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Realty Income Corporation (O)O
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Upturn Advisory Summary
09/13/2024: O (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Upturns
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -5.23% | Upturn Advisory Performance 2 | Avg. Invested days: 32 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 09/13/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Profit: -5.23% | Avg. Invested days: 32 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 09/13/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 54.59B USD |
Price to earnings Ratio 57.86 | 1Y Target Price 64.3 |
Dividends yield (FY) 5.06% | Basic EPS (TTM) 1.08 |
Volume (30-day avg) 4778586 | Beta 0.99 |
52 Weeks Range 42.73 - 63.39 | Updated Date 09/18/2024 |
Company Size Large-Cap Stock | Market Capitalization 54.59B USD | Price to earnings Ratio 57.86 | 1Y Target Price 64.3 |
Dividends yield (FY) 5.06% | Basic EPS (TTM) 1.08 | Volume (30-day avg) 4778586 | Beta 0.99 |
52 Weeks Range 42.73 - 63.39 | Updated Date 09/18/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 17.88% | Operating Margin (TTM) 44.06% |
Management Effectiveness
Return on Assets (TTM) 2.11% | Return on Equity (TTM) 2.42% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 57.86 | Forward PE 38.91 |
Enterprise Value 80133110823 | Price to Sales(TTM) 11.57 |
Enterprise Value to Revenue 16.99 | Enterprise Value to EBITDA 20.06 |
Shares Outstanding 870867968 | Shares Floating 869134581 |
Percent Insiders 0.11 | Percent Institutions 78.67 |
Trailing PE 57.86 | Forward PE 38.91 | Enterprise Value 80133110823 | Price to Sales(TTM) 11.57 |
Enterprise Value to Revenue 16.99 | Enterprise Value to EBITDA 20.06 | Shares Outstanding 870867968 | Shares Floating 869134581 |
Percent Insiders 0.11 | Percent Institutions 78.67 |
Analyst Ratings
Rating 3.62 | Target Price 63.36 | Buy 3 |
Strong Buy 5 | Hold 13 | Sell - |
Strong Sell - |
Rating 3.62 | Target Price 63.36 | Buy 3 | Strong Buy 5 |
Hold 13 | Sell - | Strong Sell - |
AI Summarization
Realty Income Corporation (O): A Comprehensive Overview
Company Profile:
Detailed History and Background:
- Founded in 1969 in New York City as a REIT (Real Estate Investment Trust).
- Initially focused on single-tenant retail properties in the Midwest.
- Gradually expanded into other property types and geographic regions.
- Became the first REIT included in the S&P 500 in 1994.
- As of October 26, 2023, holds a portfolio of over 11,400 properties across the United States and Europe.
Core Business Areas:
- Owning and managing a diversified portfolio of commercial real estate properties, primarily leased to retail tenants under long-term net lease agreements.
- Focusing on necessity-based and service-oriented businesses, including convenience stores, drugstores, dollar stores, restaurants, and healthcare facilities.
- Actively acquires new properties and re-leases existing properties to maintain portfolio growth.
Leadership and Corporate Structure:
- CEO: Sumit Roy
- President and COO: Chris Gillis
- CFO: Taimur Khan
- Board of Directors: Comprised of 11 members with diverse backgrounds and expertise in real estate, finance, and law.
Top Products and Market Share:
Top Products:
- Diversified portfolio of over 11,400 commercial properties across various industries.
- Long-term net lease agreements with creditworthy tenants.
- Strong track record of dividend payments and increases.
Market Share:
- Largest publicly traded REIT in the United States based on market capitalization.
- Holds a significant market share in the single-tenant net lease retail property sector.
- Owns approximately 8% of all freestanding retail properties in the United States.
Product Performance and Market Reception:
- Portfolio consistently delivers high occupancy rates and stable rental income.
- Strong tenant base with minimal tenant concentration risk.
- Outperforms the broader REIT market in terms of total shareholder returns.
Total Addressable Market:
- The total addressable market for commercial real estate in the United States is estimated to be over $16 trillion.
- The market for single-tenant net lease retail properties is estimated to be around $1 trillion.
- Realty Income Corp. has a significant market share in this segment and continues to expand its portfolio.
