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Realty Income
(NYSE:O)
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Rating:71Outperform
Price Target:
$70.00
â–²(7.54% Upside)
Action:Reiterated
Date:07/14/26
The score is driven primarily by solid financial performance (strong cash generation and steady profitability) and a constructive earnings outlook with raised AFFO guidance and expanded investment capacity. Technicals are moderately supportive with price above key moving averages. These positives are tempered by a high valuation (very elevated P/E despite a strong dividend yield) and balance-sheet leverage/low ROE, which can constrain flexibility if rates stay higher or growth normalizes.
Positive Factors
Operating Cash Generation
Sustained growth in operating cash flow to roughly $4.1B TTM demonstrates durable rent collection and strong portfolio cash conversion. This supports the REIT's capacity to fund dividends, reinvest, and service debt without relying excessively on capital markets, improving long-term payout reliability.
Negative Factors
Elevated Leverage
Substantially higher nominal debt and increased leverage relative to prior years reduce financial flexibility if rates remain elevated. Greater interest-cost sensitivity can compress distributable cash flow and constrain accretive acquisition capacity during periods of cap-rate or financing volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Cash Generation
Sustained growth in operating cash flow to roughly $4.1B TTM demonstrates durable rent collection and strong portfolio cash conversion. This supports the REIT's capacity to fund dividends, reinvest, and service debt without relying excessively on capital markets, improving long-term payout reliability.
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
$61.31B
Dividend Yield5.64%
Average Volume (3M)5.84M
Price to Earnings (P/E)53.9
Beta (1Y)0.14
Revenue Growth9.49%
EPS Growth10.53%
CountryUS
Employees544
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)1.22
Shares Outstanding932,492,550
10 Day Avg. Volume4,773,992
30 Day Avg. Volume5,838,442
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
$67.65Price Target Upside3.93% Upside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)1.54
Revenue Forecast (FY)$5.74B
Realty Income Business Overview & Revenue Model
Company Description
Known as "The Monthly Dividend Company," Realty Income is an S&P 500 corporation committed to delivering reliable monthly income to its shareholders. Operating as a Real Estate Investment Trust (REIT), its monthly payouts are generated from the co...
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, material growth in AFFO per share (+6.6% YoY), expanded investment activity ($2.8B deployed in Q1) and deliberate scaling of a new private capital ecosystem (Perpetual Life fund $1.7B cornerstone, Apollo $1B, GIC JV), enabling the company to raise investment guidance and slightly lift AFFO guidance. Liquidity and diversified debt sources were highlighted as strengths, and credit loss guidance was reduced. Offsetting these positives are pockets of sector weakness (theaters -10% same-store), an episodic nature of lease termination income that may not recur, ongoing rate and cap-rate uncertainty, and selectivity-driven passivity on many sourced deals. On balance the positive operating results, strategic capital partnerships, raised guidance and strong liquidity materially outweigh the noted challenges, but execution risk on credit-to-equity conversions and interest-rate/cap-rate volatility remain key watch items.Positive Updates
AFFO Per Share Growth and Guidance Raise
AFFO per share of $1.13 in Q1, up 6.6% year-over-year. Company raised the midpoint of full-year AFFO per share guidance by $0.025 (≈60 bps) and now expects AFFO per share of $4.41–$4.44 for 2026.
Negative Updates
Theater Same-Store Revenue Decline
Same-store rental revenue for the theater segment declined ~10% year-over-year in Q1, driven by prior accounting changes (cash-to-accrual timing), restructurings and shifts to percentage rent arrangements that lowered base rents on a comp basis.
Read all updates
Q1-2026 Updates
Positive
Negative
AFFO Per Share Growth and Guidance Raise
AFFO per share of $1.13 in Q1, up 6.6% year-over-year. Company raised the midpoint of full-year AFFO per share guidance by $0.025 (≈60 bps) and now expects AFFO per share of $4.41–$4.44 for 2026.
