(O) Realty Income - Overview
Sector: Real Estate | Industry: REIT - Retail | Exchange: NYSE (USA) | Market Cap: 57.833m USD | Total Return: 17.5% in 12m
Avg Turnover: 324M
EPS Trend: -40.1%
Qual. Beats: 0
Rev. Trend: 97.5%
Qual. Beats: 14
Warnings
High Debt/EBITDA (7.4) with thin interest coverage (1.5)
Altman Z'' 0.71 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Realty Income Corporation (NYSE: O) is an S&P 500 real estate investment trust specializing in free-standing, single-tenant commercial properties. The company operates under a triple-net lease structure, a business model where tenants are responsible for property taxes, insurance, and maintenance, reducing the REITs operational expense volatility. As of late 2025, the portfolio includes over 15,500 properties across the United States and Europe.
The firm focuses on retail and industrial assets leased to high-credit tenants, aiming to generate consistent cash flow. This sector typically benefits from long-term lease agreements, often exceeding 10 years, which provide structural stability through various economic cycles. Realty Income is a constituent of the S&P 500 Dividend Aristocrats index, having achieved more than 31 consecutive years of dividend growth while maintaining a monthly payment frequency.
To better understand how these recurring payouts align with your portfolio goals, consider reviewing the detailed metrics available on ValueRay. Founded in 1969 and listed on the NYSE since 1994, the company continues to function as a primary capital provider for global corporate clients seeking sale-leaseback transactions.
- Interest rate fluctuations directly impact cost of capital and acquisition yields
- Triple-net lease structure transfers property operating expenses to commercial tenants
- Consolidation of retail real estate assets drives scale and rental income growth
- International expansion into European markets diversifies geographic revenue streams
- Maintaining investment grade credit rating ensures access to low cost debt markets
| Net Income: 1.12b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.46 > 1.0 |
| NWC/Revenue: -38.45% < 20% (prev 24.23%; Δ -62.69% < -1%) |
| CFO/TA 0.05 > 3% & CFO 4.08b > Net Income 1.12b |
| Net Debt (31.3b) to EBITDA (4.22b): 7.41 < 3 |
| Current Ratio: 0.40 > 1.5 & < 3 |
| Outstanding Shares: last quarter (904.8m) vs 12m ago 1.39% < -2% |
| Gross Margin: 68.62% > 18% (prev 0.93%; Δ 6.77k% > 0.5%) |
| Asset Turnover: 8.20% > 50% (prev 7.73%; Δ 0.47% > 0%) |
| Interest Coverage Ratio: 1.52 > 6 (EBITDA TTM 4.22b / Interest Expense TTM 1.14b) |
| A: -0.03 (Total Current Assets 1.49b - Total Current Liabilities 3.77b) / Total Assets 74.6b |
| B: -0.15 (Retained Earnings -11.0b / Total Assets 74.6b) |
| C: 0.02 (EBIT TTM 1.73b / Avg Total Assets 72.2b) |
| D: 1.17 (Book Value of Equity 39.1b / Total Liabilities 33.3b) |
| Altman-Z'' = 0.71 = B |
| DSRI: 0.28 (Receivables 1.12b/3.68b, Revenue 5.92b/5.39b) |
| GMI: 1.35 (GM 68.62% / 92.67%) |
| AQI: 1.05 (AQ_t 0.96 / AQ_t-1 0.92) |
| SGI: 1.10 (Revenue 5.92b / 5.39b) |
| TATA: -0.04 (NI 1.12b - CFO 4.08b) / TA 74.6b) |
| Beneish M = -3.25 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 62.45 with a total of 4,929,299 shares traded.
Over the past week, the price has changed by +1.20%,
over one month by -0.05%,
over three months by -5.02% and
over the past year by +17.46%.
Realty Income has received a consensus analysts rating of 3.48. Therefore, it is recommended to hold O.
- StrongBuy: 5
- Buy: 1
- Hold: 17
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 68.5 | 9.6% |
P/E Trailing = 50.8361
P/E Forward = 38.9105
P/S = 9.7869
P/B = 1.4823
P/EG = 5.7492
Revenue TTM = 5.92b USD
EBIT TTM = 1.73b USD
EBITDA TTM = 4.22b USD
Long Term Debt = 27.3b USD (from longTermDebt, last quarter)
Short Term Debt = 2.31b USD (from shortLongTermDebt, last quarter)
Debt = 31.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 545.1m
Net Debt = 31.3b USD (calculated: Debt 31.7b - CCE 373.5m)
Enterprise Value = 89.1b USD (57.8b + Debt 31.7b - CCE 373.5m)
Interest Coverage Ratio = 1.52 (Ebit TTM 1.73b / Interest Expense TTM 1.14b)
EV/FCF = 21.97x (Enterprise Value 89.1b / FCF TTM 4.06b)
FCF Yield = 4.55% (FCF TTM 4.06b / Enterprise Value 89.1b)
FCF Margin = 68.53% (FCF TTM 4.06b / Revenue TTM 5.92b)
Net Margin = 18.94% (Net Income TTM 1.12b / Revenue TTM 5.92b)
Gross Margin = 68.62% ((Revenue TTM 5.92b - Cost of Revenue TTM 1.86b) / Revenue TTM)
Gross Margin QoQ = 11.06% (prev 82.14%)
Tobins Q-Ratio = 1.20 (Enterprise Value 89.1b / Total Assets 74.6b)
Interest Expense / Debt = 3.59% (Interest Expense 1.14b / Debt 31.7b)
Taxrate = 7.55% (26.2m / 347.1m)
NOPAT = 1.60b (EBIT 1.73b * (1 - 7.55%))
Current Ratio = 0.40 (Total Current Assets 1.49b / Total Current Liabilities 3.77b)
Debt / Equity = 0.81 (Debt 31.7b / totalStockholderEquity, last quarter 39.1b)
Debt / EBITDA = 7.41 (Net Debt 31.3b / EBITDA 4.22b)
Debt / FCF = 7.71 (Net Debt 31.3b / FCF TTM 4.06b)
Total Stockholder Equity = 39.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.55% (Net Income 1.12b / Total Assets 74.6b)
RoE = 2.23% (Net Income TTM 1.12b / Total Stockholder Equity 50.2b)
RoCE = 2.23% (EBIT 1.73b / Capital Employed (Equity 50.2b + L.T.Debt 27.3b))
RoIC = 2.17% (NOPAT 1.60b / Invested Capital 73.6b)
WACC = 4.81% (E(57.8b)/V(89.5b) * Re(5.62%) + D(31.7b)/V(89.5b) * Rd(3.59%) * (1-Tc(0.08)))
Discount Rate = 5.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.89 | Cagr: 10.22%
[DCF] Terminal Value 77.97% ; FCFF base≈3.82b ; Y1≈4.38b ; Y5≈6.45b
[DCF] Fair Price = 70.50 (EV 97.0b - Net Debt 31.3b = Equity 65.7b / Shares 932.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -40.12 | EPS CAGR: -4.69% | SUE: -0.54 | # QB: 0
Revenue Correlation: 97.50 | Revenue CAGR: 19.05% | SUE: 1.66 | # QB: 14
EPS current Quarter (2026-06-30): EPS=0.40 | Chg30d=-5.97% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.41 | Chg30d=-7.07% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=1.54 | Chg30d=-7.04% | Revisions=-43% | GrowthEPS=+32.0% | GrowthRev=+5.6%
EPS next Year (2027-12-31): EPS=1.72 | Chg30d=-5.35% | Revisions=-20% | GrowthEPS=+8.8% | GrowthRev=+6.4%
[Analyst] Revisions Ratio: -43%