-denominated purchase price of the assets acquired during the six months ended June 30,

2026 included contingent consideration obligations related to leasing activities for four U.K.

retail park properties

acquired during this period.

At June 30, 2026 , we had accrued $ 11.5 million for remaining amounts deemed

probable and estimable.

The properties acquired during the six months ended June 30, 2026 generated total revenue and net income of

$ 49.8 million and $ 17.6 million , respectively.

Investments in Existing Properties

During the three months ended March 31, 2026, we capitalized costs of $ 22.7 million on existing properties in our portfolio, consisting of $ 19.8 million for building improvements, $ 2.8 million for re-leasing costs, and $ 0.1 million for recurring capital expenditures.

In comparison, during the three months ended March 31, 2025, we capitalized costs of $ 30.7 million on existing properties in our portfolio, consisting of $ 29.8 million for building improvements, $ 0.9 million for re-leasing costs, and less than $ 0.1 million for recurring capital expenditures.

During the six months ended June 30, 2026 , we capitalized costs of $ 81.0 million on existing properties in our

portfolio, consisting of $ 76.2 million for building improvements, $ 4.7 million for re-leasing cost s, and $ 0.1 million for

recurring capital expenditures.

In comparison, during the six months ended June 30, 2025 , we capitalized costs of

$ 62.2 million on existing properties in our portfolio, consisting of $ 59.1 million for building improvements, $ 2.9

million for re-leasing costs, and $ 0.2 million for recurring capital expenditures.

Properties with Existing Leases

The value of the in-place and above-market leases is recorded to 'Lease intangible assets, net' on our consolidated balance sheets, and the value of the below-market leases is recorded to 'Lease intangible liabilities, net' on our consolidated balance sheets.

The value of the in-place and above-market leases is recorded to ' Lease intangible assets, net ' on our consolidated

balance sheets , and the value of the below-market leases is recorded to ' Lease intangible liabilities, net ' on our

consolidated balance sheets .

The values of the in-place leases are amortized as depreciation and amortization expense.

The amounts amortized to expense for all of our in-place leases for the three months ended March 31, 2026 and 2025 were $ 204.3 million and $ 213.2 million, respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue in our consolidated statements of income and comprehensive income.

The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the three months ended March 31, 2026 and 2025 were $ 6.1 million and $ 9.7 million, respectively.

The following table presents the estimated impact during the next five years and thereafter related to the amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease intangibles as of March 31, 2026 (in thousands):

The amounts amortized

to expense for all of our in-place leases for the six months ended June 30, 2026 and 2025 were $ 413.7 million and

$ 453.5 million , respectively.

The values of the above-market and below-market leases are amortized over the term of the respective leases,

including any bargain renewal options, as an adjustment to rental revenue in our consolidated statements of income

and comprehensive income .

The amounts amortized as a net decrease to rental revenue for capitalized above-

market and below-market leases for the six months ended June 30, 2026 and 2025 were $ 15.0 million and $ 9.3

million , respectively.

The following table presents the estimated impact during the next five years and thereafter related to the

amortization of the above-market and below-market lease intangibles and the amortization of the in-place lease

intangibles as of June 30, 2026 (in thousands):

(decrease) to

rental revenue

2026 $ ( 31,831 ) $ 569,530

2027 ( 40,527 ) 657,519

2028 ( 31,297 ) 558,446

2029 ( 27,393 ) 481,356

2030 ( 15,224 ) 402,048

Thereafter 351,054 1,703,751

Total $ 204,782 $ 4,372,650

Gain on Sales of Real Estate

The following table summarizes our properties sold during the periods indicated below (dollars in millions):

Three months ended March 31,

Three months ended

Six months ended

Number of properties

2 unchanged sentences

Investments in Unconsolidated Entities

The following is a summary of our investments in unconsolidated entities for the periods indicated below (dollars in thousands):

Ownership % Number of Properties Carrying Amount (1) of Investment as of

Equity in earnings of unconsolidated entities

Three months ended March 31,

As of March 31, 2026

March 31, 2026

December 31, 2025

The following is a summary of our investments in unconsolidated entities for the periods indicated below (dollars in

Carrying Amount (1) of

Investment as of

Equity in earnings of

unconsolidated entities

Six months ended June 30,

As of June 30, 2026

Data Center Joint Venture (2)

80.0 % 2 $ 334,266 $ 293,073 $ 1,976 $ 3,674

Bellagio Las Vegas Joint Venture - Common Equity Interest (3)

21.9 % 1 248,328 253,625 695 683

Bellagio Las Vegas Joint Venture - Preferred Equity Interest (3)

n/a n/a 650,000 650,000 — —

Bellagio Las Vegas Joint

Venture - Common Equity

Bellagio Las Vegas Joint

Venture - Preferred Equity

Passport Park Joint Venture (4)

95.0 % 3 88,232 59,758 ( 2 ) —

Total investment in unconsolidated entities $ 1,320,826 $ 1,256,456 $ 2,669 $ 4,357

(1) As of March 31, 2026, the total carrying amount of the investments exceeded the underlying equity in net assets (i.e., basis difference) by $ 9.3 million.

This basis difference is primarily due to the capitalized interest related to the data center and Passport Park development joint ventures.

Total investment in

unconsolidated entities

(1) As of June 30, 2026 , the total carrying amount of the investments exceeded the underlying equity in net assets (i.e., basis difference) by $ 9.9

This basis difference is primarily due to the capitalized interest related to the data center and Passport Park development joint

(2) The joint venture with Digital Realty Trust, Inc.

is expanding the capacity of its two data centers for the existing client, and our pro-rata share of the estimated costs for this second phase of the development was $ 190.4 million as of March 31, 2026.

(3) During each of the three months ended March 31, 2026 and 2025, we recognized interest income of $ 13.0 million for 8.1 % preferential cumulative distributions, included within 'Other' revenue in our consolidated statements of income and comprehensive income.

The unconsolidated entity had total debt outstanding of $ 3.0 billion as of March 31, 2026, all of which was non-recourse to us with limited customary exceptions.

(4) As of March 31, 2026, we held a 95.0 % common equity interest in the joint venture with Trammell Crow Company ("TCC"), with $ 58.2 million in preferred equity.

is expanding the capacity of its two data centers for the existing client, and our pro-rata share of

the estimated costs for this second phase of the development was $ 177.7 million as of June 30, 2026 .

(3) During each of the six-month periods ended June 30, 2026 and 2025 , we recognized interest income of $ 26.1 million for 8.1 % preferential

cumulative distributions, included within ' Interest and dividend income on loans and preferred equity investments ' in our consolidated

statements of income and comprehensive income .

The unconsolidated entity had total debt outstanding of $ 3.0 billion as of June 30, 2026 , all

of which was non-recourse to us with limited customary exceptions.

(4) As of June 30, 2026 , we held a 95.0 % common equity interest in the joint venture with Trammell Crow Company ("TCC"), with $ 70.4 million in

preferred equity.

We have committed to investing an additional $ 60.1 million for development of three industrial facilities.

We have determined that we are not the primary beneficiary of this VIE because significant activities affecting economic performance are shared.

TCC is the managing member, and we do not have substantive kick-out rights.

We will continuously evaluate whether we are the primary beneficiary as power to direct significant activities can change during the joint venture's life.

Our maximum loss exposure is limited to our common and preferred equity investments and committed funding.

We have determined

that we are not the primary beneficiary of this VIE because significant activities affecting economic performance are shared.

managing member, and we do not have substantive kick-out rights.

We will continuously evaluate whether we are the primary beneficiary as

power to direct significant activities can change during the joint venture's life.

Our maximum loss exposure is limited to our common and

preferred equity investments and committed funding.

Investments in Loans and Financing Receivables

The following table presents information about our loans as of March 31, 2026 and December 31, 2025 (dollars in millions):

March 31, 2026

Loan Type Principal Balance Total Carrying Value (1)

Future Funding Commitments (2)

Weighted Average Term (Years) (3)

Weighted Average Interest Rate (4)

The following table presents information about our loans as of June 30, 2026 and December 31, 2025 (dollars in

June 30, 2026

Total Carrying

Future Funding

Commitments (2)

Interest Rate (4)

Secured Loans (5)

2 unchanged sentences

Unsecured and Mezzanine Loans (6)

Total $ 2,730.4 $ 2,672.2 $ 390.1 3.9 8.4 %

December 31, 2025

Loan Type Principal Balance Total Carrying Value (1)

Future Funding Commitments (2)

Weighted Average Term (Years) (3)

Weighted Average Interest Rate (4)

Total Carrying

Future Funding

Commitments (2)

Interest Rate (4)

Secured Loans

1 unchanged sentence

Unsecured and Mezzanine Loans

Total $ 1,721.3 $ 1,682.1 $ 34.0 4.5 8.8 %

(1) Total carrying value includes unamortized loan origination costs and allowances for credit losses.

Total carrying amount excludes interest receivable of $ 40.3 million and $ 27.8 million as of March 31, 2026 and December 31, 2025, respectively, which is presented in 'Other assets, net' on our consolidated balance sheets.

(2) Our future funding commitments are subject to our borrowers’ compliance with the financial covenants and other applicable provisions of each respective loan agreement.

Total carrying amount excludes interest

receivable of $ 38.8 million and $ 27.8 million as of June 30, 2026 and December 31, 2025 , respectively, which is presented in 'Other assets,

net' on our consolidated balance sheets.

(2) Our future funding commitments are subject to our borrowers’ compliance with the financial covenants and other applicable provisions of

each respective loan agreement.

(3) Based on original contractual maturity date assuming no extension options are exercised.

(4) The weighted average interest rate is based on outstanding principal balances and interest rates in place as of March 31, 2026 and December 31, 2025.

The following table summarizes the activity within loans receivable, net for the three months ended March 31, 2026 (in millions):

(4) The weighted average interest rate is based on outstanding principal balances and interest rates in place as of June 30, 2026 and December

(5) Represents loans that have senior ranking security interests in certain assets pledged by borrowers, including material bank accounts,

receivables, real property, or equity securities, or a combination of such assets.

(6) Our investments in unsecured and mezzanine loans represent loans whose proceeds are being used by borrowers to fund data center and

industrial investments.

The following table summarizes the activity within loans receivable, net for the three and six months ended June 30,

2026 (in millions):

Loans receivable, net as of March 31, 2026

Principal fundings

Interest drawn on loans

Accretion of original issue cost

Change in allowance for credit losses

Foreign currency remeasurement

Loans receivable, net as of June 30, 2026

Loans receivable, net as of December 31, 2025

4 unchanged sentences

Foreign currency remeasurement

Loans receivable, net as of March 31, 2026

Loans receivable, net as of June 30, 2026

Financing Receivables

The following table presents information about our investments in sale-leaseback transactions accounted for as financing receivables in accordance with ASC 842, Leases, as of March 31, 2026 and December 31, 2025 (dollars in millions):

The following table presents information about our investments in sales type and direct financing leases and sale-

leaseback transactions accounted for as financing receivables in accordance with ASC 842, Leases, as of June 30,

2026 and December 31, 2025 (dollars in millions):

Carrying Value as of

Maturity March 31, 2026 December 31, 2025

Financing receivables, net 2026 - 2050

$ 1,544.1 $ 1,574.6

Total $ 1,544.1 $ 1,574.6

June 30, 2026

Sale-leaseback transactions accounted for as financing receivables (1)

Net investment in sales type and direct financing leases

(1) Amounts represent the portion of the purchase price allocated to above-market lease terms in sale-leaseback transactions, representing an

off-market adjustment, net of repayments.

For further information, see note 1 , Summary of Significant Accounting Policies .

