Realty Income (O) AI Stock Analysis

• Market Cap: $52.87B
• Dividend Yield: 5.46%
• Average Volume (3M): 4.90M
• Price to Earnings (P/E): 56.4
• Beta (1Y): 0.23
• Revenue Growth: 15.45%
• EPS Growth: -5.00%
• Country: US
• Employees: 468
• Sector: Real Estate
• Sector Strength: 47
• Industry: REIT - Retail
• EPS (TTM): 0.22
• Shares Outstanding: 914,306,100
• 10 Day Avg. Volume: 5,109,403
• 30 Day Avg. Volume: 4,902,463
• 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: 1.55
• Enterprise Value/Revenue: 15.00
• Enterprise Value/Gross Profit: 18.88
• Enterprise Value/Ebitda: 19.13
• 1Y Price Target: $62.09
• Price Target Upside: 6.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 77 Outperform
• Price Target: $66.00 ▲(12.86% Upside)

Realty Income's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The company's strategic investments and high occupancy rates contribute positively. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score. Technical indicators support a moderately bullish outlook.

Positive Factors

Earnings Performance

Realty Income has a great track record for performance in recessions, and has a good chance of outperforming in another economic downturn.

Investment Activity

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

Valuation

The company believes their platform of $80bn of EV with ~16k properties and over 500 employees in 8 countries is undervalued in the public market.

Negative Factors

Earnings Guidance

Realty Income's initial FY25 AFFO/sh guidance implies just 1.4% growth, falling short of consensus and peers' growth profiles.

Interest Costs

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

Tenant Concentration

Tenant concentrations are increasing, with Realty Income deriving more than a quarter of its rents from C-stores, grocers, and dollar stores, raising concerns about diversification.

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 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 robust revenue growth, high profitability margins, and effective cash flow management. The balance sheet is stable with moderate leverage and a strong equity position.

Income Statement

Realty Income shows strong financial performance with robust growth in total revenue, which increased from $3.34 billion in 2022 to $5.39 billion in TTM. The company maintains a high gross profit margin of approximately 92.7% and a solid EBIT margin of 44.4% in TTM. Net profit margin improved to 18.1%, indicating healthy profitability. The revenue growth rate from 2024 to TTM is 2.28%, suggesting steady expansion.

Balance Sheet

The company exhibits a stable balance sheet with a moderate debt-to-equity ratio of 0.71, reflecting manageable leverage levels. Realty Income's equity ratio stands at 55.9%, indicating a strong equity base relative to its assets. Return on equity improved to 2.51% in TTM, signaling effective use of shareholder funds despite being on the lower side.

Cash Flow

Realty Income demonstrates robust cash flow management with operating cash flow of $3.58 billion in TTM, consistently covering its free cash flow needs. The free cash flow to net income ratio is favorable, highlighting efficient cash generation relative to profits. The company maintains a strong operating cash flow to net income ratio, indicating effective cash conversion from operations.

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	4.34B	4.89B	3.76B	1.45B	1.95B	1.55B
EBITDA	4.28B	4.33B	3.60B	2.93B	1.85B	1.55B
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: 58.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 58.48 is above the 20-day moving average (MA) of 57.23, above the 50-day MA of 57.01, and above the 200-day MA of 55.02, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 62.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 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	78 Outperform	$25.90B	33.16	5.99%	3.92%	5.66%	2.98%
KIM	77 Outperform	$14.33B	25.53	5.63%	4.67%	10.46%	56.11%
O	77 Outperform	$52.87B	56.41	2.35%	5.46%	15.45%	-5.00%
FRT	74 Outperform	$8.14B	23.77	11.04%	4.69%	6.00%	15.77%
NNN	73 Outperform	$7.77B	19.56	9.18%	5.66%	4.82%	-5.18%
SPG	73 Outperform	$64.95B	24.37	79.83%	4.82%	3.36%	-10.55%
Sector *	63 Neutral	$6.83B	13.32	-1.02%	7.20%	3.66%	-22.87%

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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

Realty Income Reports Strong 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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.

Realty Income Reports Strong 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.

The most recent analyst rating on (O) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Realty Income stock, see the O Stock Forecast page.