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Realty Income
(NYSE:O)
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Rating:66Neutral
Price Target:
$68.00
â–²(3.66% Upside)
Action:Reiterated
Date:08/06/26
Overall score reflects solid but mixed fundamentals (recent margin and TTM free-cash-flow pressure, plus some data reliability issues in TTM leverage) offset by a notably positive earnings call featuring raised AFFO guidance, increased investment targets, and strengthened liquidity/capital access. Technical signals are weak/oversold near term, and valuation is a headwind due to a high P/E despite an attractive dividend yield.
Positive Factors
Liquidity & Capital Access
Realty Income’s enlarged revolving facility, expanded commercial paper capacity and recent euro bond issuance materially strengthen funding optionality. Durable liquidity and demonstrated capital markets access support sustained acquisition activity, dividend coverage and flexibility to recycle capital through cycles.
Negative Factors
Margin & FCF Pressure
A sharp TTM decline in margins and free cash flow undermines the consistency of distributable cash and reduces headroom for reinvestment or debt service. If sustained, lower cash generation could constrain acquisition pacing, pressure AFFO growth and force more reliance on external capital or portfolio sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity & Capital Access
Realty Income’s enlarged revolving facility, expanded commercial paper capacity and recent euro bond issuance materially strengthen funding optionality. Durable liquidity and demonstrated capital markets access support sustained acquisition activity, dividend coverage and flexibility to recycle capital through cycles.
Read all positive factors
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 (O) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.15B
Dividend Yield5.24%
Average Volume (3M)5.41M
Price to Earnings (P/E)45.2
Beta (1Y)0.15
Revenue Growth10.76%
EPS Growth33.50%
CountryUS
Employees544
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.37
Shares Outstanding946,218,000
10 Day Avg. Volume4,698,306
30 Day Avg. Volume5,407,660
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)1.29
Price to Sales (P/S)8.87
P/FCF Ratio12.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$67.44Price Target Upside2.81% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)1.55
Revenue Forecast (FY)$5.68B
Realty Income Business Overview & Revenue Model
Company Description
Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) focused primarily on acquiring and owning single-tenant, net lease commercial real estate. The company’s portfolio is diversified across property types and tenants, with ...
How the Company Makes Money
Realty Income primarily makes money by owning income-producing real estate and collecting contractual rent from tenants under long-term net lease agreements. Under typical net lease structures, tenants pay base rent and are also responsible for ma...
Realty Income Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed robust operating performance, a constructive investment pipeline, strengthened liquidity and capital markets execution, plus a programmatic push into data centers and expanded private capital vehicles. The company raised AFFO guidance, increased full-year investment guidance, improved portfolio quality metrics (occupancy, investment-grade exposure, rent recapture) and secured an A‑level rating from Fitch. Notable risks discussed included cap-rate uncertainty amid interest-rate volatility, localized financing cost challenges (e.g., UK), watch-list credit exposure, and the inherent development and residual-value risks in the hyperscale data center market. Overall the positives — guidance raise, capital platform enhancements, strong liquidity, and durable leasing and portfolio metrics — materially outweighed the identified challenges.Positive Updates
AFFO per Share Growth and Guidance Increase
AFFO per share grew 3.8% to $1.09 in Q2; year-to-date AFFO per share was $2.22, a 5.2% increase. Company raised full-year AFFO per share guidance midpoint by $0.02 to a new range of $4.44–$4.45 (approx. 4% growth at midpoint).
Negative Updates
Cap Rate and Market Uncertainty
Blended acquisition/investment yield (cap rate) was 7.4% in the U.S., lower than prior quarter; management noted unusual recent divergence between cap rates and Treasury yields, competitive pressure keeping cap rates lower, and potential upward pressure on cap rates if 10-year yields move to the 4.6%–5% range.
Read all updates
Q2-2026 Updates
Positive
Negative
AFFO per Share Growth and Guidance Increase
AFFO per share grew 3.8% to $1.09 in Q2; year-to-date AFFO per share was $2.22, a 5.2% increase. Company raised full-year AFFO per share guidance midpoint by $0.02 to a new range of $4.44–$4.45 (approx. 4% growth at midpoint).