Allowance for Credit Losses

The following table summarizes the activity within the allowance for credit losses related to loans and financing receivable for the three months ended March 31, 2026 and March 31, 2025 (in millions):

Three months ended March 31, 2026 Loans Receivable Financing Receivable Unfunded Loan Commitments Total

The following table summarizes the activity within the allowance for credit losses related to loans and financing

receivable for the three and six months ended June 30, 2026 and June 30, 2025 (in millions):

Three months ended June 30, 2026

Allowance for credit losses as of March 31, 2026

Provisions for credit losses (1)

Write-offs (2)

Foreign currency remeasurement

Allowance for credit losses as of June 30, 2026

Six months ended June 30, 2026

Allowance for credit losses as of December 31, 2025

$ 30.5 $ 78.4 $ — $ 108.9

Provisions for credit losses (1)

19.2 17.0 2.9 39.1

Write-offs (2)

— ( 69.9 ) — ( 69.9 )

Foreign currency remeasurement

Allowance for credit losses as of June 30, 2026

Three months ended June 30, 2025

Allowance for credit losses as of March 31, 2025

$ 49.2 $ 25.5 $ 2.9 $ 77.6

Three Months Ended March 31, 2025 Loans Receivable Financing Receivable Unfunded Loan Commitments Total

Provisions for credit losses

Foreign currency remeasurement

Allowance for credit losses as of June 30, 2025

Six months ended June 30, 2025

Allowance for credit losses as of December 31, 2024

$ 12.3 $ 99.2 $ — $ 111.5

Provisions for credit losses

Foreign currency remeasurement

Allowance for credit losses as of March 31, 2025

$ 14.1 $ 116.9 $ — $ 131.0

(1) For the three months ended March 31, 2026, the provisions for credit losses on loans receivable were primarily attributable to initial expected credit losses on loans acquired during the three months ended March 31, 2026.

(2) For the three months ended March 31, 2026, write-offs were related to fully reserved financing receivables written off during the period.

Allowance for credit losses as of June 30, 2025

(1) The provisions for credit losses on loans receivable were primarily attributable to initial expected credit losses on loans acquired or originated

during the three and six months ended June 30, 2026 .

For the three months ended June 30, 2026 , the increase was partially offset by

favorable changes in estimated credit losses for existing loans .

(2) For the three and six months ended June 30, 2026 , write-offs were primarily related to fully reserved financing receivables written off during the

Credit Facilities and Commercial Paper Programs

RI Credit Facilities

We have $ 4.0 billion unsecured multicurrency revolving credit facilities, which include (a) a $ 2.0 billion unsecured multicurrency revolving credit facility, consisting of two tranches, that will mature in April 2027 and (b) a $ 2.0 billion unsecured multicurrency revolving credit facility, consisting of two tranches, that will mature in April 2029 (collectively, the “RI Credit Facilities”).

The RI Credit Facilities also include two six-month extensions for each facility, which can be exercised at our option.

The RI Credit Facilities allow us to borrow (a) under the two-year revolving credit facility (i) in up to four currencies (including USD) under a $ 1.5 billion tranche thereunder and (ii) in up to 15 currencies (including USD) under a $ 500.0 million tranche thereunder, and (b) under the four-year revolving credit facility (i) in up to four currencies (including USD) under a $ 1.5 billion tranche thereunder and (ii) in up to 15 currencies (including USD) under a $ 500.0 million tranche thereunder.

The aggregate capacity of the RI Credit Facilities can be increased to up to $ 5.0 billion pursuant to an accordion expansion feature, which is subject to obtaining lender commitments.

Under the RI Credit Facilities, our investment grade credit ratings as of March 31, 2026 provide for (i) USD borrowings at the Secured Overnight Financing Rate (“SOFR”) plus 0.725 % and (ii) British Pound Sterling ("GBP") borrowings at the SONIA plus 0.725 %, and (iii) Euro ("EUR") borrowings at Euro Interbank Offered Rate (“EURIBOR”) plus 0.725 %.

A revolving credit facility commitment fee of 0.125 % is payable on the total commitment amount.

The credit agreement also provides flexibility to elect different interest rate tenors or daily rate options for each currency tranche.

As of March 31, 2026, we had a borrowing capacity of $ 2.2 billion available on our RI Credit Facilities (subject to customary conditions to borrowing) and an outstanding balance of $ 1.8 billion, including £ 606.5 million GBP and € 841.0 million EUR borrowings.

As of December 31, 2025, we had a borrowing capacity of $ 2.7 billion and an outstanding balance of $ 1.3 billion, including £ 597.0 million GBP and € 444.0 million EUR borrowings.

The weighted average interest rate on outstanding borrowings under our RI Credit Facilities was 3.3 % during the three months ended March 31, 2026.

The weighted average interest rate on outstanding borrowings under our previous revolving credit facility was 4.5 % during the three months ended March 31, 2025.

As of March 31, 2026, the weighted average interest rate on outstanding borrowings under our RI Credit Facilities was 3.5 %.

As of March 31, 2026, origination costs of $ 16.7 million for RI Credit Facilities are included in 'Other assets, net', as compared to $ 19.0 million as of December 31, 2025, on our consolidated balance sheets.

These costs are being amortized over the remaining term of our RI Credit Facilities.

We have $ 4.0 billion unsecured multicurrency revolving credit facilities, which include (a) a $ 2.0 billion unsecured

multicurrency revolving credit facility, consisting of two tranches, th at will mature in April 2027 and (b) a $ 2.0 billion

unsecured multicurrency revolving credit facility, consisting of two tranches, that will mature in April 2029

(collectively, the “RI Credit Facilities”).

The RI Credit Facilities also include two six -month extensions for each facility,

which can be exercised at our option.

The RI Credit Facilities allow us to borrow (a) under the two -year revolving credit facility (i) in up to four currencies

(including USD) under a $ 1.5 billion tranche thereunder and (ii) in up to 15 currencies (including USD) under a

$ 500.0 million tranche thereunder, and (b) under the four -year revolving credit facility (i) in up to four currencies

(including USD) under a $ 1.5 billion tranche thereunder and (ii) in up to 15 currencies (including USD) under a

$ 500.0 million tranche thereunder.

The aggregate capacity of the RI Credit Facilities can be increased to up to $ 5.0

billion pursuant to an accordion expansion feature, which is subject to obtaining lender commitments.

Under the RI Credit Facilities, our investment grade credit ratings as of June 30, 2026 provide for (i) USD

borrowings at the Secured Overnight Financing Rate (“SOFR”) plus 0.725 % and (ii) British Pound Sterling ("GBP")

borrowings at the Sterling Overnight Indexed Average (“SONIA”) plus 0.725 % , and (iii) Euro ("EUR") borrowings at

Euro Interbank Offered Rate (“EURIBOR”) plus 0.725 % .

A revolving credit facility commitment fee of 0.125 % is

payable on the total commitment amount.

The credit agreement also provides flexibility to elect different interest rate

tenors or daily rate options for each currency tranche.

As of June 30, 2026 , we had a borrowing capacity of $ 3.0 billion available on our RI Credit Facilities (subject to

customary conditions to borrowing) and an outstanding balance of $ 1.0 billion , including £ 189.0 million GBP and

€ 692.0 million EUR borrowings.

As of December 31, 2025 , we had a borrowing capacity of $ 2.7 billion and an

outstanding balance of $ 1.3 billion , including £ 597.0 million GBP and € 444.0 million EUR borrowings.

The weighted average interest rate on outstanding borrowings under our RI Credit Facilities was 3.3 % during the six

months ended June 30, 2026 .

The weighted average interest rate on outstanding borrowings was 4.3 % during the

six months ended June 30, 2025 .

As of June 30, 2026 , the weighted average interest rate on outstanding

borrowings under our RI Credit Facilities was 3.3 % .

As of June 30, 2026 , origination costs of $ 14.3 million for RI Credit Facilities are included in 'Other assets, net', as

compared to $ 19.0 million as of December 31, 2025 , on our consolidated balance sheets.

These costs are being

amortized over the remaining term of our RI Credit Facilities.

In July 2026, we amended our RI Credit Facilities.

For further details, see note 19 , Subsequent Events .

Fund Credit Facilities

The Fund has a $ 1.38 billion unsecured credit facility, which provides for (a) up to $ 1.0 billion unsecured revolving credit facility and (b) up to $ 380.0 million unsecured delayed draw term loan which is available to be drawn for twelve months after April 29, 2025 (the "Closing Date").

In April 2026, the availability period for the delayed draw term loan was extended to October 30, 2026 (collectively, the “Fund Credit Facilities”).

The revolving credit facility under the Fund Credit Facilities matures in April 2029 and the delayed draw term loan under the Fund Credit Facilities matures in April 2028.

The Fund Credit Facilities also include two six-month extensions for each facility, which can be exercised at our option.

The aggregate amount under the Fund Credit Facilities can be increased to up to $ 2.0 billion pursuant to an accordion expansion feature, which is subject to obtaining lender commitments.

Borrowings under the Fund Credit Facilities bear interest at one-month term SOFR plus 1.050 %.

A revolving credit facility commitment fee of 0.150 % is payable on the total commitment amount.

In addition, a commitment fee of 0.20 % is payable on undrawn delayed draw term loan commitments.

As of March 31, 2026, we had a borrowing capacity of $ 1.3 billion available on our Fund Credit Facilities (subject to customary conditions to borrowing) and an outstanding balance of $ 125.0 million under the unsecured revolving credit facility.

As of December 31, 2025, we had a borrowing capacity of $ 1.2 billion and an outstanding balance of $ 182.0 million.

The weighted average interest rate on outstanding borrowings under our Fund Credit Facilities was 5.0 % during the three months ended March 31, 2026.

As of March 31, 2026, the weighted average interest rate on outstanding borrowings under our Fund Credit Facilities was 4.7 %.

As of March 31, 2026, origination costs of $ 5.7 million for the Fund Credit Facilities are included in 'Other assets, net' as compared to $ 6.2 million as of December 31, 2025, on our consolidated balance sheets, and are being amortized over the remaining term of the facilities.

An additional $ 3.0 million was allocated to the delayed draw term loan arrangement and will not be amortized until the loan is drawn.

The Fund has a $ 1.38 billion unsecured credit facility, which provides for (a) up to $ 1.0 billion unsecured revolving

credit facility and (b) up to $ 380.0 million unsecured delayed draw term loan (collectively, the “Fund Credit

Facilities”) .

During the second quarter of 2026 , the Fund drew all $ 380.0 million available under its unsecured

delayed draw term loan and used the proceeds to repay borrowings under its unsecured revolving credit facility.

further details on the delayed draw term loan, see note 7, Term Loans .

The revolving credit facility under the Fund

Credit Facilities matures in April 2029 and includes two six -month extensions, which can be exercised at our option.

The amount under the unsecured revolving credit facility can be increased to up to $ 2.0 billion pursuant to an

accordion expansion feature, which is subject to obtaining lender commitments.

Borrowings under the unsecured revolving credit facility bear interest at one-month term SOFR plus 1.050 % .

revolving credit facility commitment fee of 0.150 % is payable on the total commitment amount.

As of June 30, 2026 , we had available borrowing capacity of $ 718.5 million under our unsecured revolving credit

facility (subject to customary conditions to borrowing) and an outstanding balance of $ 281.5 million .

As of December

31, 2025 , we had available borrowing capacity under our Fund Credit Facilities of $ 1.2 billion and an outstanding

balance of $ 182.0 million , which included the delayed draw term loan until fully drawn in the second quarter of 2026.

The weighted average interest rate on outstanding borrowings under our unsecured revolving credit facility was

4.8 % during the six months ended June 30, 2026 .

As of June 30, 2026 , the weighted average interest rate on

outstanding borrowings under our unsecured revolving credit facility was 4.7 % .

As of June 30, 2026 , origination costs of $ 5.3 million for the unsecured revolving credit facility are included in 'Other

assets, net' as compared to $ 6.2 million as of December 31, 2025 , on our consolidated balance sheets , and are

being amortized over the remaining term of the facility.

Prior to the second quarter of 2026, origination costs related

to the Fund Credit Facilities included costs for the delayed draw term loan.

Commercial Paper Programs

We have a USD-denominated unsecured commercial paper program, under which we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding of $ 1.5 billion, as well as a EUR-denominated unsecured commercial paper program, which permits us to issue additional unsecured commercial notes up to a maximum aggregate amount of $ 1.5 billion (or foreign currency equivalent).

