Morningstar Rating

Stock Research and Analysis

by Todd Lukasik, CFA

Bulls Say

Realty Income is built to provide a reliable, slow-growing, monthly dividend. Its tenants sign long-term leases with regular rent bumps.
With a conservative capital structure and plenty of capacity available on its credit facility, Realty Income should be able to take advantage of any attractive acquisitions that become available.
Realty Income's historically successful conservative approach to acquisitions and managing its business should continue to serve shareholders well, through all types of market conditions. Read more 

Bears Say

As Realty Income gets larger, it takes a larger pipeline of acquisition deals to meaningfully affect its ability to raise its dividend.
Realty Income's diversification strategy to include more industrial, distribution, office, and manufacturing properties takes the firm away from its traditional (and historically successful) retail focus and introduces properties with less attractive leasing characteristics into its portfolio.
REITs such as Realty Income with long-term leases may perform poorly when investors are concerned about rising interest rates and/or higher rates of inflation. Read more 

Management

We view Realty Income's stewardship as exemplary.
CEO John Case has more than 20 years of experience in real estate and has been with Realty Income since 2010. CFO Paul Meurer has been with the firm since 2001 and was an investment banker to the real   Read more 

Profile

Realty Income owns more than 4,200 properties, most of which are freestanding, single-tenant, triple-net-leased retail properties. Its properties are located in 49 states   Read more 

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