Realty Income (O)
NYSE:O
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Realty Income
(NYSE:O)
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Rating:63Neutral
Price Target:
$66.00
â–²(6.74% Upside)
Action:ReiteratedDate:04/08/26
The score is driven primarily by solid multi-year cash generation and a generally stable REIT operating backdrop, supported by a constructive earnings outlook (high occupancy, capital access, and improved credit-loss expectations). Offsetting this are data-quality/consistency concerns in the latest reported financials, a softer near-term technical setup, and a high P/E despite the strong dividend yield.
Positive Factors
High occupancy and rent recapture
Sustained ~99% physical occupancy and >100% rent recapture indicate durable portfolio cash-flow resilience. For a net‑lease REIT, high occupancy and strong re-leasing metrics translate into predictable rental cash flows, steady AFFO support, and lower vacancy-driven capital needs over the medium term.
Negative Factors
2025 financial reporting anomalies
Material inconsistencies in the 2025 disclosures (negative reported gross profit/EBIT and anomalous zero debt figure) impede accurate assessment of profitability and leverage. Persistent accounting or classification anomalies undermine transparency, complicate underwriting and capital‑allocation decisions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and rent recapture
Sustained ~99% physical occupancy and >100% rent recapture indicate durable portfolio cash-flow resilience. For a net‑lease REIT, high occupancy and strong re-leasing metrics translate into predictable rental cash flows, steady AFFO support, and lower vacancy-driven capital needs over the medium term.
Read all positive factors
Realty Income (O) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.03B
Dividend Yield5.64%
Average Volume (3M)6.50M
Price to Earnings (P/E)48.2
Beta (1Y)0.18
Revenue Growth11.23%
EPS Growth1.82%
CountryUS
Employees468
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.32
Shares Outstanding932,440,250
10 Day Avg. Volume6,270,337
30 Day Avg. Volume6,501,017
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)1.29
Price to Sales (P/S)8.87
P/FCF Ratio13.20
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue15.73
Enterprise Value/Gross Profit17.52
Enterprise Value/Ebitda22.11
Forecast
1Y Price Target
$67.21Price Target Upside8.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.65
Revenue Forecast (FY)$5.66B
Realty Income Business Overview & Revenue Model
Company Description
Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 re...
How the Company Makes Money
Realty Income primarily makes money by acquiring income-producing commercial properties and leasing them to tenants under long-term net lease agreements. Under a net lease structure, tenants generally pay base rent to Realty Income and are typical...
Realty Income Key Performance Indicators (KPIs)
Any
Changes in Occupancy
Tracks fluctuations in occupancy rates, reflecting demand for properties and potential impacts on rental income.
Tracks fluctuations in occupancy rates, reflecting demand for properties and potential impacts on rental income.
Data provided by:
The Fly
The FlyRealty Income Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and capital-markets strengths: resilient occupancy and rent recapture, heavy 2025 investment activity at mid-7% yields, new capital channels (open-end fund, GIC and Blackstone partnerships), strong liquidity and balance-sheet positioning, and disciplined asset management (e.g., proactive At Home dispositions). Management provided constructive 2026 guidance (AFFO $4.38–$4.42) and expects an $8B investment program while forecasting lower credit loss rates (40–50 bps vs 70 bps in 2025). Noted risks include still-elevated credit watch-list exposure (~4.8%), modest near-term AFFO growth versus historical norms, fundraising execution required to fully scale new vehicles, and selective caution in higher-return adjacencies. Overall, positives around capital diversification, liquidity, and proactive risk management outweigh the headwinds and conservative guidance.Positive Updates
AFFO and Quarterly/Full-Year Results
AFFO per share of $1.08 in Q4 2025 and $4.28 for full year 2025; company noted this supports stability and positions business for growth.
Negative Updates
Slower Historical Growth and Modest AFFO Acceleration
Full-year AFFO per share $4.28 and 2026 guidance midpoint ~$4.40 imply modest acceleration (~2.8% YoY) versus the company's historical ~5% growth target, highlighting a recovery timeline.
Read all updates
Q4-2025 Updates
Positive
Negative
AFFO and Quarterly/Full-Year Results
AFFO per share of $1.08 in Q4 2025 and $4.28 for full year 2025; company noted this supports stability and positions business for growth.