Our EUR-denominated unsecured commercial paper program may be issued in USD or various foreign currencies, including but not limited to, EUR, GBP, Swiss Francs, Yen, Canadian Dollars, and Australian Dollars, in each case, pursuant to customary terms in the European commercial paper market.

The commercial paper ranks pari passu in right of payment with all of our other unsecured senior indebtedness outstanding, exclusive of unexchanged bonds from our merger with VEREIT, Inc.

in 2021 and unexchanged Spirit Realty Capital, Inc.

(“Spirit”) bonds, including borrowings under our revolving credit facilities, our term loans and our outstanding senior unsecured notes (and is structurally subordinated to all our subsidiary debt).

Proceeds from commercial paper borrowings are used for general corporate purposes.

As of March 31, 2026, the balance of borrowings outstanding under our commercial paper programs totaled $ 414.9 million, including € 260.0 million of EUR borrowings, $ 96.0 million of USD borrowings, and £ 15.0 million of GBP borrowings, compared to $ 516.8 million outstanding commercial paper borrowings, including € 407.0 million of EUR borrowings and $ 39.0 million of USD borrowings, as of December 31, 2025.

The weighted average interest rate on outstanding borrowings under our commercial paper programs was 2.7 % and 3.3 % for the three months ended March 31, 2026 and 2025, respectively.

We use our revolving credit facilities as a liquidity backstop for the repayment of the notes issued under the commercial paper programs.

We have a USD-denominated unsecured commercial paper program, under which we may issue unsecured

commercial paper notes up to a maximum aggregate amount outstanding of $ 1.5 billion , as well as a EUR-

denominated unsecured commercial paper program, which permits us to issue additional unsecured commercial

notes up to a maximum aggregate amount of $ 1.5 billion (or foreign currency equivalent).

Our EUR-denominated

unsecured commercial paper program may be issued in USD or various foreign currencies, including but not limited

to, EUR, GBP, Swiss Francs, Yen, Canadian Dollars, and Australian Dollars, in each case, pursuant to customary

terms in the European commercial paper market.

The commercial paper ranks pari passu in right of payment with all of our other unsecured senior indebtedness

outstanding, exclusive of unexchanged bonds from our merger with VEREIT, Inc.

in 2021 and unexchanged Spirit

Realty Capital, Inc.

(“Spirit”) bonds, including borrowings under our revolving credit facilities, our term loans and our

outstanding senior unsecured notes (and is structurally subordinated to all our subsidiary debt).

Proceeds from

commercial paper borrowings are used for general corporate purposes.

As of June 30, 2026 , the balance of borrowings outstanding under our commercial paper programs totaled $ 1.4

billion , including $ 961.1 million of USD borrowings and € 421.0 million of EUR borrowings, compared to

$ 516.8 million outstanding commercial paper borrowings, including € 407.0 million of EUR borrowings and $ 39.0

million of USD borrowings, as of December 31, 2025 .

The weighted average interest rate on outstanding borrowings

under our commercial paper programs was 3.0 % for each of the six months ended June 30, 2026 and 2025 .

use our revolving credit facilities as a liquidity backstop for the repayment of the notes issued under the commercial

paper programs.

The commercial paper borrowings generally carry a term of less than a year.

We regularly review our credit facilities and commercial paper programs and may seek to extend, renew, or replace our credit facilities and commercial paper programs, to the extent we deem appropriate.

In July 2026, we amended our USD-denominated and EUR-denominated unsecured commercial paper programs.

For further details, see note 19 , Subsequent Events .

Financial Covenants

Our credit facilities are subject to various leverage and interest coverage ratio limitations, and as of March 31, 2026, we were in compliance with the covenants under our credit facilities.

In March 2026, we closed a $ 693.9 million unsecured term loan due January 2036 at a fixed rate of 4.91 % and executed a cross-currency swap on $ 500.0 million of proceeds for approximately € 431.0 million, achieving an effective blended borrowing rate of 4.34 %.

As of March 31, 2026, the outstanding principal balance was $ 693.9 million.

Our term loan agreement governing our $ 1.5 billion multi-currency term loan provides for a £ 900.0 million Sterling-denominated term loan facility that will initially mature in January 2028, before giving effect to one twelve-month extension option.

As of March 31, 2026, we had an outstanding balance of $ 1.2 billion.

Our A3/A- credit ratings provide for a borrowing rate of 80 basis points over the applicable benchmark rate, which includes adjusted SOFR for USD-denominated loans and adjusted SONIA for GBP-denominated loans.

In conjunction with the closing, we executed variable-to-fixed interest rate swaps, which fix the weighted average per annum interest rate at 4.3 % over the two-year term.

In January 2024, in connection with the merger with Spirit (the "Merger"), we entered into an amended and restated term loan agreement that replaced Spirit's then-existing term loans with various lenders.

Pursuant to the agreement, we borrowed an aggregate of $ 800.0 million, $ 300.0 million of which was repaid upon its maturity in August 2025.

The remaining $ 500.0 million, due August 2027, is subject to interest rate swaps that fix the effective interest rate at 3.3 %.

We also entered into an amended and restated term loan agreement pursuant to which we borrowed $ 500.0 million, which was repaid upon its maturity in June 2025.

Deferred financing costs were $ 12.9 million as of March 31, 2026 and are included net of the term loans' principal balance, as compared to $ 9.4 million as of December 31, 2025 on our consolidated balance sheets.

These costs are being amortized over the remaining term of the term loans.

As of March 31, 2026, we were in compliance with the covenants contained in the term loans.

Our credit facilities are subject to various leverage and interest coverage ratio limitations, and as of June 30, 2026 ,

we were in compliance with the covenants under our credit facilities.

2026 Term Loan Facility

In March 2026, we closed a $ 693.9 million unsecured term loan due January 2036 at a fixed rate of 4.9 % (the "2026

Term Loan Facility") and executed a cross-currency swap on $ 500.0 million of proceeds for approximately

€ 431.0 million , achieving an effective blended borrowing rate of 4.34 % .

As of June 30, 2026 , the outstanding

principal balance was $ 703.0 million .

2026 Delayed Draw Term Loan

During the three months ended June 30, 2026 , the Fund fully drew on its $ 380.0 million unsecured delayed draw

term loan under the Fund Credit Facilities.

The delayed draw term loan matures in April 2028, includes four six -

month extensions , which can be exercised at our option, and is subject to interest rate swaps that fix the effective

interest rate at 4.92 % .

2025 Term Loan Facility

Our term loan agreement governing our multi-currency term loan provides for a £ 900.0 million Sterling-denominated

term loan facility that will initially mature in January 2028, before giving effect to one twelve -month extension option.

As of June 30, 2026 , we had an outstanding balance of $ 1.2 billion .

Our A3/A- credit ratings provide for a borrowing

rate of 80 basis points over the applicable benchmark rate, which includes adjusted SOFR for USD-denominated

loans and adjusted SONIA for GBP-denominated loans.

In conjunction with the closing, we executed variable-to-

fixed interest rate swaps, which fix the weighted average per annum interest rate at 4.3 % over the two -year term.

2024 Term Loan Facility

In January 2024, in connection with the merger with Spirit (the "Merger"), we entered into an amended and restated

term loan agreement that replaced Spirit's then-existing term loans with various lenders.

As of June 30, 2026 , we

had an outstanding balance of $ 500.0 million , due August 2027, which is subject to interest rate swaps that fix the

effective interest rate at 3.3 % .

Deferred Financing Costs

Deferred financing costs were $ 14.5 million as of June 30, 2026 and are included net of the term loans' principal

balance, as compared to $ 9.4 million as of December 31, 2025 on our consolidated balance sheets .

are being amortized over the remaining term of the term loans .

As of June 30, 2026 , we were in compliance with the covenants contained in the term loans.

Notes Payable

As of March 31, 2026, our senior unsecured notes and bonds are USD-denominated, GBP-denominated, and EUR-denominated.

As of June 30, 2026 , o ur senior unsecured notes and bonds are USD-denominated , GBP-denominated, and EUR-

Foreign-denominated notes are converted at the applicable exchange rate on the balance sheet date.

1 unchanged sentence

Carrying Value (USD) as of

Maturity Dates Principal (Currency Denomination) March 31, 2026 December 31, 2025

Maturity Dates

Denomination)

June 30, 2026

December 31, 2025

5.050 % Notes due 2026

3 unchanged sentences

4.875 % Notes due 2026

June 1, 2026 $ 599,997 599,997 599,997

4.450 % Notes due 2026

22 unchanged sentences

December 15, 2028

3.500 % Convertible Notes due 2029 (2)

3.500 % Convertible Notes

January 15, 2029

3 unchanged sentences

February 15, 2029

Carrying Value (USD) as of

Maturity Dates Principal (Currency Denomination) March 31, 2026 December 31, 2025

3.250 % Notes due 2029

13 unchanged sentences

4.875 % Notes due 2030 (1)

July 6, 2030 € 550,000 632,742 645,711

1.625 % Notes due 2030 (1)

4 unchanged sentences

February 15, 2031

Carrying Value (USD) as of

Maturity Dates

Denomination)

June 30, 2026

December 31, 2025

3.375 % Notes due 2031 (1)

15 unchanged sentences

4.750 % Notes due 2033

April 15, 2033

1.750 % Notes due 2033 (1)

July 13, 2033

4 unchanged sentences

2.730 % Notes due 2034

May 20, 2034 £ 315,000 416,329 423,864

5.125 % Notes due 2034 (1)

July 6, 2034 € 550,000 632,742 645,711

5.875 % Bonds due 2035

18 unchanged sentences

Unamortized net discounts and deferred financing costs

$ 24,911,912 $ 25,031,947

(1) Interest paid annually.

1 unchanged sentence

(2) Please refer to Convertible Bond Issuance below for more details.

The following table summarizes the maturity of our notes and bonds payable as of March 31, 2026, excluding unamortized net discounts, deferred financing costs (dollars in millions):

Year of Maturity Principal

2026 $ 1,550.0

Thereafter 12,699.1

Total $ 25,228.6

As of March 31, 2026, the weighted average interest rate on our notes and bonds payable was 3.9 % and the weighted average remaining years until maturity was 5.9 years.

Interest incurred on the notes and bonds was $ 244.3 million and $ 219.9 million for the three months ended March 31, 2026 and 2025, respectively.

The following table summarizes the maturity of our notes and bonds payable as of June 30, 2026 , excluding

unamortized net discounts , deferred financing costs (dollars in millions):

Year of Maturity

As of June 30, 2026 , the weighted average interest rate on our notes and bonds payable was 3.9 % and the

weighted average remaining years until maturity was 5.8 years.

Interest incurred on the notes and bonds was $ 250.3 million and $ 229.4 million for the three months ended June 30,

2026 and 2025 , respectively, and $ 494.7 million and $ 449.3 million for the six months ended June 30, 2026 and

2025 , respectively.

Our outstanding notes and bonds are unsecured;

accordingly, we have not pledged any assets as collateral for these or any other obligations.

accordingly, we have not pledged any assets as collateral for

these or any other obligations.

The notes and bonds contain various covenants, including:

(i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60 %;

(ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40 %;

(iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times;

and (iv) the maintenance at all times of total unencumbered assets not less than 150 % of our outstanding unsecured debt.

As of March 31, 2026, we were in compliance with these covenants.

(i) a limitation on incurrence of any debt which would

cause our debt to total adjusted assets ratio to exceed 60 % ;

(ii) a limitation on incurrence of any secured debt which

would cause our secured debt to total adjusted assets ratio to exceed 40 % ;

(iii) a limitation on incurrence of any

debt which would cause our debt service coverage ratio to be less than 1.5 times;

and (iv) the maintenance at all

times of total unencumbered assets not less than 150 % of our outstanding unsecured debt.

As of June 30, 2026 , we

were in compliance with these covenants.

Convertible Bond Issuance

In January 2026, we issued $ 862.5 million principal amount of 3.500 % convertible senior notes due January 2029 in a private offering, resulting in net proceeds of approximately $ 845.1 million.

We used approximately $ 101.9 million of the net proceeds to repurchase approximately 1.8 million shares of our common stock concurrently with the pricing of the offering.

