Realty Income (O) AI Stock Analysis

• Market Cap: $61.19B
• Dividend Yield: 5.64%
• Average Volume (3M): 6.15M
• Price to Earnings (P/E): 62.3
• 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): 0.32
• Shares Outstanding: 919,905,760
• 10 Day Avg. Volume: 6,239,020
• 30 Day Avg. Volume: 6,146,752
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 10.48
• Enterprise Value/Gross Profit: 11.67
• Enterprise Value/Ebitda: 14.73
• 1Y Price Target: $64.71
• Price Target Upside: -2.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $72.00 ▲(8.24% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid underlying financial/cash-flow strength tempered by uncertainty in the latest reported financial statement line items. Technicals are supportive due to a clear uptrend but are capped by overbought signals. Valuation is a notable headwind given the very high P/E despite an attractive dividend, while the earnings call adds a modest positive tilt on steady guidance and improving credit-loss expectations.

Positive Factors

Portfolio Occupancy & Rent Recapture

Sustained 98.9% occupancy and >103% rent recapture demonstrate durable portfolio demand and effective lease-up economics. This reduces vacancy-driven cashflow volatility, supports steady rental income and dividend coverage, and enhances long-term predictability of funds available for distribution.

Cash Generation

Consistently improving operating and free cash flow provides internal funding for acquisitions, debt service and dividends. Reliable cash generation underpins capital recycling and acquisition capacity, strengthening the REIT’s ability to grow distributions and maintain financial flexibility across market cycles.

Diversified Capital Channels

New capital vehicles and institutional partnerships (open-end fund, GIC JV, strategic partners) meaningfully diversify funding and co-investment sources. This lowers reliance on single capital markets, expands deal flow, and enables scaling of higher-return investments without over-levering the core balance sheet.

Negative Factors

Tenant Credit Risk

Elevated credit losses and a ~4.8% watch list indicate persistent tenant stress. Continued tenant defaults or concessions can erode rental cash flow, increase provisions and re-leasing costs, and pressure AFFO and payout coverage over multiple quarters, requiring active mitigation and reserve management.

Slower AFFO Growth

Guided AFFO growth (~2.8%) notably lags historical targets (~5%), signalling slower organic cash-flow expansion. Slower AFFO growth limits dividend growth runway, increases dependence on acquisitions to meet growth objectives, and reduces margin for error in stress scenarios or higher financing costs.

Fundraising and Execution Risk

Scaling new capital vehicles requires additional commitments and execution; remaining fundraising (~$600M) and JV deployment risks could slow the planned acquisition program. Delays in capital sourcing or suboptimal deployment would constrain growth, increase funding costs, or force more dilutive or levered financing choices.

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

Strong and improving operating cash flow/free cash flow profile and a generally reasonable (pre-2025) leverage posture support a solid core REIT performance. The main drag is reduced confidence in the latest reported period due to notable 2025 data discontinuities (e.g., negative gross profit/EBIT and zero reported debt), which adds uncertainty to profitability and leverage interpretation.

Income Statement

Across 2020–2024, revenue trends upward with generally strong profitability for a REIT, supported by solid net margins (about mid-teens to mid-20s) and high EBITDA margins. However, the 2025 annual report shows a sharp deterioration in reported operating profitability (negative gross profit and negative EBIT) despite still-positive net income and a positive EBITDA figure, which raises data consistency/quality concerns and suggests potential one-time items or classification effects that add volatility to reported results.

Balance Sheet

The balance sheet shows a large asset base and steady equity growth over time, with moderate leverage in 2021–2024 (debt-to-equity roughly in the mid-0.6–0.7 range) that looks reasonable for a REIT. Return on equity remains modest (low-single-digits), reflecting capital intensity. The 2025 annual report reports total debt as zero, which is a major discontinuity versus prior years and likely a reporting anomaly; this uncertainty limits confidence in the latest-period leverage picture.

Cash Flow

Cash generation is consistently strong and improving, with operating cash flow rising materially over the period and free cash flow closely tracking operating cash flow. In most years, cash flow comfortably supports earnings (free cash flow roughly in line with net income), and growth in free cash flow is positive. The main weakness is uneven coverage versus operating profit in some years and a 2025 data issue where several cash-flow-to-earnings/coverage fields are shown as zero despite high cash flow, reducing clarity on the latest period’s quality-of-earnings.

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	0.00	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	3.99B	3.57B	2.96B	2.56B	1.30B
Operating Cash Flow	3.99B	3.57B	2.96B	2.56B	1.32B
Investing Cash Flow	-5.66B	-3.34B	-9.35B	-8.39B	-6.44B
Financing Cash Flow	1.68B	-21.16M	6.44B	5.74B	4.58B

Realty Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 66.52 is above the 20-day moving average (MA) of 63.57, above the 50-day MA of 60.20, and above the 200-day MA of 57.29, indicating a bullish trend. The MACD of 1.82 indicates Negative momentum. The RSI at 71.88 is Negative, neither overbought nor oversold. The STOCH value of 85.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for O.

