NYSE: O · Retail REITs
Realty Income
Realty Income, a San Diego-based REIT founded in 1969 and known as “The Monthly Dividend Company,” buys and owns freestanding commercial properties leased to tenants under long-term net leases, where the tenant generally pays property taxes, insurance and maintenance. At December 31, 2025 it owned 15,511 properties in all 50 U.S. states, the U.K. and eight other European countries; they were 98.9% leased. Retail made up 79.1% of annualized base rent, industrial 15.4% and gaming 3.1%; the largest clients were 7-Eleven (3.3%), Dollar General (3.2%) and Walgreens (3.1%), and the U.K. was 14.3%. 2025 revenue rose 9% to $5,749 million, net income available to common stockholders was $1,059 million and normalized FFO was $4.27 per diluted share. It invested $6.3 billion in 2025. It has raised its dividend 133 times since its 1994 NYSE listing and pays monthly. The January 2024 Spirit Realty merger and the November 2021 VEREIT merger expanded the portfolio.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 17:13 (SEC EDGAR) · Source 10-K filed: February 25, 2026
Built on10-K FY2025 · filed 2026-02-2510-Q (quarter ended 2026-09-30) · filed 2026-11-03Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 28.4%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- —
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- —
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- —
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 3.77x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 51.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.42
Higher than 92% of 372 non-financial companies
Average yearly growth over the years shown
Latest fiscal year (FY2025)
Return on capital above (or below) its estimated cost
Below 0 means more cash than debt
Higher than 92% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; fiscal FY2025
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$58.20close on 2026-11-04
Market cap$54.36B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 51.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 1.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- —
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 7.1%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 5.5%
At FY2025 year-end: 48.2x
Earnings: fiscal FY2025
At FY2025 year-end: 1.3x
Book value at FY2025 year-end
At FY2025 year-end: —
EBITDA for FY2025
At FY2025 year-end: 7.3%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$1.47B → $1.62B (vs. a year earlier)↑ +10.3%$1.47B → $1.62B (vs. a year earlier)
- Diluted EPS$0.35 → $0.43 (vs. a year earlier)↑ +22.9%$0.35 → $0.43 (vs. a year earlier)
- Cash$553M → $369M (vs. previous quarter-end)↓ −33.3%$553M → $369M (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 2, 2026.
Management outlook ↑ Raised
Raised 2026 AFFO per share guidance to $4.45–$4.46. Source sentence
“As a result, we are raising our 2026 AFFO per share guidance to $4.45–$4.46 while reaffirming our $10.0 billion investment volume target, which is supported by a well-funded balance sheet.”
Key changes
AFFO up 3.7% to $1.12 per share. Source sentence
Adjusted Funds from Operations ("AFFO") increased 3.7% to $1.12 per share, compared to the three months ended September 30, 2025
Monthly dividends up 0.7% to $0.813. Source sentence
The amount of monthly dividends paid per share increased 0.7% to $0.813 in the three months ended September 30, 2026 , as compared to $0.807 during the three months ended September 30, 2025 , representing 72.6% of our diluted AFFO per share of $1.12 during the three months ended September 30, 2026.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- REALTY INCOME CORP
- Headquarters
- SAN DIEGO, CA
- Incorporated in
- Maryland
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: O
- Industry
- Retail REITs
- CIK
- 726728
Workforce (as of FY2025 year-end)
Employees
544
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 51–55 days after quarter end (Feb 24, 2026; Feb 24, 2025; Feb 20, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 33–55 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 2, 2026 (+33 days) | Nov 3, 2026 10-Q (+34 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 5, 2026 (+36 days) | Aug 6, 2026 10-Q (+37 days) |
| Q1 FY2026 | Mar 31, 2026 | May 6, 2026 (+36 days) | May 7, 2026 10-Q (+37 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 24, 2026 (+55 days) | Feb 25, 2026 10-K (+56 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 3, 2025 (+34 days) | Nov 4, 2025 10-Q (+35 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 6, 2025 (+37 days) | Aug 7, 2025 10-Q (+38 days) |
| Q1 FY2025 | Mar 31, 2025 | May 5, 2025 (+35 days) | May 6, 2025 10-Q (+36 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 24, 2025 (+55 days) | Feb 25, 2025 10-K (+56 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 4, 2024 (+35 days) | Nov 5, 2024 10-Q (+36 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 5, 2024 (+36 days) | Aug 6, 2024 10-Q (+37 days) |
| Q1 FY2024 | Mar 31, 2024 | May 6, 2024 (+36 days) | May 7, 2024 10-Q (+37 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 20, 2024 (+51 days) | Feb 21, 2024 10-K (+52 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Net lease real estate
Retail properties
14,864 properties leased to grocery, convenience, dollar, home-improvement, restaurant and other retailers (79.1% of annualized base rent).