The notes are senior, unsecured obligations of Realty Income and accrue interest at a rate of 3.500 % per annum, payable semi-annually in arrears.

The notes will mature on January 15, 2029, unless earlier repurchased, redeemed or converted.

Before October 15, 2028, noteholders have the right to convert their notes only upon the occurrence of certain events, including when the Company's stock price exceeds 130 % of the applicable conversion price for a specified period, or upon the occurrence of certain corporate events, including a fundamental change.

From and after October 15, 2028, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date.

Upon conversion, we are required to settle the principal amount in cash and may, at our election, settle any conversion premium in cash, shares of our common stock, or a combination thereof, based on the applicable conversion rate.

The initial conversion rate is 14.4051 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $ 69.42 per share of common stock.

The conversion rate will be subject to adjustment upon the occurrence of certain events, including specified make-whole fundamental change events as defined in the indenture.

In January 2026, we issued $ 862.5 million principal amount of 3.500 % convertible senior notes due January 2029 in

a private offering, resulting in net proceeds of approximately $ 845.1 million .

We used approximately $ 101.9 million

of the net proceeds to repurchase approximately 1.8 million shares of our common stock concurrently with the

pricing of the offering.

The notes are senior, unsecured obligation s of Realty Income and accrue interest at a rate of

3.500 % per annum, payable semi-annually in arrears.

The notes will mature on January 15, 2029, unless earlier

repurchased, redeemed or converted.

Before October 15, 2028, noteholders have the right to convert their notes

only upon the occurrence of certain events, including when the Company's stock price exceeds 130 % of the

applicable conversion price for a specified period, or upon the occurrence of certain corporate events, including a

fundamental change.

From and after October 15, 2028, noteholders may convert their notes at any time at their

election until the close of business on the second scheduled trading day immediately before the maturity date.

conversion, we are required to settle the principal amount in cash and may, at our election, settle any conversion

premium in cash, shares of our common stock, or a combination thereof, based on the applicable conversion rate.

The initial conversion rate is 14.4051 shares of common stock per $1,000 principal amount of notes, which

represents an initial conversion price of approximately $ 69.42 per share of common stock.

The conversion rate will

be subject to adjustment upon the occurrence of certain events, including specified make-whole fundamental

change events as defined in the indenture.

Note Issuances

During the six months ended June 30, 2026 , we issued the following notes (in millions):

2026 Issuance

Date of Issuance

Maturity Date

Price of par value

Effective yield to

4.750 % Notes

In July 2026, we issued € 600.0 million of 3.625 % senior unsecured notes due July 2032 .

See note 19, Subsequent

Events, to the consolidated financial statements for further details.

Note Repayments

During the three months ended March 31, 2026, we repaid the following notes, plus accrued and unpaid interest, upon maturity:

2026 Repayments Date of Issuance Maturity Date Principal amount

During the six months ended June 30, 2026 , we repaid the following notes, plus accrued and unpaid interest, upon

2026 Repayments

Date of Issuance

Maturity Date

Principal amount

(in millions)

5.050 % Notes

January 2023 January 2026 $ 500.0

0.750 % Notes

December 2020 March 2026 $ 325.0

December 2020

4.875 % Notes

Noncontrolling Interests

As of March 31, 2026, we have 14 entities with noncontrolling interests that we consolidate, including the Fund, Apollo, Realty Income, L.P., and interests in consolidated property partnerships not wholly-owned by us.

We have an open-end, perpetual life private fund, which is consolidated by Realty Income.

In March 2026, we closed our cornerstone equity capital raise round, securing $ 1.7 billion in commitments from third-party institutional investors, of which $ 167.5 million was committed during the three months ended March 31, 2026.

During the same period, we called $ 638.0 million of capital.

As of March 31, 2026, we owned approximately 38.5 % of the outstanding limited partnership interests in the Fund.

In March 2026, we established our Managed Insurance and Retirement Annuity investment platform as a vehicle to pursue various co-investment opportunities with institutional investors.

On March 31, 2026, we completed the formation of MDC Mercury 2604 Venture, LLC (the "Apollo JV") and entered into an Amended and Restated Limited Liability Company Agreement (the “JV Agreement”) with Apollo in connection with our Managed Insurance and Retirement Annuity strategic initiative.

Pursuant to the JV Agreement, we contributed 492 net lease properties in exchange for 51,000,000 Class A Shares in the Apollo JV, and Apollo contributed $ 1.0 billion in cash in exchange for a noncontrolling equity interest of 49,000,000 Class B Shares in the Apollo JV (such contributions by Realty Income and Apollo, collectively, the "Apollo JV Transaction").

The Apollo JV is a variable interest entity ("VIE") under ASC 810 because the decision-making authority of the Manager (our wholly owned subsidiary, Realty Income Property Management Co I, LLC) is not conveyed through an equity interest, and the equity holders as a group therefore lack the power to direct the activities that most significantly affect the Apollo JV's economic performance.

We consolidate the Apollo JV as its primary beneficiary because we have both (i) the power to direct the activities that most significantly affect its economic performance through our role as the sole exclusive Manager that is exercisable independent of our equity ownership and (ii) the obligation to absorb losses and right to receive benefits that could potentially be significant to the Apollo JV through our 51 % equity interest and other contractual arrangements.

The Class B Shares are classified as permanent equity (noncontrolling interest) on our consolidated balance sheet because all redemption features are solely within our control.

The Apollo JV Transaction was accounted for as an issuance of noncontrolling interest in a consolidated subsidiary without a loss of control.

As of June 30, 2026 , we have 13 entities with noncontrolling interests that we consolidate, including the Fund,

Apollo, Realty Income, L.P., and interests in consolidated property partnerships not wholly-owned by us.

The Fund is an open-end, perpetual life private fund, which is consolidated by Realty Income.

In March 2026, we

closed our cornerstone equity capital raise round, securing $ 1.7 billion in commitments from third-party institutional

investors, of which $ 167.5 million was committed during the six months ended June 30, 2026 .

During the same

period, we called $ 948.0 million of capital.

As of June 30, 2026 , we owned approximately 26.8 % of the outstanding

limited partnership interests in the Fund.

In March 2026, we established our Managed Insurance and Retirement Annuity investment platform as a vehicle to

pursue various co-investment opportunities with institutional investors.

On March 31, 2026, we completed the

formation of MDC Mercury 2604 Venture, LLC (the "Apollo JV") and entered into an Amended and Restated Limited

Liability Company Agreement (the “JV Agreement”) with Apollo in connection with our Managed Insurance and

Retirement Annuity strategic initiative.

Pursuant to the JV Agreement, we contributed 492 net lease properties in

exchange for 51,000,000 Class A Shares in the Apollo JV, and Apollo contributed $ 1.0 billion in cash in exchange for

a noncontrolling equity interest of 49,000,000 Class B Shares in the Apollo JV (such contributions by Realty Income

and Apollo, collectively, the "Apollo JV Transaction").

The Apollo JV is a variable interest entity ("VIE") under ASC 810 because the decision-making authority of the

Manager (our wholly owned subsidiary, Realty Income Property Management Co I, LLC) is not conveyed through an

equity interest, and the equity holders as a group therefore lack the power to direct the activities that most

significantly affect the Apollo JV's economic performance.

We consolidate the Apollo JV as its primary beneficiary

because we have both (i) the power to direct the activities that most significantly affect its economic performance

through our role as the sole exclusive Manager that is exercisable independent of our equity ownership and (ii) the

obligation to absorb losses and right to receive benefits that could potentially be significant to the Apollo JV through

our 51 % equity interest and other contractual arrangements.

The Class B Shares are classified as permanent equity

(noncontrolling interest) on our consolidated balance sheet because all redemption features are solely within our

The Apollo JV Transaction was accounted for as an issuance of noncontrolling interest in a consolidated subsidiary

without a loss of control.

We received $ 1.0 billion for Apollo’s initial capital contribution.

The carrying amount of Apollo's 49 % share of the net assets was $ 778.3 million, which was recognized as noncontrolling interest, with the difference of $ 221.7 million recorded as an increase to additional paid-in capital ("APIC").

Direct and incremental transaction costs of $ 20.6 million were recorded as a reduction of APIC.

The JV Agreement provides for, among other things, quarterly distributions of available cash flow to the Apollo JV’s members.

Prior to Apollo achieving the Target IRR (as defined in the JV Agreement), the Class B Member will receive a default allocation of 55 % of available cash flow, which may decrease to 49 % if the Apollo JV’s NOI outperforms an upper level of certain performance metric, or increase to 60 % if the Apollo JV’s NOI underperforms a lower level of certain performance metric.

Because the parties' economic interests are not proportionate to their stated ownership percentages, we allocate income and loss attributable to the noncontrolling interest using the hypothetical liquidation at book value ("HLBV") method, taking into account any capital transactions between the Company and Apollo.

With respect to Realty Income, L.P., as of March 31, 2026, outstanding common partnership units in our operating partnership represented a 9.95 % ownership interest.

We hold the remaining 90.05 % interest and consolidate the entity.

The following table represents the change in the carrying value of all noncontrolling interests through March 31, 2026 (in thousands):

Core Plus Fund

Apollo Realty Income, L.P.

Other Noncontrolling Interests Total

The carrying amount of

Apollo's 49 % share of the net assets was $ 778.9 million , which was recognized as noncontrolling interest, with the

difference of $ 238.5 million r ecorded as an increase to additional paid-in capital ("APIC").

Direct and incremental

transaction costs of $ 20.7 million were recorded as a reduction of APIC for the six months ended June 30, 2026 .

The JV Agreement provides for, among other things, quarterly distributions of available cash flow to the Apollo JV’s

Prior to Apollo achieving the Target IRR (as defined in the JV Agreement), the Class B Member will

receive a default allocation of 55 % of available cash flow, which may decrease to 49 % if the Apollo JV’s NOI

outperforms an upper level of certain performance metric, or increase to 60 % if the Apollo JV’s NOI underperforms

a lower level of certain performance metric.

Because the parties' economic interests are not proportionate to their

stated ownership percentages, we allocate income and loss attributable to the noncontrolling interest using the

hypothetical liquidation at book value ("HLBV") method, taking into account any capital transactions between the

Company and Apollo.

With respect to Realty Income, L.P., as of June 30, 2026 , outstanding common partnership units in our operating

partnership represented a 9.95 % ownership interest owned by third parties .

We hold the remaining 90.05 % interest

and consolidate the entity.

The following table represents the change in the carrying value of all noncontrolling interests through June 30, 2026

(in thousands):

Realty Income,

Noncontrolling

Carrying value as of December 31, 2025

$ 477,081 $ — $ 165,663 $ 42,529 $ 685,273

Contributions

642,732 1,000,000 — 4,642 1,647,374

Distributions

1 unchanged sentence

Reallocation of equity

Carrying value as of March 31, 2026

$ 1,098,930 $ 778,256 $ 164,838 $ 46,160 $ 2,088,184

(1) 2,681,808 units were outstanding as of both March 31, 2026 and December 31, 2025.

As of March 31, 2026, we are considered the primary beneficiary of our Fund, Realty Income, L.P.

and other VIEs.

Purchase of noncontrolling interests

Carrying value as of June 30, 2026

(1) 2,681,808 units were outstanding as of both June 30, 2026 and December 31, 2025 .

As of June 30, 2026 , we are considered the primary beneficiary of our Fund, Apollo, Realty Income, L.P.

For further information, see note 1 , Summary of Significant Accounting Policies .

Fair Value Measurements

Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price).

ASC 820, Fair Value Measurements and Disclosures , sets forth a fair value hierarchy that categorizes inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.

Categorization within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an

orderly transaction between market participants at the measurement date (the exit price).

ASC 820, Fair Value Measurements and Disclosures , sets forth a fair value hierarchy that categorizes inputs to

valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted

prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs.

Categorization

within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

• Level 1 – Quoted market prices in active markets for identical assets and liabilities

• Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other market-corroborated inputs

• Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities,

quoted prices in markets that are not active, or other market-corroborated inputs

• Level 3 – Inputs that are unobservable and significant to the overall fair value measurement

We evaluate our hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from period to period.