Read all positive updates
Company Guidance
Realty Income raised its 2026 AFFO per share guidance midpoint by $0.02 to a new range of $4.44–$4.45 (supported by Q2 AFFO/sh of $1.09, +3.8%, and YTD AFFO/sh $2.22, +5.2%), increased full‑year acquisitions guidance from $9.5B to $10B (expecting ~ $9B at‑share deployments), and held credit‑loss guidance at ~40 bps of rental revenue while keeping lease‑termination income guidance at $45–$50M; the company finished Q2 with ~$3.5B of available liquidity (pro forma >$5.7B after expanding the revolver and commercial paper to $5.5B each, a €600M bond at 3.7% and ~$1.3B of unsettled ATM equity), reported net debt/annualized pro‑forma adjusted EBITDA of 5.4x (5.2x incl. ATM), aims to stay within a ~5.5x leverage target and keep variable‑rate debt ≤10% of total, and has issued $3.0B of new debt YTD at a blended coupon of 3.9% (vs. $1.4B matured at ~4%).Realty Income Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.05B | 5.75B | 5.27B | 4.08B | 3.34B | 2.08B |
| Gross Profit | 2.91B | 5.16B | 4.89B | 3.76B | 3.12B | 1.95B |
| EBITDA | 4.11B | 3.55B | 4.33B | 3.60B | 2.59B | 1.29B |
| Net Income | 1.32B | 1.06B | 860.77M | 872.31M | 869.41M | 359.46M |
Balance Sheet | ||||||
| Total Assets | 76.44B | 72.80B | 68.84B | 57.78B | 49.67B | 43.14B |
| Cash, Cash Equivalents and Short-Term Investments | 552.65M | 434.84M | 444.96M | 232.92M | 171.10M | 258.58M |
| Total Debt | 2.76B | 32.85B | 26.76B | 21.99B | 18.60B | 15.95B |
| Total Liabilities | 34.51B | 32.67B | 29.78B | 24.67B | 20.83B | 18.01B |
| Stockholders Equity | 39.55B | 39.44B | 38.84B | 32.94B | 28.71B | 25.05B |
Cash Flow | ||||||
| Free Cash Flow | 2.18B | 3.99B | 3.45B | 2.89B | 2.47B | 1.30B |
| Operating Cash Flow | 4.17B | 3.99B | 3.57B | 2.96B | 2.56B | 1.32B |
| Investing Cash Flow | -8.22B | -5.66B | -3.34B | -9.35B | -8.39B | -6.44B |
| Financing Cash Flow | 3.84B | 1.68B | -21.16M | 6.44B | 5.74B | 4.58B |
Realty Income Technical Analysis
Negative
65.60
Price Trends
62.46
Negative
62.01
Negative
60.16
Positive
Market Momentum
-0.12
Positive
38.27
Neutral
8.71
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 65.6 is above the 20-day moving average (MA) of 64.07, above the 50-day MA of 62.46, and above the 200-day MA of 60.16, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.27 is Neutral, neither overbought nor oversold. The STOCH value of 8.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.32B | 20.99 | 14.86% | 3.73% | 5.13% | 28.20% | |
74 Outperform | $14.12B | 21.87 | 9.59% | 3.62% | 8.36% | 38.21% | |
73 Outperform | $16.41B | 27.10 | 5.84% | 3.95% | 3.82% | 2.94% | |
71 Outperform | $10.38B | 23.38 | 13.28% | 3.59% | 8.04% | 25.59% | |
66 Neutral | $59.15B | 45.18 | 3.36% | 4.94% | 10.76% | 33.50% | |
66 Neutral | $72.29B | 19.74 | 86.49% | 3.83% | 10.91% | -18.35% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
O
Realty Income
61.89
7.22
13.21%
KIM
Kimco Realty
24.11
3.93
19.46%
REG
Regency Centers
76.11
7.06
10.22%
SPG
Simon Property
220.55
59.01
36.53%
FRT
Federal Realty
117.13
28.16
31.65%
BRX
Brixmor Property
29.81
4.49
17.71%
Realty Income Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Realty Income earns Fitch A rating, boosts financing
Positive
Aug 5, 2026
For the quarter and six months ended June 30, 2026, Realty Income reported net income available to common stockholders of $344.0 million, or $0.37 per diluted share, and quarterly AFFO per share of $1.09, up 3.8% from a year earlier, on revenue of...
Business Operations and StrategyPrivate Placements and Financing
Realty Income Expands Credit Facilities and Liquidity Programs
Positive
Jul 13, 2026
On July 10, 2026, Realty Income Corporation closed a Fifth Amended and Restated Credit Agreement that recast and expanded its unsecured multicurrency revolving credit facilities from $4.0 billion to $5.5 billion, split into two $2.75 billion tranc...
Business Operations and StrategyPrivate Placements and Financing
Realty Income Expands Euro Debt Market Presence
Positive
Jul 7, 2026
On July 7, 2026, Realty Income Corporation closed an offering of €600.0 million aggregate principal amount of 3.625% notes due 2032, expanding its presence in the euro-denominated debt market. The notes were sold under a purchase agreement d...
Business Operations and StrategyPrivate Placements and Financing
Realty Income Announces Euro-Denominated Debt Offering
Neutral
Jun 30, 2026
On June 29, 2026, Realty Income Corporation entered into a purchase agreement with a syndicate of international banks to issue €600.0 million of 3.625% notes due 2032. The euro-denominated debt offering, expected to close on July 7, 2026 sub...
Business Operations and StrategyPrivate Placements and Financing
Realty Income Refreshes ATM Equity Program for Flexibility
Positive
Jun 29, 2026
On April 7, 2026, Realty Income issued $800 million of 4.750% senior unsecured notes due April 2033, priced to yield 5.047% and partially swapped into euros via a $500 million U.S. dollar-to-euro cross-currency swap, generating about €436 mi...
Executive/Board ChangesShareholder Meetings
Realty Income Shareholders Back Board, Auditor and Pay
Positive
May 22, 2026
At Realty Income’s annual meeting held on May 21, 2026, shareholders elected eleven directors to serve until the 2027 annual meeting, with all nominees receiving sufficient support to continue or assume their roles on the board. The vote con...
Business Operations and StrategyPrivate Placements and Financing
Realty Income Launches New At-the-Market Equity Program
Positive
May 8, 2026
On May 7, 2026, Realty Income Corporation entered into a new sales agreement with a broad syndicate of banks and brokers allowing the company to offer and sell up to 150,000,000 shares of common stock through an at-the-market equity program and re...
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Realty Income boosts 2026 outlook after strong quarter
Positive
May 6, 2026
Realty Income reported strong operating results for the quarter ended March 31, 2026, with net income available to common stockholders rising to $311.8 million, or $0.33 per share, and AFFO per share increasing 6.6% year-on-year to $1.13 on total ...
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.