Analyst Eric Borden from BMO Capital maintained a Hold rating on Realty Income and keeping the price target at $62.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Eric Borden has given his Hold rating due to a combination of factors influencing Realty Income’s recent financial activities. The company announced a significant investment with Blackstone, involving an $800 million perpetual preferred investment in CityCenter’s Aria and Vdara properties, which is expected to yield a 7.4% interest rate. While this transaction is initially accretive to 2026 AFFOps by $0.01 and shows solid asset performance, there are concerns about the potential inclusion of a PIK component and a recent decline in Vegas tourism and gaming revenues.
Additionally, Realty Income’s increased acquisition guidance to over $6 billion, alongside the terms of the preferred equity investment, presents both opportunities and risks. The investment includes capped escalators after year five and is subject to an early redemption premium and a make-whole payment if certain returns are not achieved. These elements contribute to a cautious outlook, justifying the Hold rating as the company navigates these complex financial arrangements.
In another report released on November 25, Wells Fargo also maintained a Hold rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of O in relation to earlier this year.