Changes in the type of inputs may result in a reclassification for certain assets.

We have not historically had changes in classifications and do not expect that changes in classifications between levels will be frequent.

The following tables present the carrying values and estimated fair values of financial instruments as of March 31, 2026 and December 31, 2025 (in millions):

March 31, 2026

We evaluate our hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or

liability may be classified differently from period to period.

Changes in the type of inputs may result in a

reclassification for certain assets.

We have not historically had changes in classifications and do not expect that

changes in classifications between levels will be frequent.

The following tables present the carrying values and estimated fair values of financial instruments as of June 30,

2026 and December 31, 2025 (in millions):

June 30, 2026

Hierarchy Level

Carrying Value Level 1 Level 2 Level 3

Carrying Value

Loans receivable

Derivative assets

Total assets $ 2,739.3 $ — $ 1,385.5 $ 1,357.9

Term loans (1)

Mortgages payable (1)

$ 37.5 $ — $ — $ 37.1

Notes and bonds payable (1)

25,228.6 — 23,166.9 995.8

Derivative liabilities

3 unchanged sentences

Hierarchy Level

Carrying Value Level 1 Level 2 Level 3

Carrying Value

Loans receivable

Derivative assets

Total assets $ 1,690.1 $ — $ 1,218.5 $ 474.3

Mortgages payable

3 unchanged sentences

Financial Instruments Not Measured at Fair Value on our Consolidated Balance Sheets

The fair value of short-term financial instruments such as cash and cash equivalents, accounts receivable, escrow deposits, accounts payable, distributions payable, revolving credit facilities and commercial paper borrowings, and other liabilities approximate their carrying value in the accompanying consolidated balance sheets, due to their short-term nature.

The aggregate fair value of our term loans approximates carrying value due to the frequent repricing of the variable interest rate charged on the borrowing.

The following table reflects the carrying amounts and estimated fair values of our financial instruments not measured at fair value on our consolidated balance sheets (in millions):

March 31, 2026 December 31, 2025

The fair value of short-term financial instruments such as cash and cash equivalents, accounts receivable, escrow

deposits, accounts payable, distributions payable, revolving credit facilities and commercial paper borrowings, and

other liabilities approximate their carrying value in the accompanying consolidated balance sheets, due to their

short-term nature.

The following table reflects the carrying amounts and estimated fair values of our financial instruments not

measured at fair value on our consolidated balance sheets (in millions):

June 30, 2026

December 31, 2025

Carrying value

1 unchanged sentence

Loans receivable

Term loans (1)

Mortgages payable (1)

$ 37.5 $ 37.1 $ 37.9 $ 37.6

Notes and bonds payable (1)

$ 25,228.6 $ 24,162.7 $ 25,343.8 $ 24,647.5

(1) Excludes non-cash net premiums and discounts, and deferred financing costs.

The estimated fair values of our mortgage loan receivable, unsecured and other loans, private senior secured loans receivable, mortgages payable, and private senior notes payable have been calculated by discounting the future cash flows using an interest rate based upon the relevant input, such as forward interest rate curve, plus an applicable credit-adjusted spread.

Because this methodology includes unobservable inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values related to the named financial instruments are categorized as level 3 of the fair value hierarchy.

The estimated fair values of our publicly-traded senior secured loans receivable, publicly-traded senior notes and bonds payable are based upon indicative market prices and recent trading activity of each financial instrument.

Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values related to these financial instruments is categorized as level 2 of the fair value hierarchy.

The fair value estimation of secured loans receivable that are not publicly traded similarly incorporates less observable, market-corroborated inputs.

The estimated fair values of our mortgage loans receivable, unsecured and other loans, private senior secured

loans receivable, our 2026 Term Loan Facility, mortgages payable, and private senior notes payable have been

calculated by discounting the future cash flows using an interest rate based upon the relevant input, such as forward

interest rate curve, plus an applicable credit-adjusted spread.

Because this methodology includes unobservable

inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values related

to the named financial instruments are categorized as level 3 of the fair value hierarchy.

The estimated fair values of our publicly-traded senior secured loans receivable, publicly-traded senior notes and

bonds payable, and other term loans as discussed in note 7 , Term Loans are based upon indicative market prices

and recent trading activity of each financial instrument.

Because this methodology includes inputs that are less

observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair

values related to these financial instruments is categorized as level 2 of the fair value hierarchy.

The fair value

estimation of secured loans receivable that are not publicly traded similarly incorporates less observable, market-

corroborated inputs.

Prior to the second quarter of 2026, the aggregate fair value of our term loans approximated carrying value due to

the frequent repricing of the variable interest rate charged on the borrowing.

Financial Instruments Measured at Fair Value on a Recurring Basis

For derivative assets and liabilities, we may utilize interest rate swaps, interest rate swaptions, and forward-starting swaps to manage interest rate risk, and cross-currency swaps and foreign currency forwards to manage foreign currency risk.

The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative.

This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, spot and forward rates, as well as option volatility.

Derivative fair values also include credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements.

In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within level 2 on the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by ourselves and our counterparties.

However, as of March 31, 2026 and December 31, 2025, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives.

As a result, we determined that our derivative valuations in their entirety are classified as level 2.

For more details on our derivatives, see note 11, Derivative Instruments .

For derivative assets and liabilities, we may utilize interest rate swaps, interest rate swaptions, and forward-starting

swaps to manage interest rate risk, and cross-currency swaps and foreign currency forwards to manage foreign

currency risk.

The valuation of these instruments is determined using widely accepted valuation techniques,

including discounted cash flow analysis on the expected cash flows of each derivative.

This analysis reflects the

contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs,

including interest rate curves, spot and forward rates, as well as option volatility.

Derivative fair values also include credit valuation adjustments to appropriately reflect both our own nonperformance

risk and the respective counterparty’s nonperformance risk in the fair value measurements.

In adjusting the fair

value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and

any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within level 2 on the

fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize level 3 inputs, such as

estimates of current credit spreads, to evaluate the likelihood of default by ourselves and our counterparties.

However, as of June 30, 2026 and December 31, 2025 , we assessed the significance of the impact of the credit

valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation

adjustments are not significant to the overall valuation of our derivatives.

As a result, we determined that our

derivative valuations in their entirety are classified as level 2.

For more details on our derivatives, see note 11 ,

Derivative Instruments .

Items Measured at Fair Value on a Non-Recurring Basis

Impairment of Real Estate Investments

Certain financial and nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are subject to fair value adjustments only under certain circumstances, such as when an impairment write-down occurs.

Depending on impairment triggering events during the applicable period, impairments are typically recorded for properties sold, in the process of being sold, vacant, in bankruptcy, or experiencing difficulties with collection of rent.

The following table summarizes our provisions for impairment on real estate investments during the periods indicated below (dollars in millions):

Three months ended March 31,

Certain financial and nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are

subject to fair value adjustments only under certain circumstances, such as when an impairment write-down occurs.

Depending on impairment triggering events during the applicable period, impairments are typically recorded for

properties sold, in the process of being sold, vacant, in bankruptcy, or experiencing difficulties with collection of rent.

The following table summarizes our provisions for impairment on real estate investments during the periods

indicated below (dollars in millions):

Three months ended

Six months ended

Carrying value prior to impairment

4 unchanged sentences

Classified as held for investment

The valuation of impaired assets is determined by using widely accepted valuation techniques including income capitalization approach, using net operating income for each property and applying a weighted average capitalization rate of 8.6 %, recent comparable sales transactions, broker opinions of value with discounts based on management judgment, and purchase offers received from third parties, which are level 3 inputs.

We may consider a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of such real estate.

The valuation of impaired assets is determined by using widely accepted valuation techniques including income

capitalization approach, using net operating income for each property and applying a weighted average

capitalization rate of 8.6 % , recent comparable sales transactions, broker opinions of value with discounts based on

management judgment, and purchase offers received from third parties, which are level 3 inputs.

We may consider

a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of such

Estimating future cash flows is highly subjective and estimates can differ materially from actual results.

Derivative Instruments

In the normal course of business, our operations are exposed to economic risks from interest rates and foreign currency exchange rates.

We may enter into derivative financial instruments to offset these underlying economic risks.

In the normal course of business, our operations are exposed to economic risks from interest rates and foreign

currency exchange rates.

We may enter into derivative financial instruments to offset these underlying economic

Derivatives Designated as Hedging Instruments - Cash Flow Hedges

We enter into foreign currency forward contracts to sell GBP and buy USD to hedge the foreign currency risk on interest payments on intercompany loans denominated in GBP.

There are no amounts excluded from the assessment of hedge effectiveness for cash flow hedges of foreign exchange risk.

We also execute variable-to-fixed interest rate swaps and use interest rate swaption agreements to add stability to interest expense and to manage our exposure to interest rate movements associated with our term loans or forecasted transactions.

If it becomes probable that a forecasted transaction will not occur within the specific time period or within an additional two-month period thereafter, any related amounts deferred in AOCI are recognized immediately in earnings.

During the three months ended March 31, 2026, and 2025, n o such amounts were recognized through the caption entitled 'Interest' in our consolidated statements of income and comprehensive income.

We enter into foreign currency forward contracts to sell GBP or EUR and buy USD to hedge the foreign currency

risk associated with forecasted foreign-currency-denominated cash flows.

There are no amounts excluded from the

assessment of hedge effectiveness for cash flow hedges of foreign exchange risk.

We also use variable-to-fixed

interest rate swaps and interest rate swaption agreements to add stability to interest expense and to manage our

exposure to interest rate movements associated with our term loans or forecasted debt issuances.

If it becomes

probable that a forecasted transaction will not occur within the specific time period or within an additional two-month

period thereafter, any related amounts deferred in AOCI are recognized immediately in earnings.

During the six

months ended June 30, 2026 , and 2025 , n o such amounts were recognized through the caption entitled ' Interest ' in

our consolidated statements of income and comprehensive income.

Derivatives Designated as Hedging Instruments - Fair Value Hedges

Periodically, we enter into and designate fixed-to-floating interest rate swaps to manage interest rate risk by managing our mix of fixed-rate and variable-rate debt.

These swaps involve the receipt of fixed-rate amounts for variable interest rate payments over the life of the swaps without exchange of the underlying principal amount.

We also designate some of our cross-currency swaps as fair value hedges as we use them to hedge foreign currency risk associated with changes in spot rates on foreign-denominated intercompany receivables and third-party debt.

For these hedging instruments, we have elected to exclude the change in fair value of the cross-currency swaps attributable to the difference between the spot and forward prices from the assessment of hedge effectiveness (the "excluded component").

Changes in the fair value of the cross-currency swaps attributable to these excluded components are recorded to other comprehensive income and subsequently recognized in 'Foreign currency and derivative loss, net' on a systematic and rational basis, as net cash settlements and interest accruals on the respective cross currency swaps occur, over the remaining life of the hedging instruments.

Periodically, we enter into and designate fixed-to-floating interest rate swaps to manage interest rate risk by

managing our mix of fixed-rate and variable-rate debt.

We also designate some of our cross-currency swaps as fair

value hedges as we use them to hedge foreign currency risk associated with changes in spot rates on foreign-

denominated on certain-foreign currency-denominated monetary assets and liabilities.

For these hedging

instruments, we have elected to exclude the change in fair value of the cross-currency swaps attributable to the

difference between the spot and forward prices from the assessment of hedge effectiveness (the "excluded

Changes in the fair value of the cross-currency swaps attributable to these excluded components are

recorded to other comprehensive income and subsequently recognized in ' Foreign currency and derivative loss, net '

on a systematic and rational basis, as net cash settlements and interest accruals on the respective cross currency

swaps occur, over the remaining life of the hedging instruments.

Derivatives Designated as Hedging Instruments - Net Investment Hedges

To mitigate the foreign currency exchange rate variations associated with our investment in EUR-denominated foreign operations, we may enter into derivative instruments, such as cross-currency swaps that qualify as net investment hedges under the criteria prescribed in accordance with ASC 815-20, Hedging - General .