Read all positive updates
Company Guidance
Realty Income raised 2026 guidance after a strong Q1: AFFO per share was $1.13 (up 6.6% YoY) and lease termination income recognized was $40.2M, prompting a $0.025 (≈60 bps) increase to the FY AFFO midpoint and an updated AFFO per share range of $4.41–$4.44 while investment volume guidance was increased to $9.5B (100% basis). In Q1 the company invested ~ $2.8B (~$2.6B pro rata) at a 7.1% initial weighted average cash yield, including ~ $1B of credit/structured investments (e.g., $375M mezzanine loan and $190M data‑center loan); it completed a $1.7B cornerstone raise for the U.S. Core+ fund, secured $1B from Apollo and a $1.5B GIC JV, and expects Core+ AUM to grow toward $3.5–$4.0B. Liquidity was ~ $3.9B pro rata (ATM unsettled ≈ $1.4B after a $174M raise), net debt / annualized pro forma adjusted EBITDA was 5.2x (4.9x inclusive of forward equity), the company issued $800M of 4.75% notes due 2033 (swapped $500M to euros for a blended 4.44% yield), arranged a $694M municipal‑prepay term loan at 4.91% (4.34% all‑in after a $500M swap), raised lease termination income guidance to $45–$50M, and lowered expected credit losses to ~40 bps of rental revenue.Realty Income Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.92B | 5.75B | 5.27B | 4.08B | 3.34B | 2.08B |
| Gross Profit | 4.06B | 5.16B | 4.89B | 3.76B | 3.12B | 1.95B |
| EBITDA | 4.22B | 3.55B | 4.33B | 3.60B | 2.59B | 1.29B |
| Net Income | 1.12B | 1.06B | 860.77M | 872.31M | 869.41M | 359.46M |
Balance Sheet | ||||||
| Total Assets | 74.55B | 72.80B | 68.84B | 57.78B | 49.67B | 43.14B |
| Cash, Cash Equivalents and Short-Term Investments | 373.54M | 434.84M | 444.96M | 232.92M | 171.10M | 258.58M |
| Total Debt | 30.17B | 32.85B | 26.76B | 21.99B | 18.60B | 15.95B |
| Total Liabilities | 33.32B | 32.67B | 29.78B | 24.67B | 20.83B | 18.01B |
| Stockholders Equity | 39.15B | 39.44B | 38.84B | 32.94B | 28.71B | 25.05B |
Cash Flow | ||||||
| Free Cash Flow | 4.06B | 3.99B | 3.45B | 2.89B | 2.47B | 1.30B |
| Operating Cash Flow | 4.08B | 3.99B | 3.57B | 2.96B | 2.56B | 1.32B |
| Investing Cash Flow | -6.93B | -5.66B | -3.34B | -9.35B | -8.39B | -6.44B |
| Financing Cash Flow | 3.01B | 1.68B | -21.16M | 6.44B | 5.74B | 4.58B |
Realty Income Technical Analysis
Positive
65.09
Price Trends
61.87
Positive
62.29
Positive
59.86
Positive
Market Momentum
0.90
Negative
65.72
Neutral
69.32
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 65.09 is above the 20-day moving average (MA) of 62.89, above the 50-day MA of 61.87, and above the 200-day MA of 59.86, indicating a bullish trend. The MACD of 0.90 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 69.32 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.95B | 21.73 | 15.55% | 4.38% | 7.43% | 65.72% | |
75 Outperform | $74.17B | 15.94 | 125.93% | 4.56% | 10.91% | -18.35% | |
75 Outperform | $9.99B | 22.31 | 14.86% | 4.41% | 5.92% | 37.44% | |
73 Outperform | $15.14B | 24.03 | 9.51% | 4.15% | 7.84% | 37.55% | |
72 Outperform | $17.62B | 29.67 | 5.90% | 5.02% | 4.01% | 13.27% | |
71 Outperform | $61.31B | 53.86 | 2.86% | 5.64% | 9.49% | 10.53% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
O
Realty Income
65.71
12.28
22.98%
KIM
Kimco Realty
26.12
5.47
26.49%
REG
Regency Centers
82.68
15.67
23.38%
SPG
Simon Property
228.70
72.38
46.30%
FRT
Federal Realty
126.02
35.57
39.32%
BRX
Brixmor Property
32.57
8.13
33.25%
Realty Income Corporate Events
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.