Realty Income (O) AI Stock Analysis

• Market Cap: $54.21B
• Dividend Yield: 5.4%
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): 57.8
• Beta (1Y): 0.23
• Revenue Growth: 15.45%
• EPS Growth: -5.00%
• Country: US
• Employees: 468
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Retail
• EPS (TTM): 0.22
• Shares Outstanding: 914,306,100
• 10 Day Avg. Volume: 4,871,176
• 30 Day Avg. Volume: 5,033,621
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 15.00
• Enterprise Value/Gross Profit: 16.19
• Enterprise Value/Ebitda: 18.12
• 1Y Price Target: $62.08
• Price Target Upside: 4.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $66.00 ▲(11.32% Upside)

Realty Income's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust cash flow and strategic European investments bolster its position. However, a high P/E ratio and potential credit losses present risks. The technical indicators support a stable upward trend, contributing to a favorable overall assessment.

Positive Factors

Dividend Increase

The company's monthly dividend was raised by 3.4% year-over-year.

Financial Stability

Realty Income Corporation's leverage remained stable with a Net Debt to EBITDAre ratio of 5.4x, and it has $2.9 billion of liquidity.

Investment Activity

Realty Income Corporation's investments are running ahead of schedule, which has led to their guidance being reiterated.

Negative Factors

Debt Refinancing

The 2027 maturities in particular will be difficult to refinance at a similar rate to in place debt costs.

Interest Cost

Interest cost headwinds are limiting AFFO per share growth in the estimated years ahead.

Occupancy

There was a slight dip in occupancy to 98.5%, which is a 20 basis points decrease compared to the previous quarter.

Realty Income Business Overview & Revenue Model

Company Description

Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) that primarily invests in commercial properties under long-term net lease agreements. The company is known for its monthly dividend payments and focuses on sectors such as convenience stores, drug stores, dollar stores, and other retail and commercial properties. Realty Income's portfolio consists of properties that are leased to tenants on a long-term basis, which provides a steady stream of rental income.

How the Company Makes Money

Realty Income generates revenue primarily through the leasing of its properties to tenants under long-term net lease agreements. In these arrangements, tenants are responsible for paying property expenses such as maintenance, taxes, and insurance, which allows Realty Income to collect rent without incurring significant operating costs. The company focuses on acquiring high-quality, single-tenant properties with creditworthy tenants, which helps ensure reliable and consistent rental income. Additionally, Realty Income often engages in sale-leaseback transactions where it purchases properties from companies and leases them back, creating immediate cash flow. The company's diversified portfolio and strategic acquisitions contribute to its earnings, while its commitment to providing monthly dividends to shareholders enhances its appeal as an income-generating investment.

Realty Income Financial Statement Overview

Summary

Realty Income exhibits strong financial health with consistent revenue growth and robust cash flow generation. The company maintains a stable balance sheet, though there is room for improvement in ROE. Overall, effective management of operational and financial resources is evident.

Income Statement

Realty Income demonstrates strong revenue growth with a TTM increase of 1.32%, supported by a solid gross profit margin of 79.45% and a net profit margin of 16.77%. The EBIT and EBITDA margins are robust at 38.17% and 78.42%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio of 0.74 reflects a moderate leverage level, which is typical for the REIT industry. The return on equity is relatively low at 2.36%, indicating room for improvement in generating returns for shareholders. The equity ratio stands at 54.83%, showcasing a stable capital structure with a strong equity base.

Cash Flow

Realty Income's cash flow performance is impressive, with a free cash flow growth rate of 48.6% in the TTM. The operating cash flow to net income ratio of 1.29 and a free cash flow to net income ratio of 0.99 highlight strong cash generation capabilities. This positions the company well for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.46B	5.27B	4.08B	3.34B	2.08B	1.65B
Gross Profit	5.06B	4.89B	3.76B	3.12B	1.95B	1.54B
EBITDA	4.52B	4.33B	3.60B	2.98B	1.85B	1.38B
Net Income	915.83M	860.77M	872.31M	869.41M	359.46M	395.49M
Balance Sheet
Total Assets	71.42B	68.84B	57.78B	49.67B	43.14B	20.74B
Cash, Cash Equivalents and Short-Term Investments	800.45M	444.96M	232.92M	171.10M	258.58M	824.48M
Total Debt	28.87B	26.76B	21.99B	18.60B	15.95B	8.94B
Total Liabilities	32.06B	29.78B	24.67B	20.83B	18.01B	9.72B
Stockholders Equity	39.15B	38.84B	32.94B	28.71B	25.05B	10.99B
Cash Flow
Free Cash Flow	3.64B	3.57B	2.96B	2.56B	1.30B	1.11B
Operating Cash Flow	3.66B	3.57B	2.96B	2.56B	1.32B	1.12B
Investing Cash Flow	-4.78B	-3.34B	-9.35B	-8.39B	-6.44B	-2.03B
Financing Cash Flow	1.47B	-21.16M	6.44B	5.74B	4.58B	1.69B

