REIT Realty Income raises annual AFFO outlook on higher rental revenue

(Reuters) – Realty Income on Monday raised the lower end of its full-year outlook for adjusted funds from operations (AFFO) as the real estate investment trust (REIT) expects to benefit from higher rental revenue.

The commercial REIT forecast 2023 per-share AFFO between $3.98 and $4.01, compared with its previous outlook of $3.96 to $4.01.

The company’s shares were up about 1% at $50.86 after the bell.

Realty Income, which operates commercial properties, also raised its annual net income outlook to between $1.25 per share and $1.32 per share, compared with its prior estimate of $1.20 to $1.28 per share.

The company said last week it would buy Spirit Realty Capital in a $9.3 billion deal to further expand its real estate portfolio.

Realty Income on Monday reported third-quarter revenue of $1.04 billion, compared with analysts’ estimates of $998 million, according to LSEG data.

(Reporting by Priyamvada C and Aatreyee Dasgupta)