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Is Realty Income (O) a Good Investment?
Triple-net leases, in which tenants are responsible for all maintenance and other expenditures, are Realty Income’s (NYSE:O) specialty, making the company an appealing real estate investment trust (REIT). It manages over 12,000 stores and restaurants and is strongest in defensive industries like healthcare and retail. The company has built confidence and credibility via its dominance in profitable markets and its regular dividend payments dating back to the early 2000s.
The dividend yield is above 5%, and the firm has shown to have substantial growth potential. O stock also has a lot of room to grow, as its average price objective is higher than the current price by more than 15%. Blue-chip stock appears as an attractive alternative for long-term investors seeking stability and dynamic profitability, thanks to tenants like Walgreens (NASDAQ:WBA) and 7-Eleven (OCTMKTS:SVNDY) and a track record of exceeding market expectations over the previous decade.
In the second quarter, Realty Income reported FFO per share of $1.02 and sales of over $1 billion, both of which were above the estimate on Wall Street. In addition, it revised downward its FFO target range and improved its acquisition outlook. CEO Sumit Roy highlighted the $3.1 billion in investment volume closed during the quarter and spoke of the active worldwide pipeline of investment prospects.
