Realty Income Corporation
- Open
- 65.61
- Day high
- 66.25
- Day low
- 65.31
- Prev close
- 65.60
- Volume
- 3.8M
- Mkt cap
- $59.3B
- P/E (TTM)
- 53.7
- EPS (TTM)
- $1.22
- P/B
- 1.5
- P/S
- 10.0
- Yield
- 4.95%
- Per share
- $3.24
Realty Income Corporation (O) is a Real Estate company listed on NYSE. The stock is up 13% over the past year. Drillr has 2 published research articles covering O.
Realty Income Corporation (O) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
O earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.40 | $0.33 | -18.0% | $1.4B | +3.3% |
| Feb 24, 2026 | $0.41 | $0.33 | -19.7% | $1.5B | +6.7% |
| Feb 20, 2024 | $0.32 | $0.30 | -6.3% | $1.1B | +5.2% |
| Aug 2, 2023 | $0.34 | $0.29 | -14.7% | $1.0B | +3.5% |
| May 3, 2023 | $0.34 | $0.34 | +0.0% | $944M | +4.0% |
| Feb 21, 2023 | $0.32 | $0.36 | +12.5% | $889M | +5.0% |
| Nov 2, 2022 | $0.33 | $0.36 | +9.1% | $837M | +2.4% |
| Aug 3, 2022 | $0.38 | $0.37 | -2.6% | $810M | +1.9% |
| May 4, 2022 | $0.42 | $0.34 | -19.0% | $807M | +7.0% |
| Feb 22, 2022 | $0.37 | $0.01 | -97.3% | $682M | +2.2% |
| May 3, 2021 | $0.30 | $0.26 | -13.3% | $442M | +4.7% |
| Feb 22, 2021 | $0.34 | $0.33 | -2.9% | $418M | -2.9% |
O insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | Redington Nealeofficer: See Remarks | Tax | 240 | $63.12 |
| May 26, 2026 | GILYARD REGINALD HAROLDdirector | Grant | 3,214 | — |
| May 26, 2026 | MCKEE MICHAEL Ddirector | Grant | 3,214 | — |
| May 26, 2026 | Hourihan Kimberlydirector | Grant | 3,214 | — |
| May 26, 2026 | LOPEZ GERARDO Idirector | Grant | 3,214 | — |
| May 26, 2026 | Almodovar Priscilladirector | Grant | 3,214 | — |
| May 26, 2026 | Preusse Mary Hogandirector | Grant | 3,214 | — |
| May 26, 2026 | Huskins Priya Cheriandirector | Grant | 3,214 | — |
| May 26, 2026 | McLaughlin Gregorydirector | Grant | 3,214 | — |
| May 26, 2026 | Jacobson Jeff Adirector | Grant | 3,214 | — |
| May 26, 2026 | Chapman A. Larrydirector | Grant | 3,214 | — |
| Apr 2, 2026 | Bushore Michelleofficer: See Remarks | Sell | 7,400 | $62.42 |
| Apr 1, 2026 | McLaughlin Gregorydirector | Sell | 3,275 | $61.87 |
| Mar 5, 2026 | Bushore Michelleofficer: See Remarks | Grant | 7,698 | — |
| Feb 19, 2026 | Kehle Shannonofficer: EVP, Chief People Officer | Grant | 2,256 | — |
Source: O SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full O insider & 13F page →O research & analysis
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Realty Income Corporation company profile
Overview
Realty Income Corporation (NYSE:O) is one of the largest and most established real estate investment trusts (REITs) in the United States, founded in 1969 and publicly traded since 1994. Known as "The Monthly Dividend Company," Realty Income has built a reputation for providing consistent monthly dividend payments to shareholders for over five decades. The company owns and operates a diversified portfolio of over 15,000 commercial real estate properties across multiple countries, primarily leased to retail, industrial, and other commercial tenants under long-term agreements. As an S&P 500 Dividend Aristocrat, Realty Income has increased its dividend 109 times since going public and has declared 608 consecutive monthly dividends throughout its operating history.
Business
Realty Income operates as a Real Estate Investment Trust (REIT) specializing in commercial real estate ownership and leasing. A REIT is a company that owns, operates, or finances income-generating real estate and must distribute at least 90% of its taxable income to shareholders as dividends. The company's core business involves acquiring commercial properties and leasing them to tenants under long-term, triple-net lease agreements. Triple-net leases are rental agreements where tenants are responsible for paying not only the base rent but also property taxes, insurance, and maintenance costs. This structure provides landlords like Realty Income with predictable, steady cash flows while transferring most property-related expenses and risks to tenants. The company's portfolio spans multiple business segments: 1. Retail Properties (approximately 80% of revenue): This includes standalone retail stores, shopping centers, and retail parks leased to various retailers, restaurants, pharmacies, and service providers. Major tenants include Walgreens, Dollar General, FedEx, 7-Eleven, and various grocery chains. 2. Industrial Properties (approximately 15% of revenue): Warehouses, distribution centers, and manufacturing facilities leased to logistics companies, manufacturers, and e-commerce operators. 3. Gaming and Entertainment (approximately 3% of revenue): Casinos, entertainment venues, and gaming facilities. 4. Other Commercial Properties (approximately 2% of revenue): Including data centers, healthcare facilities, and office buildings. The company operates primarily in the United States but has expanded internationally, with significant investments in the United Kingdom, Spain, Italy, and other European markets representing about 30-35% of total investment activity.
