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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:08/17/26
The score is anchored by solid but recently weakening financial performance (margin compression and a sharp TTM free-cash-flow decline, plus reduced confidence in the latest leverage read due to inconsistent TTM debt data). Offsetting this, the latest earnings call was notably positive with raised AFFO guidance, higher investment guidance, strong liquidity, and improving portfolio/leasing metrics. Technicals are neutral-to-soft and valuation is mixed—an attractive yield but a high P/E.
Positive Factors
High Occupancy and Rent Recapture
Very high occupancy and above-100% rent recapture support durable rental cash flows, demonstrate pricing power at lease rollover, and reduce the risk that releasing activity materially weakens portfolio income.
Negative Factors
Recent Margin and Cash Flow Compression
The recent deterioration in profitability and free cash flow weakens the quality of the latest earnings trend. If sustained, it could constrain internally funded growth and increase reliance on external capital to support acquisitions and distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Rent Recapture
Very high occupancy and above-100% rent recapture support durable rental cash flows, demonstrate pricing power at lease rollover, and reduce the risk that releasing activity materially weakens portfolio income.
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
$59.56B
Dividend Yield5.13%
Average Volume (3M)5.41M
Price to Earnings (P/E)46.1
Beta (1Y)0.16
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
$67.90Price Target Upside3.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)1.53
Revenue Forecast (FY)$5.69B
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 | 5.93B | 5.75B | 5.27B | 4.08B | 3.34B | 2.08B |
| Gross Profit | 4.07B | 5.16B | 4.89B | 3.76B | 3.12B | 1.95B |
| EBITDA | 4.42B | 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
Positive
65.60
Price Trends
62.92
Positive
62.23
Positive
60.40
Positive
Market Momentum
-0.19
Positive
51.24
Neutral
64.29
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 65.6 is above the 20-day moving average (MA) of 63.30, above the 50-day MA of 62.92, and above the 200-day MA of 60.40, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 64.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $9.13B | 20.76 | 14.39% | 3.73% | 5.13% | 28.20% | |
74 Outperform | $13.99B | 21.99 | 9.59% | 3.62% | 8.36% | 38.21% | |
73 Outperform | $16.31B | 27.14 | 5.84% | 3.95% | 3.82% | 2.94% | |
71 Outperform | $10.28B | 23.40 | 13.28% | 3.59% | 8.04% | 25.59% | |
66 Neutral | $59.56B | 46.11 | 3.36% | 4.94% | 10.76% | 33.50% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $72.21B | 15.55 | 112.71% | 3.83% | 15.01% | -25.41% |
* Real Estate Sector Average
O
Realty Income
63.17
7.31
13.09%
KIM
Kimco Realty
24.16
2.96
13.94%
REG
Regency Centers
76.51
7.01
10.08%
SPG
Simon Property
219.90
51.36
30.47%
FRT
Federal Realty
117.25
21.93
23.00%
BRX
Brixmor Property
29.48
2.80
10.48%
Realty Income Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Realty Income Closes Major Convertible Notes Offering
Positive
Aug 14, 2026
On August 14, 2026, Realty Income closed a private offering of $1.0 billion aggregate principal amount of 3.750% convertible senior notes due 2031, sold to qualified institutional buyers under Rule 144A. The notes, which include the full exercise ...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Realty Income Upsizes Convertible Notes Offering to $875 Million
Positive
Aug 12, 2026
On August 11, 2026, Realty Income priced an upsized private offering of $875 million aggregate principal amount of 3.750% convertible senior notes due 2031 to qualified institutional buyers under Rule 144A, increasing the deal from a previously an...
Business Operations and StrategyStock BuybackFinancial DisclosuresPrivate Placements and Financing
Realty Income Announces Convertible Notes Offering to Strengthen Capital
Positive
Aug 11, 2026
During the quarter ended June 30, 2026, Realty Income invested about $2.6 billion, with a pro‑rata share of $2.1 billion, across properties, developments, joint ventures and loans, achieving an initial weighted average cash yield of roughly ...
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...
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.