Realty Income Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 59.29 is above the 20-day moving average (MA) of 58.14, above the 50-day MA of 57.27, and above the 200-day MA of 54.96, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.25 is Neutral, 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	81 Outperform	$26.83B	34.36	5.99%	3.78%	5.66%	2.98%
KIM	79 Outperform	$15.41B	27.46	5.63%	4.39%	10.46%	56.11%
O	77 Outperform	$54.21B	57.84	2.35%	5.40%	15.45%	-5.00%
BRX	75 Outperform	$8.63B	25.80	11.52%	4.02%	5.98%	12.11%
FRT	74 Outperform	$8.77B	25.61	11.04%	4.29%	6.00%	15.77%
SPG	73 Outperform	$68.75B	25.80	79.83%	4.58%	3.36%	-10.55%
Sector *	63 Neutral	$7.09B	13.59	-0.50%	6.85%	4.08%	-25.24%

Realty Income Corporate Events

Realty Income Updates Federal Tax Considerations

Realty Income Corporation has updated its United States federal income tax considerations, replacing previous discussions in their prospectus and supplements. This update is significant for stakeholders as it outlines the company’s continued qualification and operation as a REIT, which impacts their tax obligations and investment attractiveness. The changes reflect the complex and evolving nature of tax regulations affecting REITs, highlighting the importance of compliance with federal tax laws to maintain favorable tax treatment.

Realty Income Reports Strong Q2 2025 Results

On August 6, 2025, Realty Income Corporation announced its operating results for the three and six months ended June 30, 2025. The company reported a net income of $196.9 million for the quarter, with an AFFO per share of $1.05. Realty Income invested $1.2 billion during the second quarter, with a substantial portion of investments in Europe, and increased its 2025 investment guidance to approximately $5.0 billion. The company achieved a rent recapture rate of 103.4% on re-leased properties and announced its 111th consecutive quarterly dividend increase. Realty Income’s portfolio occupancy was at 98.6% as of June 30, 2025, demonstrating its strong operational performance and strategic positioning in the market.

Realty Income Updates Term Loan Agreements

On June 23, 2025, Realty Income Corporation announced amendments to its existing term loan agreements with Wells Fargo and Toronto Dominion, aligning them with its recently updated credit agreement. These amendments involve a $300 million term loan due in 2025 and a $500 million term loan due in 2027, as well as multi-currency loans allowing up to $1.5 billion in borrowings, potentially impacting the company’s financial strategy and market positioning.

Realty Income Closes €1.3 Billion Notes Offering

On June 20, 2025, Realty Income Corporation successfully closed its offering of €650 million in 3.375% Notes due 2031 and another €650 million in 3.875% Notes due 2035. This financial maneuver, facilitated by major financial institutions, is expected to bolster the company’s capital structure and enhance its market positioning.

Realty Income Announces €1.3 Billion Notes Offering

On June 11, 2025, Realty Income Corporation announced a purchase agreement to issue and sell €650 million of 3.375% Notes due 2031 and €650 million of 3.875% Notes due 2035 to a group of underwriters. The offering is expected to close on June 20, 2025, subject to customary conditions, potentially impacting the company’s financial strategy and market positioning.

Realty Income Reports Strong Liquidity Position

On June 11, 2025, Realty Income Corporation provided updates on its capital raising and liquidity status, revealing a liquidity position of $4.6 billion as of June 6, 2025. This includes cash and cash equivalents, unsettled ATM forward equity, and availability under its credit facilities, indicating a strong financial position to support its operations and strategic initiatives.