Realty Income (O) AI Stock Analysis

• Market Cap: $52.13B
• Dividend Yield: 5.64%
• Average Volume (3M): 6.23M
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.12
• Revenue Growth: 11.23%
• EPS Growth: 1.82%
• Country: US
• Employees: 468
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.35
• Shares Outstanding: 919,905,760
• 10 Day Avg. Volume: 7,520,697
• 30 Day Avg. Volume: 6,230,344
• PEG Ratio: -2.44
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 8.85
• P/FCF Ratio: 13.05
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 15.18
• Enterprise Value/Gross Profit: 16.40
• Enterprise Value/Ebitda: 19.54
• 1Y Price Target: $61.95
• Price Target Upside: 10.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $62.00 ▲(10.85% Upside)

Realty Income's strong financial performance and strategic corporate events are significant strengths, supporting a solid foundation for future growth. However, technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. The positive earnings call and attractive dividend yield provide additional support, but increased competition in the U.S. market and reliance on one-time income are notable risks.

Positive Factors

Strong Financial Performance

Consistent revenue growth and high profitability margins indicate a robust business model and efficient operations, supporting long-term stability and shareholder value.

High Portfolio Occupancy

High occupancy rates and effective rent recapture demonstrate strong asset management, ensuring steady cash flow and reducing vacancy risks.

Strategic European Investments

European investments with high yields expand market reach and diversify revenue streams, enhancing growth potential and reducing reliance on U.S. markets.

Negative Factors

Increased Competition in U.S. Market

Increased competition in the U.S. market could pressure margins and limit growth opportunities, challenging Realty Income's market position.

Lease Termination Income Impact

Reliance on one-time lease termination income may not be sustainable, potentially impacting future revenue consistency and predictability.

Modest Return on Equity

A modest return on equity indicates potential inefficiencies in generating shareholder returns, which could affect investor confidence and capital allocation.

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 real estate properties owned under long-term lease agreements with our commercial clients. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since Realty Income's public listing in 1994 (NYSE: O). The company is a member of the S&P 500 Dividend Aristocrats index. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.

How the Company Makes Money

Realty Income generates revenue primarily through rental income derived from its long-term lease agreements with tenants. The company employs a strategy of acquiring properties that are leased to high-quality tenants on a net lease basis, where the tenant is responsible for property expenses such as maintenance, taxes, and insurance. This model allows Realty Income to receive a predictable and stable cash flow, which is then distributed to shareholders in the form of monthly dividends. Additionally, the company may benefit from rental escalations built into lease agreements, providing an increase in rental income over time. Realty Income also engages in selective property acquisitions and dispositions, allowing it to manage its portfolio actively and optimize returns. Key partnerships with reputable national and regional tenants further enhance its revenue stability and growth potential.

Realty Income Financial Statement Overview

Summary

Realty Income demonstrates strong financial performance with consistent revenue growth and high profitability margins. The balance sheet is stable with moderate leverage and a strong equity base, though ROE could be improved. Cash flow metrics indicate robust cash generation and effective financial management.

Income Statement

Realty Income has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.56%. The company maintains strong profitability with a high gross profit margin of 92.56% and a solid net profit margin of 17.18%. EBIT and EBITDA margins are robust at 39.07% and 83.61% respectively, indicating efficient operational management. However, the net profit margin has slightly decreased from previous years, which could be a point of concern.

Balance Sheet

The balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.77, indicating moderate leverage. The equity ratio stands at 54.78%, showcasing a strong equity base. Return on equity is modest at 2.47%, suggesting room for improvement in generating returns for shareholders. Overall, the company maintains a stable financial position with manageable debt levels.

Cash Flow

Realty Income's cash flow is strong, with a free cash flow growth rate of 2.78% in the TTM period. The operating cash flow to net income ratio is 2.39, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.0, reflecting effective conversion of net income into free cash flow. The company shows a solid cash flow position, supporting its operational and financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.60B	5.27B	4.08B	3.34B	2.08B	1.65B
Gross Profit	5.18B	4.89B	3.76B	3.12B	1.95B	1.54B
EBITDA	4.35B	4.33B	3.60B	2.98B	1.85B	1.38B
Net Income	962.12M	860.77M	872.31M	869.41M	359.46M	395.49M
Balance Sheet
Total Assets	71.28B	68.84B	57.78B	49.67B	43.14B	20.74B
Cash, Cash Equivalents and Short-Term Investments	417.17M	444.96M	232.92M	171.10M	258.58M	824.48M
Total Debt	28.90B	26.76B	21.99B	18.60B	15.95B	8.94B
Total Liabilities	32.02B	29.78B	24.67B	20.83B	18.01B	9.72B
Stockholders Equity	39.05B	38.84B	32.94B	28.71B	25.05B	10.99B
Cash Flow
Free Cash Flow	3.76B	3.57B	2.96B	2.56B	1.30B	1.11B
Operating Cash Flow	3.76B	3.57B	2.96B	2.56B	1.32B	1.12B
Investing Cash Flow	-5.32B	-3.34B	-9.35B	-8.39B	-6.44B	-2.03B
Financing Cash Flow	1.55B	-21.16M	6.44B	5.74B	4.58B	1.69B

Realty Income Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For O, the sentiment is Negative. The current price of 55.93 is below the 20-day moving average (MA) of 57.28, below the 50-day MA of 57.49, and below the 200-day MA of 56.35, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 11.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for O.