We use the spot method of assessing hedge effectiveness and apply the consistent election to the excluded component by recognizing changes in the fair value of the hedging instruments attributable to the excluded component in the same manner as described above.

Any difference between the change in the fair value of the excluded components and the amounts recognized in earnings is reported in other comprehensive income as part of the foreign cumulative translation adjustment.

The gain or loss on the portion of the derivative instruments included in the assessment of effectiveness is reported in other comprehensive income as part of the 'Foreign currency translation adjustment' line item, to the extent the relationship is highly effective.

If our net investment changes during a reporting period, the hedge relationship will be assessed for whether a de-designation is warranted (only if the hedge notional amount is outside of prescribed tolerance).

Further, certain EUR-denominated bonds and borrowings under our revolving credit facilities and term loans may also be designated as, and are effective as, net investment hedges.

Changes in the value of such borrowings, related to changes in the spot rates, will be recorded in the same manner as foreign currency translation adjustments.

As of March 31, 2026, the total principal amount of foreign currency debt obligations designated as net investment hedges was $ 761.2 million.

To mitigate the foreign currency exchange rate variations associated with our investment in EUR-denominated

foreign operations, we may enter into derivative instruments, such as cross-currency swaps that qualify as net

investment hedges under the criteria prescribed in accordance with ASC 815-20, Hedging - General .

spot method of assessing hedge effectiveness and apply the consistent election to the excluded component by

recognizing changes in the fair value of the hedging instruments attributable to the excluded component in the same

manner as described above.

Any difference between the change in the fair value of the excluded components and

the amounts recognized in earnings is reported in other comprehensive income as part of the foreign cumulative

translation adjustment.

The gain or loss on the portion of the derivative instruments included in the assessment of

effectiveness is reported in other comprehensive income as part of the ' Foreign currency translation adjustment ' line

item, to the extent the relationship is highly effective.

If our net investment changes during a reporting period, the

hedge relationship will be assessed for whether a de-designation is warranted (only if the hedge notional amount is

outside of prescribed tolerance).

Further, certain EUR-denominated and GBP-denominated bonds and borrowings

under our revolving credit facilities and term loans may also be designated as, and are effective as, net investment

Changes in the value of such borrowings, related to changes in the spot rates, will be recorded in the same

manner as foreign currency translation adjustments.

As of June 30, 2026 , the total principal amount of foreign

currency debt obligations designated as net investment hedges was $ 2.4 billion .

Derivatives Not Designated as Hedging Instruments

We enter into foreign currency exchange swap agreements to reduce the effects of currency exchange rate fluctuations between the USD, our reporting currency, and GBP and EUR.

These derivative contracts generally mature within one year and are not designated as hedge instruments for accounting purposes.

As the currency exchange swap is not accounted for as a hedging instrument, the change in fair value is recorded in earnings through the caption entitled 'Foreign currency and derivative loss, net' in our consolidated statements of income and comprehensive income.

The following table summarizes the terms and fair values of our derivative financial instruments as of March 31, 2026 and December 31, 2025 (dollars in millions):

We enter into foreign currency exchange swap agreements to economically hedge foreign currency exposures

arising in the normal course of business.

These derivative contracts generally mature within one year and are not

designated as hedge instruments for accounting purposes.

As the currency exchange swap is not accounted for as

a hedging instrument, the change in fair value is recorded in earnings through the caption entitled ' Foreign currency

and derivative loss, net ' in our consolidated statements of income and comprehensive income.

The following table summarizes the terms and fair values of our derivative financial instruments as of June 30,

2026 and December 31, 2025 (dollars in millions):

Derivative Type

Number of Instruments (1)

Instruments (1)

Notional Amount

Weighted Average Strike Rate (2)

Maturity Date (3)

Strike Rate (2)

Fair Value - asset (liability)

Derivatives Designated as Hedging Instruments March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025

Derivatives Designated as Hedging

Interest rate swaps (4)

7 $ 1,400.0 $ 2,105.0 3.13 % Aug 2027 - Jan 2028 $ 22.2 $ 5.1

Cross-currency swaps - Fair Value

11 1,220.0 720.0 (5) Feb 2029 - Jan 2036 ( 64.8 ) ( 81.0 )

Cross-currency swaps - Net Investment

3 280.0 280.0 (6) Oct 2032 ( 55.7 ) ( 66.1 )

Cross-currency swaps - Fair

Cross-currency swaps - Net

Foreign currency forwards

65 708.2 519.7 (7) Apr 2026 - Dec 2028 14.6 ( 8.7 )

$ 3,608.2 $ 3,624.7 $ ( 83.7 ) $ ( 150.7 )

Derivatives not Designated as Hedging Instruments

Derivatives not Designated as Hedging

Currency exchange swaps

7 $ 3,789.9 $ 2,972.8 (8) Apr 2026 $ 23.5 $ ( 47.0 )

Cross-currency swaps - Mark to Market

4 500.0 — (9) Apr 2033 ( 4.5 ) —

$ 4,289.9 $ 2,972.8 $ 19.0 $ ( 47.0 )

Total of all Derivatives

(1) This column represents the number of instruments outstanding as of March 31, 2026.

(2) Weighted average strike rate is calculated using the notional value as of March 31, 2026.

(3) This column represents maturity dates for instruments outstanding as of March 31, 2026.

(4) During the year ended December 31, 2025, we entered into five variable-to-fixed interest rate swaps in connection with our GBP-denominated term loan maturing in 2028 and designated these derivatives as cash flow hedges of the underlying interest rate risk.

In addition, two other variable-to-fixed interest rate swaps, which were assumed in connection with the Merger, continue to be designated as cash flow hedges of the related assumed term loans.

(5) USD fixed rate of 5.625 % and EUR weighted average fixed rate of 4.681 %.

(1) This column represents the number of instruments outstanding as of June 30, 2026 .

(2) Weighted average strike rate is calculated using the notional value as of June 30, 2026 .

(3) This column represents maturity dates for instruments outstanding as of June 30, 2026 .

(4) During the three months ended June 30, 2026 , we entered into five variable-to-fixed interest rate swaps in connection with the delayed draw

term loan under the Fund Credit Facilities.

(5) USD fixed r ate of 5.625 % and EUR weighted average fixed rate of 4.681 % .

USD fixed rate of 3.950 % and GBP weighted average fixed rate of

USD fixed rate of 4.910 % and EUR weighted average fixed rate of 4.122 % .

(6) USD fixed rate of 5.625 % and EUR weighted average fixed rate of 4.716 %.

(7) Weighted average exchange rates of 1.34 for GBP-USD and 1.21 EUR-USD.

(8) Weighted average exchange rates of 0.87 for EUR-GBP and 1.33 for GBP-USD.

USD fixed rate of 4.750 % and EUR weighted average

fixed rate of 3.806 % .

(6) USD fixed rate of 5.625 % and EUR weighted average fixed rate of 4.716 % .

We measure our derivatives at fair value and include the balances within 'Other assets, net' and 'Accounts payable and accrued expenses' on our consolidated balance sheets.

We have agreements with each of our derivative counterparties containing provisions under which we could be declared in default on our derivative obligations if repayment of our indebtedness is accelerated by the lender due to our default.

The following table summarizes the amount of unrealized gain (loss) on derivatives and foreign currency translation adjustments in other comprehensive income (in thousands):

Three months ended March 31,

(7) Weighted average exchange rates of 1.34 for GBP-USD and 1.21 for EUR-USD.

(8) Weighted average exchange rates of 0.87 for EUR-GBP, 1.34 for GBP-USD, and 4.32 for EUR-PLN.

We measure our derivatives at fair value and include the balances within ' Other assets, net ' and ' Accounts payable

and accrued expenses ' on our consolidated balance sheets .

We have agreements with each of our derivative counterparties containing provisions under which we could be

declared in default on our derivative obligations if repayment of our indebtedness is accelerated by the lender due to

The following table summarizes the amount of unrealized gain (loss) on derivatives and foreign currency translation

adjustments in other comprehensive income (in thousands):

Three months ended

Six months ended

Derivatives in Cash Flow Hedging Relationships

6 unchanged sentences

Total derivatives in fair value hedging relationships

Total unrealized gain (loss) on derivatives, net $ 48,332 $ ( 10,625 )

Derivatives and Non-derivatives in Net Investment Hedging Relationships

Total unrealized (loss) gain on derivatives, net

Derivatives and Non-derivatives in Net Investment Hedging

Relationships

Cross-currency swaps - Net Investment

Foreign currency debt

Total unrealized gain (loss) recorded in foreign currency translation adjustment $ 21,014 $ ( 8,953 )

Total unrealized gain (loss) recorded in foreign currency

translation adjustment

The following table summarizes the amount of gain (loss) on derivatives reclassified from AOCI (in thousands):

Three months ended March 31,

Derivatives in Cash Flow Hedging Relationships Location of (Decrease) Increase Recognized in Income

Interest rate swaps Interest $ 2,400 $ 3,384

Foreign currency forwards Foreign currency and derivative loss, net

( 8,432 ) 1,318

Interest rate swaptions Interest 60 104

Total derivatives in cash flow hedging relationships $ ( 5,972 ) $ 4,806

Derivatives in Fair Value Hedging Relationships

Cross-currency swaps - Fair Value Foreign currency and derivative loss, net

$ ( 122 ) $ 215

Total derivatives in fair value hedging relationships $ ( 122 ) $ 215

Derivatives in Net Investment Hedging Relationships

Cross-currency swaps - Net Investment (excluded component) Foreign currency and derivative loss, net

Total derivatives in net investment hedging relationships $ 628 $ 652

Net (decrease) increase to net income

$ ( 5,466 ) $ 5,673

We expect to reclassify $ 14.5 million from AOCI as a decrease to interest expense relating to interest rate swaps and $ 11.9 million from AOCI as a decrease to foreign currency loss relating to foreign currency forwards within the next twelve months.

Three months ended

Six months ended

Derivatives in Cash Flow Hedging

Relationships

Location of Increase (Decrease)

Recognized in Income

Interest rate swaps

Foreign currency forwards

Foreign currency and derivative

Interest rate swaptions

Total derivatives in cash flow

hedging relationships

Derivatives in Fair Value Hedging

Relationships

Cross-currency swaps - Fair Value

(excluded component)

Foreign currency and derivative

Total derivatives in fair value

hedging relationships

Derivatives in Net Investment

Hedging Relationships

Cross-currency swaps - Net

Investment (excluded component)

Foreign currency and derivative

Total derivatives in net investment

hedging relationships

Net increase (decrease) to net

We expect to reclassify $ 13.6 million from AOCI as a decrease to interest expense relating to interest rate swaps

and $ 9.9 million from AOCI as a decrease to foreign currency loss relating to foreign currency forwards within the

next twelve months.

The following table details our foreign currency and derivative loss, net included in income (in thousands):

Three months ended March 31,

Three months ended

Six months ended

Realized foreign currency and derivative loss, net:

(Loss) gain on the settlement of undesignated derivatives $ ( 25,407 ) $ ( 23,404 )

(Loss) gain on the settlement of designated derivatives reclassified from AOCI ( 8,432 ) 2,185

(Loss) gain on the settlement of transactions with third parties ( 3,656 ) 3

Loss on the settlement of undesignated derivatives

Loss on the settlement of designated derivatives reclassified

Gain (loss) on the settlement of transactions with third parties

Total realized foreign currency and derivative loss, net

Unrealized foreign currency and derivative loss, net:

Gain (loss) on the change in fair value of undesignated derivatives $ 54,139 $ ( 3,820 )

(Loss) gain on remeasurement of certain assets and liabilities ( 33,664 ) 22,491

Unrealized foreign currency and derivative gain, net:

Gain (loss) on the change in fair value of undesignated

Gain (loss) on remeasurement of certain assets and liabilities

Total unrealized foreign currency and derivative gain, net

1 unchanged sentence

Lessor Operating Leases

As of March 31, 2026, we owned or held interests in 15,571 properties.

Of the 15,571 properties, 15,206 , or 97.7 %, are single-tenant properties, and the remainder are multi-tenant properties.

