Realty Income’s O 98.9% occupancy is not a one-quarter surprise. The company has kept occupancy near the high-90% range across several market cycles, including recessions and periods of higher interest rates. Its occupancy at 98.9% in first-quarter 2026 compared with a historical median of 98.3%, and well above the 94.4% median for S&P 500 REITs. The gap helps explain why Realty Income’s portfolio is often viewed as more defensive than many other real estate formats.
Realty Income owns mostly single-tenant net lease properties, where tenants usually pay property taxes, insurance and maintenance. This reduces the company’s direct operating burden and makes rental cash flow more predictable. The assets are also often mission-critical locations for tenants, such as grocery stores, convenience stores, dollar stores, home improvement sites, pharmacies and quick-service restaurants. These businesses tend to serve everyday needs, which can support rent payments even when consumers pull back elsewhere.
Diversification adds another layer of protection. As of March 31, 2026, Realty Income had 15,571 properties leased to 1,786 clients across 92 industries, with exposure spread across the United States, the U.K. and continental Europe. No single tenant or industry fully drives the rent base, and about 91% of retail annualized base rent came from clients described as non-discretionary, service-oriented and/or low-price-point. This mix helps soften the impact when one retailer, industry or region weakens.
The company’s re-leasing record also supports the occupancy story. In first-quarter 2026, Realty Income re-leased space at a 103.4% rent recapture rate, with $73.3 million of new annualized base rent versus $70.9 million previously. In other words, the company was not just filling space, it was often replacing or renewing leases at better economics. This is important because high occupancy is more valuable when it does not require large rent cuts to maintain.
How Are Kimco and Regency Keeping Occupancy Strong?
Kimco Realty’s KIM occupancy story remains firm. Kimco Realty reported 96.3% pro rata occupancy, up 50 basis points year over year and just 10 basis points below its record. Kimco Realty’s 410-basis-point leased-versus-economic occupancy spread, record $77 million signed-not-open pipeline and 92.5% small-shop occupancy point to more rent commencements ahead soon.
Regency Centers REG also looks steady. Regency Centers’ same property was 96.6% leased, up 10 basis points sequentially, while commenced rate rose 20 basis points. Regency Centers’ $42 million signed-not-open rent pipeline, strong tenant demand, scarce quality space and grocery-anchored locations support occupancy gains as anchor leasing improves.
O’s Price Performance, Valuation and Estimates
Shares of Realty Income have gained 10.4% so far this year, underperforming the industry’s growth of 19%.
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From a valuation standpoint, O trades at a forward 12-month price-to-FFO of 13.81, below the industry but ahead of its one-year median of 13.47. It carries a Value Score of D.
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Over the past seven days, estimates for 2026 FFO per share have been revised slightly upward.
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At present, Realty Income carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Kimco Realty Corporation (KIM): Free Stock Analysis Report
Regency Centers Corporation (REG): Free Stock Analysis Report
Realty Income Corporation (O): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).