Realty Income Corp (O) (2024)

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Stock XNYS Rating as of

$59.02 −0.31(0.52%)

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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 438% premium.

Price

$59.32

Fair Value

$56.00

Uncertainty

Low

1-Star Price
$29.17

5-Star Price
$53.00

Economic Moat
Tmkkn

Capital Allocation
Bxmzygkkn

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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Is it the right time to buy, sell, or hold?

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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

Trading Information

Previous Close Price
$59.33
Day Range

$56.8859.27

52-Week Range

$45.0460.25

Bid/Ask
$59.01/$59.04

Market Cap
$51.34 Bil

Volume/Avg
2.7 Mil/5.2 Mil

Key Statistics

Price/Earnings (Normalized)
43.10

Price/Sales
9.94

Dividend Yield (Trailing)
5.22%

Dividend Yield (Forward)
5.32%

Total Yield
5.22%

Company Profile

Realty Income owns roughly 15,400 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 20% 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)

43.1035.1541.18

Price/Book Value

1.321.941.40

Price/Sales

9.949.117.43

Price/Cash Flow

14.9716.3315.34

Price/Earnings

O

REG

KIM

Financial Strength

Metric

O

REG

KIM

Quick Ratio

1.490.911.68

Current Ratio

1.550.931.69

Interest Coverage

1.963.262.31

Quick Ratio

O

REG

KIM

Profitability

Metric

O

REG

KIM

Return on Assets (Normalized)

1.94%3.43%2.41%

Return on Equity (Normalized)

3.39%6.30%4.49%

Return on Invested Capital (Normalized)

3.39%4.68%3.77%

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

TmgfkwyjNqhx$49.2 Bil
Kimco Realty Corp

KIM

HkzyhlqGmvd$14.8 Bil
Regency Centers Corp

REG

HlfhvjqmSmp$12.8 Bil
Scentre Group

STGPF

Vzlrf$11.6 Bil
Link Real Estate Investment Trust

LKREF

Sfdy$11.0 Bil
CapitaLand Integrated Commercial Trust

CPAMF

Ybzkfv$10.7 Bil
Unibail-Rodamco-Westfield ADR

UNIRF

Vlvc$10.1 Bil
Federal Realty Investment Trust

FRT

NzfsgmfwhRxjhx$9.4 Bil
Macerich Co

MAC

RvctshdRtbf$3.2 Bil

Sponsor Center

Realty Income Corp (O) (2024)

FAQs

Will O stock recover? ›

O Stock 12 Month Forecast

Based on 11 Wall Street analysts offering 12 month price targets for Realty Income in the last 3 months. The average price target is $63.73 with a high forecast of $70.25 and a low forecast of $58.00. The average price target represents a 2.61% change from the last price of $62.11.

Is Realty Income a good stock to buy right now? ›

Realty Income Corporation - Hold

Valuation metrics show that Realty Income Corporation may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of O, demonstrate its potential to underperform the market. It currently has a Growth Score of C.

What is the average return for Realty Income? ›

The total return for Realty Income (O) stock is 19.90% over the past 12 months. So far it's up 12.89% this year. The 5-year total return is 9.78%, meaning $100 invested in O stock 5 years ago would be worth $109.78 today. Total return includes price appreciation plus reinvesting any dividends paid out.

Why is Realty Income stock so low? ›

Investors who have not looked at Realty Income (O 0.11%) in the last few weeks may be surprised to see it at a 52-week high. Despite a growing, stable revenue stream from high-profile clients, the company suffered from a high-interest-rate environment that has pressured its bottom line.

What is the long term outlook for Realty Income Corporation? ›

Future Growth

Realty Income is forecast to grow earnings and revenue by 18% and 5.6% per annum respectively. EPS is expected to grow by 12.7% per annum. Return on equity is forecast to be 4.2% in 3 years.

Who owns most of O stock? ›

Vanguard owns the most shares of Realty Income (O).

Is Realty Income a safe dividend stock? ›

Dividend income we provide to our shareholders tends to be reliable since it is supported by long-term leases with tenants we have determined can be relied upon to make lease payments. Throughout our operating history, we have never decreased the amount of our regular monthly dividend payment.

Is OA buy hold or sell? ›

A buy is a stock that an analyst thinks you should buy now, a sell is one an analyst thinks you should sell, and a hold is one an analyst thinks is good enough to keep in a portfolio but not worthy of additional investment.

What stock pays the best monthly dividends? ›

Seven Monthly Dividend Stocks to Consider
Monthly Dividend StockTrailing-12-month Dividend Yield*
Gladstone Capital Corp. (ticker: GLAD)8.8%
Dynex Capital Inc. (DX)10.8%
Horizon Technology Finance Corp. (HRZN)12%
Realty Income Corp. (O)5%
3 more rows
Aug 30, 2024

What is the 10 year return of Realty Income? ›

Ten Year Stock Price Total Return for Realty Income is calculated as follows: Last Close Price [ 56.24 ] / Adj Prior Close Price [ 21.06 ] (-) 1 (=) Total Return [ 167.0% ] Prior price dividend adjustment factor is 0.61.

What is the price prediction for Realty Income? ›

Stock Price Forecast

The 16 analysts with 12-month price forecasts for Realty Income stock have an average target of 61.27, with a low estimate of 48 and a high estimate of 70.25. The average target predicts a decrease of -1.81% from the current stock price of 62.40.

How much does Realty Income payout stocks? ›

Realty Income Corporation's ( O ) dividend yield is 5.02%, which means that for every $100 invested in the company's stock, investors would receive $5.02 in dividends per year.

Why is Realty Income crashing? ›

The main reason for the poor performance is the rising-rate environment of the past couple of years and specifically the change in expectations for rate cuts compared to the start of 2024.

Is it worth investing in Realty Income? ›

Realty Income is a rock-steady star in the realm of income investing. It's one of just three REITs that have come through with at least 25 years of increased distributions. Realty Income stretched that streak of annual increases to 29 earlier this year. Realty Income watches over a massive empire.

Is Realty Income in debt? ›

Total debt on the balance sheet as of June 2024 : $25.98 B

According to Realty Income's latest financial reports the company's total debt is $25.98 B. A company's total debt is the sum of all current and non-current debts.

Can a stock recover from zero? ›

Yes, it is possible for a stock to recover from zero. The company can file Chapter 11 bankruptcy, restructure, and continue operating. At that point, the stock will unfreeze and you can trade it like normal again.

What is the 12 month price forecast for O stock? ›

Stock Price Forecast

The 16 analysts with 12-month price forecasts for Realty Income stock have an average target of 61.27, with a low estimate of 48 and a high estimate of 70.25. The average target predicts a decrease of -2.14% from the current stock price of 62.61.

Is O Reilly stock a good investment? ›

The highest analyst price target is $1,275.00 ,the lowest forecast is $986.00. The average price target represents 5.65% Increase from the current price of $1,124.02. O'Reilly Auto's analyst rating consensus is a Strong Buy. This is based on the ratings of 14 Wall Streets Analysts.

Will Asensus Surgical stock go up? ›

Given the current horizontal trend, you can expect Asensus Surgical, Inc. stock with a 90% probability to be traded between $0.285 and $0.353 at the end of this 3-month period.

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