Net lease real estate
Industrial properties
577 properties (15.4% of annualized base rent).
Net lease real estate
Gaming
Two properties (3.1% of annualized base rent); top-20 clients include Wynn Resorts (1.9%) and MGM (Bellagio) (1.1%).
Net lease real estate
Credit investments
Loans and preferred equity; $1,613M invested in 2025.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
The 10-K gives no market-share figures.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)
07
Recent strategic focusSite analysis
Recent developments.
First half 2026
Revenue $3,096M versus $2,791M in the first half of 2025 (+11%).
Source: Form 10-Q (quarter ended 2026-06-30)
2026 financing
Issued $800M 4.750% notes due 2033 (April), €600M 3.625% notes due 2032 (July), 3.750% convertible notes due 2031 (August) and a new credit agreement (July).
Source: Form 10-K (FY2025)
2025 investments
$6.3 billion invested at an initial weighted average cash yield of 7.3%.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
0.05x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$132M ÷ $2,524M = 0.05x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$366M
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $9M in FY2020 to $132M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$5.75B
As reported in the 10-K
Revenue CAGR (5 years)
+28.4%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($5,749M ÷ $1,647M) ^ (1÷5) − 1 = 28.4%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
—
formulaoperating income ÷ revenue × 100
ROE (FY2025)
2.7%▼caution
6-year average: 2.8%
As reported in the 10-K
P/B (FY2025 end)
1.33x
formulafiscal year-end closing price ÷ book value per share
e.g.$56.37 ÷ $42.23 = 1.33x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
—
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +28.4% a year over 5 years (strong growth)
From $1.65B in FY2020 to $5.75B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Equity ratio is 54.2% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▼
ROE averaged 2.8% over 6 years (latest: 2.7%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Spirit Realty Capital
07 · what it does
Key activities
- Acquire and develop net-lease properties
- Lease and re-lease properties
- Loans, preferred equity and private capital
06 · what it draws on
Key resources
- 544 professionals (Dec 31, 2025)
- Equity (ATM program) and investment-grade unsecured debt
- Sourcing relationships with clients, developers and brokers
02 · why customers buy
Value propositions
- Single-tenant net-lease properties, with operational scale, proprietary data and technology.
04 · how it keeps them
Customer relationships
- Long-term net leases.
03 · how it reaches them
Channels
- Retail, industrial and gaming tenants; sale-leasebacks.
01 · who it serves
Customer segments
- Retail operators (grocery, convenience, dollar stores, home improvement)
- Industrial tenants
- Gaming operators
09 · where money goes
Cost structure
FY2025, share of revenue ($5.75B)
- Selling, general & administrative3.5%
Depreciation & amortization (inside the costs above): $2.52B. Capital spending: $132M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Rental revenue under net leases
- Interest on loans and preferred equity
- Other income
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Buys freestanding single-tenant properties and leases them long term on net terms; rent is the main revenue and is funded with equity, unsecured notes and credit facilities. Also invests in loans, preferred equity, developments and joint ventures.
01 what it draws on
Inputs & resources
- 544 professionals (Dec 31, 2025)
- Equity (ATM program) and investment-grade unsecured debt
- Sourcing relationships with clients, developers and brokers
02 what it does
Activities
- Acquire and develop net-lease properties
- Lease and re-lease properties
- Loans, preferred equity and private capital
03 who it serves
Customers
- Retail operators (grocery, convenience, dollar stores, home improvement)
- Industrial tenants
- Gaming operators
04 how money comes in
How it earns
- Rental revenue under net leases
- Interest on loans and preferred equity
- Other income
How the business makes money
- 15,511 properties, 98.9% leased (Dec 31, 2025).
- Top 20 clients = 35.8% of annualized base rent.
- 133 dividend increases since 1994; monthly dividends.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Realty Income is a REIT; some property values depend on local tax abatements.
Government funding & tax credits
REIT tax status
To keep REIT status (no corporate income tax on distributed income) it must distribute at least 90% of REIT taxable income each year.
