Realty Income (O) AI Stock Analysis

• Market Cap: $55.86B
• Dividend Yield: 5.64%
• Average Volume (3M): 6.08M
• Price to Earnings (P/E): 56.8
• 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: 5,996,525
• 30 Day Avg. Volume: 6,083,702
• 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: 1.52
• Enterprise Value/Revenue: 15.18
• Enterprise Value/Gross Profit: 16.40
• Enterprise Value/Ebitda: 19.54
• 1Y Price Target: $62.59
• Price Target Upside: 3.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 1.61
• Revenue Forecast (FY): $5.59B

• Rating: 75 Outperform
• Price Target: $65.00 ▲(7.05% Upside)

The score is driven primarily by strong financial performance (high profitability and solid cash generation) and a constructive earnings outlook (raised investment and AFFO guidance with very high occupancy). Technicals are neutral with little momentum, while valuation is the main drag due to a high P/E despite the strong dividend yield.

Positive Factors

Cash Generation

Realty Income efficiently converts net income into free cash flow, with OCF well above net income and positive FCF growth. This durable cash generation underpins monthly dividends, funds acquisitions and debt service, and provides financial flexibility across the next several quarters.

Portfolio Occupancy & Rent Pricing

Very high occupancy and a rent recapture rate above 100% reflect low vacancy, strong renewal demand and pricing power on turnovers. With 87% leasing from renewals, this supports stable rental cash flow, reduces downtime and leasing costs, and sustains AFFO and dividend coverage.

Acquisition Momentum & Geographic Diversification

Shifting acquisition focus to Europe, where yields and addressable market are favorable, diversifies revenue and access to higher spreads. Increased investment guidance signals the ability to deploy capital at attractive yields, supporting longer-term income growth and portfolio resilience.

Negative Factors

U.S. Acquisition Competition

Intense private-capital competition in the U.S. can compress acquisition yields and raise purchase prices, forcing Realty Income to accept lower spreads or chase assets. Over months this reduces prospective yields on new investments and limits margin expansion from portfolio growth.

Tenant Credit Risk

A meaningful share of rents on credit watch and an assumed ~75bp credit loss indicate persistent tenant stress risk. Realized losses or higher provisions would erode AFFO and distributable income, pressuring dividend coverage and capital deployment flexibility in the medium term.

Convertible Notes & Capital-Structure Complexity

The sizable convertible issuance boosts liquidity but adds conversion and dilution risk along with structural complexity. Future conversions would increase share count, while coupon and redemption mechanics constrain flexibility, potentially weighing on per-share metrics and shareholder returns over time.

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: Positive
• Last Price: 60.72
• 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 60.72 is above the 20-day moving average (MA) of 57.63, above the 50-day MA of 57.21, and above the 200-day MA of 56.63, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 71.19 is Negative, neither overbought nor oversold. The STOCH value of 98.24 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
FRT	77 Outperform	$8.84B	25.87	10.92%	4.38%	6.05%	14.70%
O	75 Outperform	$55.86B	56.76	2.48%	5.64%	11.23%	1.82%
REG	70 Outperform	$12.78B	31.95	6.07%	4.15%	5.38%	3.13%
SPG	70 Outperform	$59.52B	25.07	90.26%	4.56%	4.18%	-5.05%
KIM	69 Neutral	$14.07B	24.93	5.68%	5.02%	7.99%	55.05%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRX	65 Neutral	$7.98B	24.14	11.36%	4.41%	6.07%	-0.28%

Realty Income Corporate Events

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.

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.

The most recent analyst rating on (O) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Hold with a $60.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.