As of March 31, 2026, 172 properties were available for lease or sale.

As of June 30, 2026 , we owned or held interests in 15,588 properties.

Of the 15,588 properties, 15,218 , or 97.6 % ,

are single-tenant properties, and the remainder are multi-tenant properties.

As of June 30, 2026 , 188 properties

were available for lease or sale.

The majority of our leases are accounted for as operating leases.

As of March 31, 2026, most of the properties in our portfolio were leased under net lease agreements where our client pays or reimburses us for property taxes and assessments and carries insurance coverage for public liability, property damage, fire, and extended coverage.

The following table details our rental revenue for the three months ended March 31, 2026 and 2025 (in thousands):

Three months ended March 31,

Minimum rent $ 1,305,578 $ 1,222,667

As of June 30, 2026 , most of the properties in our portfolio were leased under net lease agreements where our

client pays or reimburses us for property taxes and assessments and carries insurance coverage for public liability,

property damage, fire, and extended coverage.

The following table details our rental revenue for the three and six months ended June 30, 2026 and 2025 (in

Three months ended

Six months ended

Tenant reimbursement income

3 unchanged sentences

Lease termination income

Other rent 2,087 2,797

Provision for doubtful accounts

2 unchanged sentences

We pay monthly distributions to our common stockholders.

The following is a summary of monthly distributions paid per common share for the periods indicated below:

Three months ended March 31,

January $ 0.2700 $ 0.2640

February 0.2700 0.2640

March 0.2700 0.2680

$ 0.8100 $ 0.7960

As of March 31, 2026, a distribution of $ 0.2705 per common share was payable and was paid in April 2026.

The following is a summary of monthly distributions paid

per common share for the periods indicated below:

Six months ended June 30,

As of June 30, 2026 , a distribution of $ 0.2710 per common share was payable and was paid in July 2026 .

At-the-Market ("ATM") Program

Under our current ATM program, we may offer and sell up to 150.0 million shares of common stock (1) by us to, or through, a consortium of banks acting as our sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers' transactions on the NYSE under the ticker symbol "O" at prevailing market prices or at negotiated prices.

Upon settlement, subject to certain exceptions, we may elect, in our sole discretion, to cash settle or net share settle all or any portion of our obligations under any forward sale agreement, in which cases we may not receive any proceeds (in the case of cash settlement) or will not receive any proceeds (in the case of net share settlement), and we may owe cash (in the case of cash settlement) or shares of our common stock (in the case of net share settlement) to the relevant forward purchaser.

As of March 31, 2026, we had 132.9 million shares remaining for future issuance under our ATM program.

We anticipate maintaining the availability of our ATM program in the future, including the replenishment of authorized shares issuable thereunder.

The following table outlines common stock issuances pursuant to our ATM programs (dollars in millions, shares in thousands):

Three months ended March 31,

Shares of common stock issued under the ATM program (1)

In May 2026, we replaced our prior ATM program with a new ATM program, pursuant to which we may offer and sell

up to 150.0 million shares of common stock (1) by us to, or through, a consortium of banks acting as our sales

agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated

thereunder, in each case by means of ordinary brokers' transactions on the NYSE under the ticker symbol "O" at

prevailing market prices or at negotiated prices.

The current ATM program permits us to enter into both contingent

and non-contingent forward sale agreements.

Under certain forward sale agreements, the applicable forward

purchaser may elect whether to exercise a purchase contingency (the "Contingency"), and any unexercised

Contingency is automatically exercised at expiration if the market price exceeds the applicable forward price.

may receive a contingency premium in connection with such arrangements.

Upon settlement, subject to certain

exceptions, we may elect, in our sole discretion, to cash settle or net share settle all or any portion of our obligations

under any forward sale agreements, in which cases we may not receive any proceeds (in the case of cash

settlement) or will not receive any proceeds (in the case of net share settlement), and we may owe cash (in the

case of cash settlement) or shares of our common stock (in the case of net share settlement) to the relevant forward

As of June 30, 2026 , we had 138.9 million shares remaining available for future issuance under our ATM

We anticipate maintaining the availability of our ATM program in the future, including by replenishing the

authorized shares issuable thereunder.

The following table outlines common stock issuances pursuant to our ATM programs (dollars in millions, shares in

Three months ended

Six months ended

Shares of common stock issued under the ATM

Gross proceeds

Sales agents' commissions and other offering expenses ( 0.2 ) ( 7.2 )

Net proceeds $ ( 0.2 ) $ 624.8

(1) During the three months ended March 31, 2026, 8.2 million shares were sold, and no shares were settled pursuant to forward sale confirmations.

As of March 31, 2026, 20.8 million shares of common stock subject to forward sale confirmations have been executed, but not settled, at a weighted average initial gross price of $ 60.07 per share.

We currently expect to fully settle forward sale agreements outstanding by June 30, 2026, representing $ 1.2 billion in net proceeds, for which the weighted average forward price as of March 31, 2026 was $ 58.63 per share.

Sales agents' commissions and other offering

(1) During the three and six months ended June 30, 2026 , 13.9 million and 22.1 million shares were sold, respectively.

A s of June 30, 2026 , 21.1

million shares of common stock subject to forward sale confirmations have been executed, but not settled, at a weighted average initial gross

price of $ 60.14 per share.

We currently expect to fully settle forward sale agreements outstanding by September 30, 2026 , representing $ 1.2

billion in net proceeds, for which the weighted average forward price as of June 30, 2026 was $ 58.34 per share.

Dividend Reinvestment and Stock Purchase Plan ("DRSPP")

Our DRSPP provides our common stockholders with a convenient and economical method of purchasing our common stock and reinvesting their distributions.

It also allows our current stockholders to buy additional shares of common stock by reinvesting all or a portion of their distributions.

Our DRSPP authorizes up to 26.0 million common shares to be issued.

As of March 31, 2026, we had 10.5 million shares remaining for future issuance under our DRSPP program.

The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions, shares in thousands):

Three months ended March 31,

Shares of common stock issued under the DRSPP program 50 57

Our DRSPP provides our common stockholders with a convenient and economical method of purchasing our

common stock and reinvesting their distributions.

It also allows our current stockholders to buy additional shares of

common stock by reinvesting all or a portion of their distributions.

Our DRSPP authorizes up to 26.0 million common

shares to be issued.

As of June 30, 2026 , we had 10.4 million shares remaining for future issuance under our

DRSPP program.

The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions, shares in

Three months ended

Six months ended

Shares of common stock issued under the

DRSPP program

Gross proceeds

Repurchases of Common Stock

We repurchased 1.8 million shares of our common stock during the three months ended March 31, 2026 for an aggregate cost of $ 101.9 million .

As of March 31, 2026 , there was $ 1.9 billion remaining under the share repurchase program authorized by the Board of Directors, which expires in January 2028.

We repurchased 1.8 million shares of our common stock during the six months ended June 30, 2026 for an

aggregate cost of $ 101.9 million .

As of June 30, 2026 , there was $ 1.9 billion remaining under the share repurchase

program authorized by the Board of Directors, which expires in January 2028.

Common Stock Incentive Plan

The amount of share-based compensation costs recognized in 'General and administrative' in our consolidated statements of income and comprehensive income was $ 11.4 million and $ 5.9 million during the three months ended March 31, 2026 and 2025, respectively.

The amount of share-based compensation costs recognized in ' General and administrative ' in our consolidated

statements of income and comprehensive income was $ 9.3 million and $ 8.1 million during the three months ended

June 30, 2026 and 2025 , respectively, and $ 20.7 million and $ 14.0 million during the six months ended June 30,

2026 , and 2025 , respectively.

Restricted Stock and Restricted Stock Units

During the three months ended March 31, 2026, we granted a total of 264,649 shares of restricted stock and restricted stock units under the Realty Income 2021 Incentive Award Plan (the "2021 Plan").

Restricted stock and restricted stock units granted to employees vest over a service period not exceeding four years , while those granted to directors vest over a period of up to three years based on each director's years of service, and are subject to the director’s continued service through each applicable vesting date.

As of March 31, 2026, the remaining unamortized share-based compensation expense related to restricted stock awards and units totaled $ 36.6 million, which is being amortized on a straight-line basis over the service period of each applicable award.

The amount of share-based compensation is based on the fair value of the stock at the grant date.

We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and conditions of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares.

During the six months ended June 30, 2026 , we granted a total of 304,832 shares of restricted stock and restricted

stock units under the Realty Income 2021 Incentive Award Plan (the "2021 Plan").

This amount included 32,140

shares granted to the independent members of our Board of Directors in connection with our annual awards in May

Restricted stock and restricted stock units granted to employees vest over a service period not exceeding four

years , while those granted to directors vest over a period of up to three years based on each director's years of

service, and are subject to the director’s continued service through each applicable vesting date.

As of June 30, 2026 , the remaining unamortized share-based compensation expense related to restricted stock

awards and units totaled $ 33.5 million , which is being amortized on a straight-line basis over the service period of

each applicable award.

The amount of share-based compensation is based on the fair value of the stock at the

We define the grant date as the date the recipient and Realty Income have a mutual understanding of

the key terms and conditions of the award, and the recipient of the grant begins to benefit from, or be adversely

affected by, subsequent changes in the price of the shares.

Performance Shares

During the three months ended March 31, 2026, we granted 246,900 performance shares, as well as dividend equivalent rights, to our executive officers.

The performance shares are earned based on our Total Shareholder Return (“TSR”) performance relative to select industry indices and peer groups as well as achievement of certain operating metrics, and vest 50 % as of the date of which the plan administrator determines the achievement of the applicable goals during the applicable three-year performance period and the remaining 50 % on January 1 of the following year, subject to continued service.

As of March 31, 2026, the remaining share-based compensation expense related to the performance shares totaled $ 38.6 million.

During the six months ended June 30, 2026 , we granted 246,900 performance shares, as well as dividend

equivalent rights, to our executive officers.

The performance shares are earned based on our Total Shareholder

Return (“TSR”) performance relative to select industry indices and peer groups as well as achievement of certain

operating metrics, and vest 50 % as of the date of which the plan administrator determines the achievement of the

applicable goals during the applicable three -year performance period and the remaining 50 % on January 1 of the

following year, subject to continued service.

As of June 30, 2026 , the remaining share-based compensation expense related to the performance shares totaled

$ 34.0 million .

The performance shares are recognized on a tranche-by-tranche basis over the service period.

The fair value of the performance shares was estimated on the date of grant using a Monte Carlo Simulation model.

fair value of the performance shares was estimated on the date of grant using a Monte Carlo Simulation model.

Net Income per Common Share

The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation (shares in thousands):

Three months ended March 31,

Weighted average shares used for the basic net income per share computation 931,977 891,666

Incremental shares from share-based compensation 1,118 574

The following is a reconciliation of the denominator of the basic net income per common share computation to the

denominator of the diluted net income per common share computation (shares in thousands):

Three months ended

Six months ended

Weighted average shares used for the basic net

income per share computation

Incremental shares from share-based

Dilutive effect of forward ATM offerings

Weighted average shares used for diluted net income per share computation 934,446 892,351

Unvested shares from share-based compensation that were anti-dilutive 78 72

Weighted average partnership common units convertible to common shares that were anti-dilutive 2,682 2,682

Weighted average forward ATM offerings that were anti-dilutive 28 5

Weighted average shares issuable upon conversion of the convertible notes that were anti-dilutive 11,458 —

Weighted average shares used for diluted net

income per share computation

Unvested shares from share-based

compensation that were anti-dilutive

Weighted average partnership common units

convertible to common shares that were anti-

Weighted average forward ATM offerings that

were anti-dilutive

Weighted average shares issuable upon

conversion of the convertible notes that were

anti-dilutive

Supplemental Disclosures of Cash Flow Information

The following table summarizes our supplemental cash flow information during the periods indicated below (in thousands):

Three months ended March 31,

The following table summarizes our supplemental cash flow information during the periods indicated below (in

Six months ended

Supplemental disclosures:

3 unchanged sentences

Net increase (decrease) in fair value of derivatives

The following table provides a reconciliation of 'Cash and cash equivalents' reported on our consolidated balance sheets to the total of the cash, cash equivalents, and restricted cash reported within our consolidated statements of cash flows (in thousands):

March 31, 2026 March 31, 2025

$ ( 143,010 )

Payment-in-kind interest expense on Term Loans

Payment-in-kind interest and dividend income on loans and preferred equity

T he following table provides a reconciliation of ' Cash and cash equivalents ' reported on our consolidated balance

sheets to the total of the cash, cash equivalents, and restricted cash reported within our consolidated statements of

cash flows (in thousands):

June 30, 2026

June 30, 2025

Cash and cash equivalents shown in the consolidated balance sheets

Restricted escrow deposits (1)

146,818 15,617

Impounds related to mortgages payable (1)

Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 524,043 $ 350,685

(1) Included within 'Other assets, net' on our consolidated balance sheets (see note 2, Supplemental Detail for Certain Components of Consolidated Balance Sheets ).