Realty Income Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REG	77 Outperform	$14.13B	27.59	7.74%	4.15%	5.38%	3.13%
SPG	75 Outperform	$65.09B	35.43	113.56%	4.56%	4.18%	-5.05%
BRX	73 Outperform	$9.14B	23.79	12.86%	4.41%	6.07%	-0.28%
FRT	72 Outperform	$9.35B	23.33	12.76%	4.38%	6.05%	14.70%
KIM	71 Outperform	$15.71B	28.68	5.53%	5.02%	7.99%	55.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
O	65 Neutral	$61.19B	62.33	2.48%	5.64%	11.23%	1.82%

Realty Income Corporate Events

Realty Income Reports Strong Q4 2025 Results, Outlook

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 $1.17 per share, for the year. Adjusted funds from operations reached $1.08 per share in the quarter and $4.28 per share for 2025, supported by $2.4 billion of fourth-quarter investments and $6.3 billion for the full year at initial weighted average cash yields above 7%, while portfolio occupancy edged up to 98.9% and the company achieved rent recapture rates above 103% on re-leased properties.

The company also continued to strengthen its balance sheet and capital base by settling 42 million shares through its at-the-market equity program for $2.4 billion in 2025, issuing $862.5 million of 3.500% convertible notes in January 2026, and maintaining net debt at 5.4 times annualized pro forma adjusted EBITDAre. Strategic initiatives included launching a U.S. perpetual life open-end Core Plus fund with $1.5 billion of commitments, forming a more than $1.5 billion build-to-suit joint venture with GIC, and entering Mexico with a $200 million industrial portfolio commitment, while the board approved its 113th consecutive quarterly dividend increase and management pointed to an expanding global market and an active 2026 investment pipeline as key drivers of future growth.

The most recent analyst rating on (O) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

Realty Income Completes Convertible Notes Offering and Share Buyback

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. The senior unsecured notes, issued under Rule 144A to qualified institutional buyers, carry semi-annual interest payments, defined conversion rights into common stock at an initial conversion price of about $69.42 per share, and customary provisions for redemption, repurchase upon fundamental change, and events of default. The transaction generated approximately $845.5 million in net proceeds, of which about $101.9 million was used concurrently to repurchase roughly 1.8 million shares of Realty Income’s common stock in privately negotiated deals, with the remainder earmarked for general corporate purposes including refinancing existing debt, funding property development and acquisitions, and other balance-sheet and portfolio management initiatives, reinforcing the company’s capital flexibility and capacity for continued expansion of its global net-lease portfolio.

The most recent analyst rating on (O) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

Realty Income Prices $750 Million Convertible Senior Notes

On January 6, 2026, Realty Income Corporation announced it had priced a private offering of $750 million in 3.500% convertible senior notes due 2029 to qualified institutional buyers under Rule 144A, with settlement expected on January 8, 2026 and an option for initial purchasers to buy up to an additional $112.5 million of notes. The notes, which are senior unsecured obligations, carry a conversion premium of about 20% over Realty Income’s January 5, 2026 share price, include limited conversion and redemption features, and provide protections for noteholders in the event of certain fundamental changes. Realty Income expects to generate approximately $735 million in net proceeds (or about $845.5 million if the option is fully exercised) and plans to use the majority for general corporate purposes such as refinancing existing debt, funding property development and acquisitions, and potential business combinations, while allocating around $102.1 million to repurchase roughly 1.8 million shares of its common stock in concurrent privately negotiated transactions, which could influence the stock’s trading dynamics and the economics of the notes.

The most recent analyst rating on (O) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

Realty Income Announces Convertible Notes Offering and Liquidity Moves

On January 5, 2026, Realty Income reported that during the fourth quarter of 2025 it invested approximately $2.4 billion across properties, developments, unconsolidated entities, preferred equity and loans, at an initial weighted average cash yield of about 7%, underscoring its continued expansion in income-generating real estate. As of January 2, 2026, the company held $3.7 billion in liquidity, combining cash, unsettled at-the-market forward equity and undrawn capacity on its revolving credit facilities after commercial paper and revolver borrowings, and it also announced a proposed private offering of $750 million in convertible senior notes due 2029, with an option for an additional $112.5 million, to bolster financial flexibility, refinance near-term debt, fund property investments and support share repurchases, potentially affecting its capital structure and the trading dynamics of its common stock.

The most recent analyst rating on (O) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Hold with a $62.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.