Supports and constrainsTouches: How it earnsSource: Form 10-K (FY2025)
Government funding & tax credits
Local tax abatements
Some property values could fall if local tax abatements or incentives expire.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Revenue by segment (2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Net lease real estate
5,749 (100%)
Source: Form 10-K (FY2025) One reportable segment; total revenue $5,749M. By annualized base rent: retail 79.1%, industrial 15.4%, gaming 3.1%, other 2.4%.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Pending or recent acquisition
Spirit Realty Capital
All-stock merger completed January 23, 2024.
Source: Form 10-K (FY2025)
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Retail, industrial and gaming tenants on long-term net leases.
Named by the company
- 7-Eleven — Largest client: 812 properties, 3.3% of annualized base rent.Form 10-K (FY2025)
- Dollar General — 1,797 properties, 3.2%.Form 10-K (FY2025)
- Walgreens — 400 properties, 3.1%.Form 10-K (FY2025)
Suppliers
Capital markets, lenders, developers and property sellers.
Named by the company
No supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K says many competitors own or operate similar freestanding properties but names none.
Competitors named in the 10-K
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
REIT and financial services companies (2026 proxy).
- Alexandria Real Estate Equitiessite ↗
- Equinixsite ↗
- Prologissite ↗
- AvalonBay Communitiessite ↗
- Equity Residentialsite ↗
- Public Storagesite ↗
- BXPsite ↗
- JLL (Jones Lang LaSalle)site ↗
- Simon Property Groupsite ↗
- CBRE Groupsite ↗
- Kennedy-Wilson Holdingssite ↗
- The Hartfordsite ↗
- Crown Castlesite ↗
- MetLifesite ↗
- Ventassite ↗
- Digital Realtysite ↗
- Northern Trustsite ↗
- Welltowersite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Profit over time (operating → net)
Unit: $M
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 1,647 | 2,080 | 3,344 | 4,079 | 5,271 | 5,749 |
| Pretax income | 411 | 392 | 918 | 929 | 934 | 1,155 |
| Net income (attributable) | 395 | 359 | 869 | 872 | 861 | 1,059 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 26.3% | 60.7% | 22.0% | 29.2% | 9.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 24.0% | 17.3% | 26.0% | 21.4% | 16.3% | 18.4% |
| Balance sheet ($M) | ||||||
| Total assets | 20,740 | 43,138 | 49,673 | 57,779 | 68,835 | 72,796 |
| Total equity | 11,018 | 25,129 | 28,843 | 33,107 | 39,052 | 40,124 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 8,817 | 15,443 | 18,111 | 21,520 | 26,227 | 28,795 |
| Equity ratio | 53.0% | 58.1% | 57.8% | 57.0% | 56.4% | 54.2% |
| ROE | 3.6% | 2.0% | 3.2% | 2.8% | 2.4% | 2.7% |
| Cash flow ($M) | ||||||
| Operating CF | 1,116 | 1,322 | 2,564 | 2,959 | 3,573 | 3,995 |
| Investing CF | -2,032 | -6,438 | -8,387 | -9,355 | -3,343 | -5,663 |
| Financing CF | 1,692 | 4,577 | 5,738 | 6,437 | -21 | 1,678 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,107 | 1,303 | 2,468 | 2,890 | 3,452 | 3,863 |
| Cash and equivalents | 824 | 259 | 171 | 233 | 445 | 435 |
| Per share & other | ||||||
| EPS ($) | 1.14 | 0.87 | 1.42 | 1.26 | 0.98 | 1.17 |
| BVPS ($) | 30.41 | 42.37 | 43.49 | 43.78 | 43.57 | 42.23 |
| Dividend per share ($) | 2.79 | 2.83 | 2.97 | 3.05 | 3.13 | 3.22 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 245.1% | 325.6% | 208.9% | 242.1% | 318.9% | 275.0% |
| P/E (x) | 52.8 | 82.3 | 44.7 | 45.6 | 54.5 | 48.2 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 1.98 | 1.69 | 1.46 | 1.31 | 1.23 | 1.33 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Net income | Diluted EPS |
|---|---|---|---|
| 2026-09-30 | $1.62B+10.3% | — | $0.43 |
| 2026-06-30 | $1.55B+9.7% | — | $0.37 |
| 2026-03-31 | $1.55B+12.2% | — | $0.33 |
| 2025-12-31 † | $1.49B+11.0% | $296M+48.3% | — |
| 2025-09-30 | $1.47B | $316M | $0.35 |
| 2025-06-30 | $1.41B | $197M | $0.22 |
| 2025-03-31 | $1.38B | $250M | $0.28 |
| 2024-12-31 † | $1.34B | $200M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
Not enough data (operating income, equity, etc.) to compute ROIC/WACC.