Total cash, cash equivalents, and restricted cash shown in the consolidated

statements of cash flows

(1) Included within ' Other assets, net ' on our consolidated balance sheets (see note 2 , Supplemental Detail for Certain Components of

Consolidated Balance Sheets ).

These amounts consist of cash that we are legally entitled to, but that is not immediately available to us.

As a result, these amounts were considered restricted as of the dates presented.

result, these amounts were considered restricted as of the dates presented.

Segment and Geographic Information

Segment Information

Our business is characterized as primarily owning and leasing commercial properties under long-term, net lease agreements (whereby clients are responsible for property taxes, insurance and maintenance costs), and these economic characteristics are similar across various property types, geographic locations, and industries in which our clients operate.

Our business is characterized as primarily owning and leasing commercial properties under long-term, net lease

agreements (whereby clients are responsible for property taxes, insurance and maintenance costs), and these

economic characteristics are similar across various property types, geographic locations, and industries in which our

clients operate.

Our chief operating decision maker ("CODM") is our President, Chief Executive Officer.

Information reviewed by our CODM in evaluating performance and allocating resources is primarily operating results and cash flow analysis on a consolidated basis.

Therefore, we operate and manage the business in one operating and reportable segment.

The CODM assesses performance and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income.

The measure of segment assets is reported on the balance sheet as total consolidated assets.

Our significant segment expenses include consolidated expense categories presented in our consolidated statements of income and comprehensive income, as well as additional significant segment expense categories reported within 'Property (including reimbursements)' and 'General and administrative' expense captions, as follows (in thousands):

Three months ended March 31,

reviewed by our CODM in evaluating performance and allocating resources is primarily operating results and cash

flow analysis on a consolidated basis.

Therefore, we operate and manage the business in one operating and

reportable segment.

The CODM assesses performance and decides how to allocate resources based on net income that also is reported

on the income statement as consolidated net income.

The measure of segment assets is reported on the balance

sheet as total consolidated assets.

Our significant segment expenses include consolidated expense categories

presented in our consolidated statements of income and comprehensive income , as well as additional significant

segment expense categories reported within 'Property (including reimbursements)' and 'General and administrative'

expense captions, as follows (in thousands):

Three months ended

Six months ended

Property expenses (excluding reimbursements)

Cash G&A expenses (1)

$ 47,502 $ 38,145

(1) Represents 'General and administrative' expenses as presented in our consolidated statements of income and comprehensive income, less share-based compensation costs.

Other segment items included in consolidated net income consist of 'Gain on sales of real estate' and 'Other income, net', as presented in our consolidated statements of income and comprehensive income.

(1) Represents 'General and administrative' expenses as presented in our consolidated statements of income and comprehensive income , less

share-based compensation costs.

Other segment items included in consolidated net income consist of ' Gain on sales of real estate ' and ' Other

income, net ', as presented in our consolidated statements of income and comprehensive income .

Geographic Information

The following table disaggregates domestic and international revenue by major asset types and geographic regions (in thousands):

Three months ended March 31,

Retail $ 910,924 $ 177,200 $ 57,342 $ 1,145,466

Industrial 202,696 15,236 16,599 234,531

58,410 2,410 — 60,820

The following table disaggregates domestic and international revenue by major asset types and geographic regions

(in thousands):

Three months ended June 30,

Rental (including reimbursements)

2 unchanged sentences

Total revenue

Retail $ 864,073 $ 138,265 $ 39,280 $ 1,041,618

Industrial 196,429 11,663 — 208,092

62,386 961 — 63,347

Rental (including reimbursements)

2 unchanged sentences

Total revenue

Six months ended June 30,

Rental (including reimbursements)

Interest income on financing receivables

Interest and dividend income on loans and preferred equity investments

Total revenue

Rental (including reimbursements)

Interest income on financing receivables

Interest and dividend income on loans and preferred equity investments

Total revenue

(1) Other includes rental revenue generated from all other European countries we operate in.

(2) Other includes all other property types in our portfolio.

No individual client’s revenue represented more than 10% of our total revenue for each of the three months ended March 31, 2026 and 2025.

Long-lived assets include items such as property, plant, equipment and right-of-use assets subject to operating and finance leases.

No individual client’s revenue represented more than 10% of our total revenue for each of the three and six months

ended June 30, 2026 and 2025 .

Long-lived assets include items such as property, plant, equipment and right-of-use assets subject to operating and

finance leases.

The following table disaggregates domestic and international total long-lived assets (in millions):

March 31, 2026 December 31, 2025

June 30, 2026

December 31, 2025

Long-lived assets

Remaining assets

Total assets $ 74,554.7 $ 72,795.6

(1) Other includes long-lived assets in all other European countries we operate in.

Commitments and Contingencies

In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business.

We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations.

As of March 31, 2026, we had $ 736.3 million of commitments under construction contracts related to development projects, which have estimated rental revenue commencement dates between April 2026 and December 2028.

In addition, as of March 31, 2026, we had commitments of $ 42.3 million for tenant improvements, recurring capital expenditures, and building improvements, and had accrued $ 15.2 million in contingent consideration obligations related to leasing activities at four U.K.

retail park properties acquired in 2026.

In March 2026, we closed on a mezzanine loan entered into with a joint venture with a principal balance of $ 375.0 million.

As of March 31, 2026, we have an obligation to fund up to $ 135.6 million over the term of the guarantee on third-party debt related to this loan, in the event of default.

The guarantee is effective through the term of the related loan, which matures in March 2029 and has two 12 -month extension options available.

The guarantee requires fair value measurement.

As such, we recorded the measured amount of $ 4.0 million as a liability at inception, which is included in 'Other liabilities' on our consolidated balance sheets.

As of March 31, 2026, we had approximately $ 390.1 million of unfunded loan commitments related to certain loan investments, under which we are committed to provide funding upon borrower request, subject to satisfaction of customary conditions.

These commitments may be funded over the contractual commitment period and are generally intended to support the financing needs of the borrowers, including project development costs, operational expenditures, and interest obligations.

These commitments are secured by the underlying real estate collateral or pledges of equity interests in the borrowing entities.

In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and

incidental to the operation of our business.

We believe that the outcome of the proceedings will not have a material

adverse effect upon our consolidated financial position or results of operations.

As of June 30, 2026 , we had $ 729.4 million of commitments under construction contracts related to development

projects, which have estimated rental revenue commencement dates between July 2026 and December 2028 .

addition , we had commitments of $ 81.1 million for tenant improvements, recurring capital expenditures, and building

improvements, and had accrued $ 11.5 million in contingent consideration obligations related to leasing activities at

retail park properties acquired in 2026 , representing the remaining amounts deemed probable and

estimable as of June 30, 2026 .

In June 2026, we entered into an agreement with a joint venture to fund approximately $ 243.0 million for our equity

interest in the joint venture, among other costs.

This purchase obligation is expected to close during the third

quarter of 2026.

As of June 30, 2026 , we had approximately $ 375.4 million of unfunded loan commitments related to certain loan

investments, under which we are committed to provide funding upon borrower request, subject to satisfaction of

customary conditions.

These commitments may be funded over the contractual commitment period and are

generally intended to support the financing needs of the borrowers, including project development costs, operational

expenditures, and interest obligations.

These commitments are secured by the underlying real estate collateral or

pledges of equity interests in the borrowing entities.

In March 2026, we closed on a mezzanine loan entered into with a joint venture with a principal balance of

$ 375.0 million .

As of June 30, 2026 , we have an obligation to fund up to $ 135.6 million over the term of the

guarantee on third-party debt related to this loan, in the event of default.

The guarantee is effective through the term

of the related loan, which matures in March 2029 and has two 12 -month extension options available.

The guarantee

requires fair value measurement.

As such, we recorded the measured amount of $ 4.0 million as a liability at

inception, which is included in 'Other liabilities' on our consolidated balance sheets .

Subsequent Events

In April 2026, we declared a dividend of $ 0.2705 per share to our common stockholders, which will be paid in May 2026.

In July 2026 , we declared a dividend of $ 0.2710 per share to our common stockholders, which will be paid in August

Credit Facility Amendment

On July 10, 2026, we amended and restated our unsecured revolving credit facility to increase the borrowing

capacity to $ 5.5 billion , among other things.

The revolving credit facility is bifurcated into two $ 2.75 billion tranches,

which initially mature on April 29, 2029 and July 10, 2030, respectively, before giving effect to two six -month

extension options.

Pursuant to the terms of the revolving credit facility, t he credit ratings at the time of the

amendment provided for a borrowing rate of 67.5 basis points over the SOFR for USD borrowings, with a facility

commitment fee of 12.5 basis points, for all-in drawn pricing of 80 basis points over SOFR, a reduction of 5.0 basis

points from the prior revolving credit facilities.

Commercial Paper Program

On July 10, 2026, in conjunction with the closing of the updated revolving credit facility, we also expanded our global

unsecured commercial paper programs to a total combined capacity of $ 5.5 billion , including an upsized

$ 2.75 billion U.S.

commercial paper program and a $ 2.75 billion European commercial paper program.

will be sold under customary terms in the United States and European commercial paper note markets, respectively,

and will rank pari passu with all of our other unsecured senior indebtedness, including our outstanding senior notes

and borrowings under our multicurrency revolving credit facilities.

Core Plus Fund

On April 1, 2026, we called an additional $ 310.0 million of capital from third-party investors and redeemed $ 183.8 million of the Company's units, resulting in an indirect ownership of 26.8 % in the Fund.

On April 30, 2026, the Fund borrowed $ 177.0 million under its unsecured delayed draw term loan and used the proceeds to repay borrowings under its unsecured revolving credit facility.

Note Issuance

In April 2026, we issued $ 800.0 million of 4.750 % senior unsecured notes due April 2033 (the "Notes").

The public offering price for the Notes was 98.261 % of the principal amount for an effective yield to maturity of 5.047 %.

Interest is paid semi-annually.

In connection with the issuance, we executed a $ 500 million U.S.

Dollar-to-Euro 7-year cross currency swap, resulting in approximately € 436 million of proceeds and an effective fixed-rate, Euro-denominated yield to maturity of approximately 4.07 % and coupon rate of 3.81 %.

On a combined basis, the Notes and related swap resulted in an effective blended yield to maturity of approximately 4.44 % and blended coupon rate of 4.16 %.

On July 1, 2026 , we called an additional $ 265.7 million of capital from third-party investors , resulting in an indirect

ownership of 23.6 % in the Fund.

ATM Forward Offerings

As of May 6, 2026, we had outstanding forward sale agreements under our ATM program for a total of 23.6 million shares of common stock, representing expected net proceeds of approximately $ 1.4 billion (assuming full physical settlement of such agreements), of which 2.8 million shares were sold in April 2026.

As of August 5, 2026 , we had outstanding forward sale agreements under our ATM program for a total of 22.5

million shares of common stock, representing expected net proceeds of approximately $ 1.3 billion (assuming full

physical settlement of such agreements), of which 1.4 million shares were sold in July 2026.

Note Issuance

In July 2026, we issued € 600.0 million of 3.625 % senior unsecured notes due July 2032 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements