San Diego, California-based Realty Income Corporation (O) engages in the acquisition and management of freestanding commercial properties that reap rental revenue under long-term net lease agreements. With a market cap of $54.3 billion, Realty Income’s portfolio consists of 15,450 commercial properties leased to over 1,500 clients and spread across 90 industries.
Companies worth $10 billion or more are generally described as "large-cap stocks," Realty Income fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the retail REITs industry. It has properties in all 50 states of the U.S. and various countries in Europe.
Realty Income touched its 52-week high of $63.39 on Sep. 5, and it's now trading 1.6% below that peak. O stock has gained 15% over the three months outpacing the Real Estate Select Sector SPDR Fund’s (XLRE) 14% gains during the same time frame.
Over the longer term, Realty Income has underperformed XLRE. O gained 13.5% over the past 52 weeks and 8.7% in 2024, lagging behind XLRE’s 19.3% gains over the past year and 8.9% returns on a YTD basis.
However, Realty Income stock has consistently traded above its 50-day and 200-day moving averages since mid-July, suggesting its bullish price trend.
Shares of Realty Income rose 2.1% after the release of its better-than-expected Q2 earnings on Aug. 5. It exceeded Wall Street’s topline estimates and reported a remarkable 31.4% annual growth in total revenue, reaching $1.3 billion. Additionally, its adjusted funds from operations (AFFO) available to common stockholders soared by 37.1% to $921.1 million, and its AFFO per share of $1.06 marginally exceeded the consensus estimates.
Realty Income’s competitor, Kimco Realty Corporation (KIM), gained 23.5% over the past year, outpacing Realty Income’s single-digit return during the same time frame. However, in 2024, KIM gained 7.9%, lagging behind O on a YTD basis.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” The mean target price of $64.10 represents a 2.7% potential upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