Realty Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRT	77 Outperform	$8.82B	25.70	10.92%	4.38%	6.05%	14.70%
O	70 Outperform	$52.13B	52.28	2.48%	5.64%	11.23%	1.82%
REG	70 Outperform	$12.64B	31.62	6.07%	4.15%	5.38%	3.13%
SPG	70 Outperform	$60.94B	25.80	90.26%	4.58%	4.18%	-5.05%
KIM	69 Neutral	$13.56B	24.12	5.68%	5.04%	7.99%	55.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRX	65 Neutral	$7.98B	24.17	11.36%	4.41%	6.07%	-0.28%

Realty Income Corporate Events

Realty Income Boosts 2025 Investment Guidance to $6B

On December 1, 2025, Realty Income Corporation announced an increase in its 2025 investment volume guidance to over $6.0 billion, up from the previous estimate of $5.5 billion. The company also revealed a definitive agreement with Blackstone Real Estate for an $800 million preferred equity investment in the CityCenter real estate in Las Vegas. This strategic move, expected to close on December 9, 2025, aims to enhance Realty Income’s portfolio with a favorable yield and IRR profile, further expanding its investment pipeline and strengthening its position in the real estate market.

Realty Income Secures £900 Million Term Loan

On November 18, 2025, Realty Income Corporation announced the closure of a £900 million Sterling-denominated unsecured term loan, maturing in January 2028, with an option for a one-year extension. The proceeds will refinance existing Sterling-denominated borrowings, enhancing financial flexibility. The loan, supported by multiple financial institutions, offers a borrowing rate of 80 basis points over the SONIA rate, with interest rate swaps fixing the rate at 4.3% over the initial term. This strategic financial maneuver is expected to bolster Realty Income’s global platform and address upcoming loan maturities with a lower fixed rate.

Realty Income Announces New Stock Sales Agreement

On November 7, 2025, Realty Income Corporation announced a new sales agreement with multiple financial institutions to offer and sell up to 150 million shares of its common stock. This strategic move, which replaces a previous sales program, aims to raise funds for general corporate purposes, including debt repayment, property development, and potential acquisitions, thereby enhancing the company’s financial flexibility and growth potential.

Realty Income Reports Strong Q3 2025 Results

On November 3, 2025, Realty Income Corporation announced its operating results for the three and nine months ended September 30, 2025. The company reported a net income of $315.8 million for the quarter, with significant investments totaling $1.4 billion at a 7.7% yield. Realty Income also issued $800 million in senior unsecured notes in October 2025. The company achieved a 103.5% rent recapture rate on re-leased properties, demonstrating effective asset management and portfolio stability. With a strong performance and expanded investment opportunities, Realty Income updated its 2025 AFFO per share guidance to $4.25 – $4.27 and investment volume guidance to approximately $5.5 billion.

Realty Income Appoints Kim Hourihan to Board

On October 14, 2025, Realty Income Corporation appointed Kim Hourihan to its Board of Directors, increasing the total number of directors to eleven. Ms. Hourihan, who brings extensive experience from her roles at Invesco Real Estate and CBRE Investment Management, will serve on the Compensation and Talent Committee and is expected to contribute significantly to Realty Income’s global expansion and diversification of capital sources.

Realty Income Completes $800 Million Notes Issuance

On October 6, 2025, Realty Income Corporation completed the issuance of $800 million in notes, split equally between 3.950% notes due 2029 and 4.500% notes due 2033. This financial maneuver is likely to impact the company’s operational funding and may influence its market position by enhancing its capital structure.

Realty Income Announces $800M Notes Issuance

On September 25, 2025, Realty Income Corporation announced a purchase agreement with several underwriters to issue and sell $800 million in aggregate principal amount of notes, split between 3.950% Notes due 2029 and 4.500% Notes due 2033. This move is expected to impact the company’s financial operations by providing additional capital, potentially influencing its market positioning and offering insights into its strategic financial planning.

Realty Income Announces Strong Liquidity Position

On September 25, 2025, Realty Income Corporation announced updates regarding its liquidity status. As of September 23, 2025, the company reported having $3.6 billion in liquidity, comprising cash, cash equivalents, unsettled ATM forward equity, and available credit under its revolving credit facilities. This financial update highlights Realty Income’s robust liquidity position, which is crucial for its operational stability and strategic flexibility in the real estate market.