Realty Income Corp (O) (2024)

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Stock XNYS Rating as of

$52.76 −0.40(0.75%)

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Company Report

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Realty Income Corp (O) (1)

Realty Income Continues to Source Acquisitions at Spreads Above Cost of Capital to Drive Growth

Kevin Brown

Realty Income is the largest triple-net REIT in the United States, with over 15,400 properties that mainly house retail tenants. The company describes itself as "The Monthly Dividend Company," and its line of business and operating metrics make its dividend one of the most stable sources of income for investors. Even though about 80% of Realty Income’s tenants are in retail, most are focused on defensive segments, with characteristics such as being service-oriented, naturally protected against e-commerce pressures, or resistant to economic downturns. Additionally, the triple-net lease structure places the burden of all operational risk and cost on the tenant and requires the tenant to make capital expenditures to maintain the property rather than the landlord. These leases are often long term, frequently 15 years with additional extension options, which provides Realty Income a steady stream of rental income. Coverage ratios are also very high, so tenants are healthy and unlikely to request rent concessions, even during downturns. The steady, stable stream of revenue has allowed Realty Income to be one of only two REITs to be members of the S&P High-Yield Dividend Aristocrats Index and have a credit rating of A- or better. This makes Realty Income one of the most dependable investments for income-oriented investors.

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O is trading at a 276% premium.

Price

$52.76

Fair Value

$77.00

Uncertainty

Low

1-Star Price
$95.17

5-Star Price
$28.00

Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Realty Income provides a reliable, albeit slow-growing, monthly dividend built on a steadily performing underlying portfolio through various market conditions.

Bears

It will take an increasingly greater volume of attractive risk-adjusted acquisitions to create meaningful shareholder value growth, possibly pushing Realty Income to take more risk as competition expands for its traditionally targeted assets.

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News

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  • 649th Consecutive Common Stock Monthly Dividend Declared by Realty Income
  • Realty Income Announces Second Quarter 2024 Earnings Release Date
  • 126th Common Stock Monthly Dividend Increase Declared by Realty Income
  • Realty Income Raises 2024 Earnings and Investment Guidance
  • Realty Income Announces Common Stock Dividend Increase of 2.1% and Declares Preferred Stock Quarterly Dividend
  • Spirit Realty's stock rallies on $9 billion buyout by Realty Income Corp.
  • Blackstone sells Bellagio stake to Realty Income Corp. in post-COVID rebound
  • Do you need investment income? Here are 20 REIT stocks with dividends expected to be well supported through 2025.

Trading Information

Previous Close Price
$53.16
Day Range

$52.6153.15

52-Week Range

$45.0464.18

Bid/Ask
$52.76/$52.88

Market Cap
$45.94 Bil

Volume/Avg
3.6 Mil/5.5 Mil

Key Statistics

Price/Earnings (Normalized)
38.34

Price/Sales
8.84

Dividend Yield (Trailing)
5.85%

Dividend Yield (Forward)
5.98%

Total Yield
5.85%

Company Profile

Realty Income owns roughly 13,400 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states and Puerto Rico and are leased to 250 tenants from 47 industries. Recent acquisitions have added industrial, gaming, office, manufacturing, and distribution properties, which make up roughly 17% of revenue.

Sector
Real Estate

Industry
REIT - Retail

Stock Style Box
Mid Core

Total Number of Employees
418

Competitors

  • Regency Centers Corp REG
  • Kimco Realty Corp KIM
  • Federal Realty Investment Trust FRT

Valuation

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Metric

O

REG

KIM

Price/Earnings (Normalized)

38.3430.7640.60

Price/Book Value

1.181.681.22

Price/Sales

8.848.156.58

Price/Cash Flow

13.3114.6714.17

Price/Earnings

O

REG

KIM

Financial Strength

Metric

O

REG

KIM

Quick Ratio

1.491.241.80

Current Ratio

1.551.351.82

Interest Coverage

1.963.322.47

Quick Ratio

O

REG

KIM

Profitability

Metric

O

REG

KIM

Return on Assets (Normalized)

1.94%3.36%2.26%

Return on Equity (Normalized)

3.39%6.10%4.23%

Return on Invested Capital (Normalized)

3.39%4.59%3.48%

Return on Assets

O

REG

KIM

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REIT - Retail Industry Comparables

Screen With Investor

1-Day Chart

Name

Price

Morningstar Rating for Stocks

Capital Allocation

Economic Moat

Market Cap

Simon Property Group Inc

SPG

RwwsbfkxnpRrwmk$48.1 Bil
Kimco Realty Corp

KIM

XpbywpmZbfj$13.0 Bil
Regency Centers Corp

REG

RxxptmppyGqj$11.5 Bil
Unibail-Rodamco-Westfield Act. SIIC ET STES FONC.EUROP.

UNBLF

Yzqq$11.4 Bil
Scentre Group

STGPF

Nqf$11.1 Bil
CapitaLand Integrated Commercial Trust

CPAMF

Qsqqzh$9.9 Bil
Link Real Estate Investment Trust

LKREF

Jrsrz$9.8 Bil
Federal Realty Investment Trust

FRT

QrkzxdxsxlJbbq$8.3 Bil
Macerich Co

MAC

YxqwzzvrRxgh$3.2 Bil

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Realty Income Corp (O) (2024)
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