Skip to Content

Realty Income Corp O

Morningstar Rating
$52.94 +0.12 (0.23%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Realty Income Earnings: Executed $2.7 Billion in Acquisitions at an Average Yield of 7.6%

Fourth-quarter results for no-moat Realty Income were slightly better than we anticipated, giving us confidence in our $76 fair value estimate. Economic occupancy declined 10 basis points sequentially to 98.9%, in line with our estimate. Releasing spreads remained positive at 3.6% in the fourth quarter, also relatively in line with our estimate of new rent being 3.9% higher than prior rent terms. Same-store net operating income growth came in at 2.6%, slightly better than our 1.3% estimate. The company reported in the fourth quarter the acquisition of new properties worth $1.28 billion at a 7.1% acquisition cap rate, $587 million of development properties at a 6.9% yield, and $858 million in other investments that include the preferred equity investment in the Bellagio joint venture at an average yield of 8.7%. Combined, Realty Income reported adjusted funds from operations, or AFFO, of $1.01 per share in the fourth quarter, a penny better than our $1.00 estimate.

Price vs Fair Value

O is trading at a 30% discount.
Price
$52.94
Fair Value
$59.00
Uncertainty
Low
1-Star Price
$19.00
5-Star Price
$61.20
Economic Moat
Dynxx
Capital Allocation
Lgqsclzt

Bulls Say, Bears Say

Bulls

Realty Income provides a reliable, albeit slow-growing, monthly dividend built on a steadily performing underlying portfolio through various market conditions.

Bears

It will take an increasingly greater volume of attractive risk-adjusted acquisitions to create meaningful shareholder value growth, possibly pushing Realty Income to take more risk as competition expands for its traditionally targeted assets.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if O is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$52.82
Day Range
$52.7353.42
52-Week Range
$45.0465.85
Bid/Ask
$52.94 / $53.45
Market Cap
$45.59 Bil
Volume/Avg
5.2 Mil / 7.5 Mil

Key Statistics

Price/Earnings (Normalized)
37.34
Price/Sales
8.85
Dividend Yield (Trailing)
5.79%
Dividend Yield (Forward)
5.81%
Total Yield
5.79%

Company Profile

Realty Income owns roughly 13,300 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states and Puerto Rico and are leased to 250 tenants from 47 industries. Recent acquisitions have added industrial, gaming, office, manufacturing, and distribution properties, which make up roughly 17% of revenue.
Sector
Real Estate
Industry
REIT - Retail
Stock Style Box
Mid Core
Total Number of Employees
418

Competitors

Valuation

Metric
O
FRT
REG
Price/Earnings (Normalized)
37.3438.2828.29
Price/Book Value
1.182.981.62
Price/Sales
8.857.258.16
Price/Cash Flow
11.8914.8314.45
Price/Earnings
O
FRT
REG

Financial Strength

Metric
O
FRT
REG
Quick Ratio
1.491.550.59
Current Ratio
1.531.550.64
Interest Coverage
2.102.453.37
Quick Ratio
O
FRT
REG

Profitability

Metric
O
FRT
REG
Return on Assets (Normalized)
2.07%3.11%3.33%
Return on Equity (Normalized)
3.61%9.35%6.00%
Return on Invested Capital (Normalized)
3.47%4.99%4.71%
Return on Assets
O
FRT
REG
See how this stock stacks up to its competitors with Morningstar Investor

REIT - Retail Industry Comparables

Sponsor Center