Read all positive updates
Company Guidance
Realty Income guided AFFO per share of $4.38–$4.42 for 2026 and expects to deploy about $8.0 billion in acquisitions, with key assumptions including credit‑related losses of 40–50 basis points of rental revenue (vs. ~70 bps in 2025), lease termination income of $30–$40 million, an unreimbursed property expense margin of ~1.5% of revenue, cash G&A of 20–23 basis points of gross asset value, roughly $10 million of base management fees from the open‑end fund, physical occupancy of about 98.5%, same‑store growth of ~1.0–1.3%, and management continuing to target acquisition spreads near historical levels (~150–160 bps over short‑term WACC).Realty Income Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.75B | 5.27B | 4.08B | 3.34B | 2.08B |
| Gross Profit | 5.16B | 4.89B | 3.76B | 3.12B | 1.95B |
| EBITDA | 3.55B | 4.33B | 3.60B | 2.98B | 1.85B |
| Net Income | 1.06B | 860.77M | 872.31M | 869.41M | 359.46M |
Balance Sheet | |||||
| Total Assets | 72.80B | 68.84B | 57.78B | 49.67B | 43.14B |
| Cash, Cash Equivalents and Short-Term Investments | 434.84M | 444.96M | 232.92M | 171.10M | 258.58M |
| Total Debt | 32.85B | 26.76B | 21.99B | 18.60B | 15.95B |
| Total Liabilities | 32.67B | 29.78B | 24.67B | 20.83B | 18.01B |
| Stockholders Equity | 39.44B | 38.84B | 32.94B | 28.71B | 25.05B |
Cash Flow | |||||
| Free Cash Flow | 3.86B | 3.45B | 2.89B | 2.47B | 1.30B |
| Operating Cash Flow | 3.99B | 3.57B | 2.96B | 2.56B | 1.32B |
| Investing Cash Flow | -5.17B | -3.34B | -9.35B | -8.39B | -6.44B |
| Financing Cash Flow | 1.19B | -21.16M | 6.44B | 5.74B | 4.58B |
Realty Income Technical Analysis
Positive
61.83
Price Trends
63.05
Negative
59.88
Positive
58.16
Positive
Market Momentum
-0.63
Negative
46.27
Neutral
75.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For O, the sentiment is Positive. The current price of 61.83 is below the 20-day moving average (MA) of 62.29, below the 50-day MA of 63.05, and above the 200-day MA of 58.16, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 75.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for O.
Realty Income Risk Analysis
Realty Income disclosed 36 risk factors in its most recent earnings report. Realty Income reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Realty Income Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.14B | 24.78 | 9.30% | 4.15% | 5.38% | 3.13% | |
73 Outperform | $8.97B | 20.85 | 13.01% | 4.41% | 6.07% | -0.28% | |
72 Outperform | $9.29B | 21.05 | 12.74% | 4.38% | 6.05% | 14.70% | |
71 Outperform | $15.27B | 23.39 | 5.56% | 5.02% | 7.99% | 55.05% | |
67 Neutral | $61.93B | 13.08 | 146.33% | 4.56% | 4.18% | -5.05% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $58.03B | 48.18 | 2.70% | 5.64% | 11.23% | 1.82% |
* Real Estate Sector Average
O
Realty Income
62.23
12.76
25.79%
KIM
Kimco Realty
22.65
4.81
26.97%
REG
Regency Centers
77.33
14.45
22.98%
SPG
Simon Property
190.57
56.86
42.52%
FRT
Federal Realty
107.08
27.18
34.02%
BRX
Brixmor Property
29.22
7.16
32.46%
Realty Income Corporate Events
Private Placements and Financing
Realty Income Completes $800 Million 2033 Notes Offering
Positive
Apr 7, 2026
On April 7, 2026, Realty Income Corporation completed an $800 million offering of 4.750% notes due 2033, strengthening its access to long-term debt capital. The transaction, arranged under a purchase agreement dated March 30, 2026 with a syndicate...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Realty Income Forms $1 Billion Retail Property Partnership
Positive
Mar 30, 2026
As of March 26, 2026, Realty Income reported total liquidity of $4.5 billion, comprising $0.8 billion in cash, $1.2 billion in unsettled ATM forward equity, and $2.5 billion of available capacity under its $5.38 billion credit facilities after acc...
Executive/Board Changes
Realty Income Announces Transition of Chief Legal Officer
Neutral
Mar 2, 2026
On March 2, 2026, Realty Income announced that Executive Vice President, Chief Legal Officer, General Counsel and Secretary Michelle Bushore will leave the company after a transition period ending September 2, 2026. During this period she will ret...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Realty Income Reports Strong Q4 2025 Results, Outlook
Positive
Feb 24, 2026
On February 24, 2026, Realty Income reported operating results for the fourth quarter and full year ended December 31, 2025, highlighting net income to common stockholders of $296.1 million, or $0.32 per share, for the quarter and $1.1 billion, or...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Realty Income Completes Convertible Notes Offering and Share Buyback
Positive
Jan 8, 2026
On January 8, 2026, Realty Income Corporation closed a private offering of $862.5 million aggregate principal amount of 3.500% convertible senior notes due 2029, including the full exercise of a $112.5 million option granted to initial purchasers....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.