Start here if you're new
what it is
It buys commercial buildings, rents them to single tenants, and pays you from the rent stream.
how it gets paid
Last year Realty Income made $5.7B in revenue. Other tenants was the main engine at $4.95B, or 87% of sales.
why it's growing
Revenue grew 9.1% last year. The 20.0% EPS miss matters most because expensive defensive stocks usually get punished when the earnings cushion disappears.
what just happened
Latest results showed $0.32 EPS versus a $0.40 estimate, a 20.0% miss.
At a glance
A balance sheet — strong enough to weather a downturn
75/100 earnings predictability — reasonably predictable
46.5x trailing p/e — you're paying up for this one
5.8% dividend yield — cash in your pocket every quarter
2.5% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
It buys commercial buildings, rents them to single tenants, and pays you from the rent stream.
Scale is the moat. Realty Income owned 15,621 properties with 339.4 million square feet as of 12/31/24, across all 50 states, Puerto Rico, and seven European countries. Tenant concentration is low enough to matter: the top five tenants are only 15.2% of annualized rent, so one wobble does not wreck your whole paycheck.
How they make money
$5.7B
annual revenue · their business grew +9.1% last year
7-Eleven rent
$0.20B
Dollar General rent
$0.19B
Walgreens rent
$0.19B
Dollar Tree/Family Dollar rent
$0.17B
Other tenants
$4.95B
The products that matter
leasing single-tenant commercial real estate
Net Lease Properties
$5.7B revenue
it's the entire business, generating $5.7B in rental income last year from a portfolio of more than 15,000 properties. That scale is the asset. The stock question is what investors will pay for it when rates move.
100% of revenue
Key numbers
$5.7B
annual revenue
That is the rent machine today, and 9.1% growth means Realty Income added roughly $0.47B of revenue in a year.
5.8%
dividend yield
This is your cash return before any stock move, which is the main reason investors tolerate slow growth.
46.5x
trailing p/e
You are paying a growth-stock multiple for a REIT with 3% AFFO growth expected in 2026.
15,621
properties owned
That scale makes Realty Income hard to replicate and helps soften the blow from any one tenant problem.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 1 — safer than 95% of stocks
- price stability 100 / 100
- net profit margin 28.3% — keeps 28 cents of every dollar in revenue
- return on equity 4% — $0.04 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in O 3 years ago → it's now worth $10,590.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Latest results showed $0.32 EPS versus a $0.40 estimate, a 20.0% miss.
The odd part is revenue still came in at $4.3B, up 190% vs. prior year, while full-year revenue was $5.7B, up 9.1%. Big revenue, soft EPS, and a defensive stock trading at a premium is a bad combo.
$4.3B
revenue
$0.32
eps
67.0%
operating margin
the number that mattered
The 20.0% EPS miss matters most because expensive defensive stocks usually get punished when the earnings cushion disappears.
-
that partially reflected an 8.4% rise in revenues (consisting predominantly of the rental category).
-
but these results were weighed down, to some extent, by a 7.0% increase in total expenses (which include such items as depreciation & amortization, interest, and general & administrative costs).
-
so, we believe that the company's full-year affo per share finished at about $4.27, 2% above 2024's $4.19 amount.
-
looking at 2026, affo stands to advance 3%, to $4.40 a share, if economic trends cooperate.
-
finances are in solid shape.
source: company earnings report, 2026
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What could go wrong
the #1 risk is interest-rate sensitivity in a 5.8% yield REIT.
med
interest-rate sensitivity
This stock competes with fixed income for investor attention. When yields rise elsewhere, a 5.8% dividend can look less special and property values usually get marked more conservatively.
the pressure point is valuation. Higher rates can hurt both the multiple investors pay and the appeal of the dividend at the same time.
med
tenant and occupancy stress
More than 15,000 properties spread risk, but they do not eliminate it. If tenants struggle or locations go dark, rent collection slows and the market stops treating the portfolio like a bond substitute.
this is a rent-stream business. Any disruption flows directly into the story investors are actually paying for.
med
growth slows back toward utility speed
34.9% revenue growth is strong for a landlord. If that pace fades while the stock still trades at 46.5x trailing earnings, the market may decide it wants yield without paying a premium for it.
a slower growth profile would leave you owning a very stable business with less reason for the share price to rerate higher.
Higher rates pressure what investors will pay for $5.7B of rent and how attractive a 5.8% yield looks relative to safer alternatives.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth after the 34.9% jump
That growth rate is the unusual part of this story. If it holds up on a $5.7B revenue base, the stock has more than yield to lean on.
trend
short-term outlook in the bottom 5%
Momentum is weak despite the safety profile. If that ranking improves, the market may finally start paying for stability again.
risk
the yield versus rates tradeoff
At 5.8%, the dividend is the headline feature. The market will keep comparing it against whatever fixed income is offering next.
calendar
whether Q4's $1.5B revenue becomes the new floor
For a rent collector, consistency is the plot. The next few quarters need to look steady enough to support the current income narrative.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 is the lowest rating. in human-speak, analysts expect this to trail most stocks near term.
risk profile
safest 5%
stability score 1 means lower downside volatility than almost the entire market. You own safety here.
chart momentum
average
technical score 3 says the chart is not broken, but it is not leading either.
earnings predictability
75 / 100
management is reasonably consistent. For an income stock, fewer surprises is part of the product.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 767 buyers vs. 439 sellers in 3q2025. total institutional holdings: 0.7B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$51
$78
$58
current price
$65
target midpoint · +12% from current · 3-5yr high: $115 (+100% · 22% ann'l return)
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