Revenue model
Realty Income generates revenue primarily through rental income from its commercial properties under long-term lease agreements. The company's business model is built around acquiring properties and leasing them to creditworthy tenants, typically for lease terms of 10-20 years with built-in rent escalations. The company's paying customers are commercial tenants across various industries, including national retail chains, regional operators, industrial companies, and service providers. These tenants pay monthly rent plus property expenses under triple-net lease structures, providing Realty Income with predictable cash flows that support its monthly dividend payments. Revenue growth comes from several sources: 1. Acquisitions of new properties, typically investing $3-4 billion annually at initial cash yields of 7-8%; 2. Same-store rent growth through contractual rent escalations and lease renewals, averaging 1.5-2.6% annually; 3. Development projects and property improvements that can generate higher yields. Factors that positively impact margins include: Lower interest rates reduce borrowing costs for acquisitions; Strong tenant credit quality minimizes bad debt expenses; Rent escalations and successful lease renewals above market rates; Geographic and tenant diversification reducing concentration risk; Economies of scale from portfolio growth. Factors that could pressure margins include: Rising interest rates increasing acquisition and refinancing costs; Economic downturns affecting tenant creditworthiness and occupancy rates; E-commerce growth potentially impacting retail tenant demand; Competition from other REITs and private capital for quality properties; Currency fluctuations affecting international investments; Property taxes and insurance cost inflation in triple-net structures primarily affect tenants, but can impact lease renewals and property values.
Competitive moat
Realty Income possesses a moderate but durable competitive moat built around several key advantages. The company's primary moat stems from its scale and diversification, operating one of the largest commercial real estate portfolios with over 15,000 properties across multiple geographies, asset types, and tenant industries. This diversification reduces concentration risk and provides stability that smaller competitors cannot match. The company's investment-grade credit rating (A3/A-) and access to low-cost capital through public debt and equity markets creates a significant competitive advantage in property acquisitions. Realty Income can often outbid private investors and smaller REITs due to its lower cost of capital, allowing it to acquire quality properties at attractive yields. Tenant relationships and expertise represent another moat component. The company has developed deep relationships with national retailers and corporations, often becoming their preferred real estate partner for sale-leaseback transactions and expansion needs. Its specialized knowledge in underwriting triple-net leases and managing diverse tenant relationships creates operational advantages. However, the moat faces several challenges: Competition from private capital, including private equity and sovereign wealth funds, has intensified for quality commercial real estate. E-commerce disruption continues to threaten traditional retail tenants, though Realty Income has focused on non-discretionary and service-oriented businesses that are more resilient. Interest rate sensitivity affects both acquisition opportunities and the company's cost of capital. Capital intensity means the company must continuously access capital markets for growth, making it dependent on favorable market conditions. The moat is moderately strong due to scale advantages and tenant relationships, but the commercial real estate sector's competitive nature and economic sensitivity limit its durability compared to companies with stronger network effects or switching costs.
Risks & safety
Realty Income demonstrates a moderate margin of safety with generally conservative financial management but some leverage concerns. • Debt and Solvency: Net debt-to-EBITDA ratio of 5.4x is elevated for a REIT, though manageable; Total debt-to-equity ratio of 0.71x; Strong liquidity with $5.2 billion in available capital; Only 3.4% of debt is variable rate, providing interest rate protection; Investment-grade credit ratings (A3/A-) provide capital market access • Cash Flow Stability: Positive free cash flow of $787 million in Q1 2025; 98.5% portfolio occupancy rate provides stable income; Monthly dividend coverage supported by predictable triple-net lease cash flows; Rent recapture rate of 103.9% demonstrates pricing power • Valuation Metrics: P/E ratio of 51.8x appears elevated; EV/EBITDA of 17.3x is reasonable for a quality REIT; Price-to-book ratio of 1.33x suggests modest premium to asset value; Current trading price near $57 compared to Graham number of $16.61 indicates potential overvaluation • Other Considerations: Credit watch list at 4.8% of portfolio rent is manageable; Geographic and tenant diversification reduces concentration risk; Interest rate sensitivity remains a key risk factor; Dependence on capital markets for growth creates refinancing risk
Recent development
Over the past few years, Realty Income has pursued several strategic initiatives to diversify and strengthen its platform. The company completed a major merger with Spirit Realty Capital in January 2024, significantly expanding its portfolio and market presence. This transaction enhanced the company's scale and diversification across asset types and geographies. International expansion has been a key focus, with European investments now representing 30-35% of total investment activity. The company has established operations in the United Kingdom, Spain, Italy, and is exploring opportunities in Poland. European retail parks have become a particular area of emphasis, offering below-market rents and repositioning opportunities that can generate yield uplifts of 10.5-11%. The company has diversified into new asset classes and verticals, including data centers through a joint venture with Digital Realty, gaming properties with acquisitions like the Encore Boston Harbor casino, healthcare real estate including dental practices, and industrial properties. These moves help reduce dependence on traditional retail real estate. A significant recent development is the launch of a private capital initiative with the creation of a US Core Plus Fund. This strategy aims to access institutional capital beyond public markets, generate fee income, and pursue lower-yield but higher-growth investments that may not be suitable for the public REIT structure. The company has also invested heavily in technology and analytics, developing proprietary predictive tools to optimize portfolio management, identify disposition candidates, and enhance underwriting capabilities. This technological advancement supports more sophisticated investment decision-making and portfolio optimization strategies.
O company profile · for informational purposes only — not investment advice.
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