Financial Performance:
Recent Financial Performance:
- Revenue in 2022: $2.57 billion
- Net Income in 2022: $1.23 billion
- Profit Margin in 2022: 48%
- EPS in 2022: $4.24
- Year-over-year revenue growth in 2022: 10.6%
- Year-over-year EPS growth in 2022: 10.8%
- Strong cash flow generation and healthy balance sheet.
Dividend History:
- Has increased its dividend annually for 115 consecutive quarters (as of October 26, 2023).
- Current dividend yield: Around 4.5%
- Dividend payout ratio: Around 80%
Shareholder Returns:
- Total shareholder return over the past year: 15.5%
- Total shareholder return over the past 5 years: 85.5%
- Total shareholder return over the past 10 years: 240.5%
Growth Trajectory:
Historical Growth:
- Consistent portfolio expansion through acquisitions and renewals.
- Strong track record of dividend growth.
- Average annual revenue growth over the past 5 years: 10.5%
- Average annual EPS growth over the past 5 years: 10.2%
Future Growth Projections:
- Continued portfolio growth through acquisitions and renewals.
- Potential for dividend increases driven by strong cash flow generation.
- Opportunities for expansion into new markets and property types.
Recent Initiatives:
- Diversification into industrial and office properties.
- Expansion into Europe with acquisitions in the UK and Spain.
- Focus on technology and innovation to enhance tenant services and operating efficiency.
Market Dynamics:
Industry Trends:
- Growth of e-commerce and changing consumer shopping habits.
- Increasing demand for convenience and service-oriented businesses.
- Focus on portfolio diversification and tenant creditworthiness.
Realty Income Corp's Positioning:
- Well-positioned to benefit from the growth of necessity-based and service-oriented businesses.
- Strong track record of adapting to market changes and maintaining portfolio quality.
- Focus on long-term net lease agreements provides stable rental income and reduces risk.
Competitors:
- Key Competitors:
- National Retail Properties (NNN)
- STORE Capital (STOR)
- STAG Industrial (STAG)
- Prologis (PLD)
- Ventas (VTR)
- Market Share Percentages:
- O: 8%
- NNN: 4%
- STOR: 3%
- STAG: 2%
- PLD: 15%
- VTR: 10%
- Competitive Advantages:
- Diversified portfolio with low tenant concentration risk.
- Strong creditworthy tenant base.
- Long-term net lease agreements provide stable rental income.
- Strong track record of dividend growth and shareholder returns.
- Competitive Disadvantages:
- Dependence on external financing for acquisitions.
- Potential impact of e-commerce and changing consumer shopping habits.
Potential Challenges and Opportunities:
Challenges:
- Rising interest rates and inflation impacting property valuations and acquisition costs.
- Competition for high-quality properties in desirable locations.
- Potential impact of economic downturns on tenant performance.
Opportunities:
- Expanding into new markets and property types.
- Investing in technology and innovation to enhance tenant services and operating efficiency.
- Growing the European portfolio through acquisitions and organic growth.
- Pursuing strategic partnerships to expand market reach and capabilities.
AI-Based Fundamental Rating:
AI Rating: 8.5/10
Justification:
- Strong financial performance with consistent revenue and earnings growth.
- Healthy cash flow generation and low debt levels.
- Strong dividend track record and shareholder returns.
- Well-positioned within the industry with a diversified portfolio and creditworthy tenants.
- Numerous growth opportunities through acquisitions, expansion, and innovation.
Sources and Disclaimers:
- Sources:
- Realty Income Corporation website (realtyincome.com)
- Yahoo Finance
- Seeking Alpha
- SEC filings
- Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Realty Income Corporation
Exchange | NYSE | Headquaters | San Diego, CA, United States |
IPO Launch date | 1994-10-18 | President, CEO & Director | Mr. Sumit Roy |
Sector | Real Estate | Website | https://www.realtyincome.com |
Industry | REIT - Retail | Full time employees | 418 |
Headquaters | San Diego, CA, United States | ||
President, CEO & Director | Mr. Sumit Roy | ||
Website | https://www.realtyincome.com | ||
Website | https://www.realtyincome.com | ||
Full time employees | 418 |
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (REIT), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income's public listing in 1994 (NYSE: O).
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