Realty Income O
Realty Income is a REIT that owns and manages a diversified portfolio of commercial properties (mainly retail) leased long-term to tenants with high credit quality, generating stable and growing rental income. Realty Income is a high-quality REIT with a 92.68% gross margin and 69.2% earnings growth, but its high leverage (Net Debt/EBITDA of 5.74x) and 236.42% payout make it vulnerable to rising interest rates (10-year Treasury at 5.17%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Realty Income is a REIT that owns and manages a diversified portfolio of commercial properties (mainly retail) leased long-term to tenants with high credit quality, generating stable and growing rental income. Realty Income is a high-quality REIT with a 92.68% gross margin and 69.2% earnings growth, but its high leverage (Net Debt/EBITDA of 5.74x) and 236.42% payout make it vulnerable to rising interest rates (10-year Treasury at 5.17%).
Score by category
| Category | Score |
|---|---|
| Financial health | 6.1 |
| Quality / Moat | 4.3 |
| Valuation | 5.0 |
| Growth | 7.8 |
| Dividend | 3.1 |
| Momentum | 5.1 |
| Risk & Context | 7.2 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year Treasury yields (5.17%) is a material risk for a long-duration REIT like Realty Income, as it increases its financing costs and reduces the present value of future cash flows. However, the company has a mostly fixed-rate debt profile and a history of interest rate hedging, which partially mitigates the impact.
News considered in the analysis
- Realty Income Sells a 49% European Stake to KKR. Here’s What It Means for the Dividend — La venta de una participación del 49% en su cartera europea a KKR por efectivo es un movimiento de rotación de capital que podría reducir el apalancamiento (Deuda Neta/EBITDA de 5.74x) y financiar adquisiciones, aunque el impacto en el dividendo es incierto a corto plazo.
- How to Build $11,300 a Month in Dividend Income From Three Income Buckets — Listículo genérico sobre ingresos por dividendos sin información específica sobre Realty Income.
- 2 Top Dividend Stocks to Buy and Hold Forever — Artículo de opinión genérico sin datos concretos que afecten a la valoración de la empresa.
- 10-Year Treasury Yields Are Back Over 5% After the Fed Raised Rates. 3 Reasons Why This S&P 500 Dividend Stock Is a Better Buy for Long-Term Passive Income Investors — El repunte de los rendimientos del Tesoro a 10 años (5.17%) presiona la valoración de los REITs, ya que aumenta la tasa de descuento de sus flujos de caja. Sin embargo, el mercado ya ha descontado parcialmente este riesgo en el precio de la acción (cotiza en el percentil 4% de su rango de 52 semanas).
- Want Income Now? 3 Stocks Paying 5% or More and the Risk That Comes With Each — Artículo genérico sobre acciones con dividendo, sin información específica sobre Realty Income.
Verdict: Hold, with a negative short-term bias due to interest rate risk and leverage.
Main risk: The main risk is financial leverage (Net Debt/EBITDA of 5.74x) in a rising interest rate environment, which increases financing costs and pressures real estate asset valuations.
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