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
1.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.0% − 4.7%
Past FCF growth (FY2020–FY2025)
+28.4%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+28.4%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $3.86B (operating CF − capex); enterprise value $82.72B = market cap $54.36B (latest close, 2026-11-04) + debt $28.79B − cash and short-term investments $435M; r = WACC of 6.0% using this page’s default assumptions (β 0.42, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$82.19B
FCF $3.86B ÷ (6.0% − 1.3%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.0% | 5.0% | 6.0% | 7.0% | 8.0% |
|---|---|---|---|---|---|
| 0% | 1.17x | 0.93x | 0.78x | 0.67x | 0.58x |
| 2% | 2.34x | 1.56x | 1.17x | 0.93x | 0.78x |
| 4% | — | 4.67x | 2.34x | 1.56x | 1.17x |
| 6% | — | — | — | 4.67x | 2.34x |
| 8% | — | — | — | — | — |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 3.46x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -4.1%
A small share of profit rests on accounting estimates.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-25
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,995M ÷ $1,059M = 3.77x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 78.7%
- Directors & officers (shares)
- 0.1%
- Everyone else (est.)
- 21.2%
- Directors & officers (voting power)
- 0.1%
- Institutional-ownership rank
- 322 of 416
- Beta (adjusted)
- 0.42
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 77% of covered companies have more
above 1 = swings more than the market
- 745.1M shares reported by 1,459 13F filers ÷ 946.2M shares outstanding on 2026-07-30. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-25 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-30)
19
Strengths & weaknessesSite analysis
Strengths
1. Scale and diversification
15,511 properties; largest client 3.3% of annualized base rent.
Evidence: Form 10-K (FY2025)
2. High occupancy
98.9% leased at the end of 2025.
Evidence: Form 10-K (FY2025)
3. Long dividend record
133 dividend increases since 1994 and 113 consecutive quarterly increases as of February 2026.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Reliance on external capital
Growth depends on issuing equity and debt; debt rose to about $28.8B at the end of 2025.
Evidence: Form 10-K (FY2025)
2. Retail concentration
Retail is 79.1% of annualized base rent, including dollar stores and drug stores.
Evidence: Form 10-K (FY2025)
3. Low GAAP EPS
Net income per share was $1.17 in 2025 because of large depreciation charges.
Evidence: Form 10-K (FY2025)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
48.2x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
5.71%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
275%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
7.3%
(Operating CF − capex) ÷ market cap
1. Monthly, growing dividend
2025 dividends per share of $3.217.
- What has to hold
- Long record of increases.
- The other side
- Payout is high relative to net income.
Evidence: Form 10-K (FY2025)
2. Normalized FFO growth
Normalized FFO per diluted share $4.27 in 2025 versus $4.12 in 2024.
- What has to hold
- Acquisitions add rent.
- The other side
- Equity issuance dilutes per-share growth.
Evidence: Form 10-K (FY2025)
As a REIT, net income is reduced by depreciation; the company uses FFO and normalized FFO. Debt is the sum of credit facility/commercial paper, term loans, mortgages and notes payable from each balance sheet. Shares jumped in 2021 (VEREIT) and 2024 (Spirit).
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.8x
$435M vs. $517M
Interest coverage (operating income ÷ interest expense)
Not disclosed
The income statement has no operating income line.
Free cash flow ÷ dividends paid
1.3x
$3.86B vs. $2.92B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable every year
Net income positive every year 2020–2025, with a low of $359M (2021).
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Realty Income says it is party only to routine legal actions incidental to its business and expects no material adverse effect.
Company statement:
Based on Form 10-K (FY2025) — Contingencies note, reviewed 2026-10-31. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1FX & interest rates
Interest rates
- Company disclosure (summarized from the 10-K)
- Higher rates raise borrowing costs and can lower property values and investment spreads.
- Company’s stated mitigation
- These investments provide attractive risk‑adjusted return profiles and can serve as a natural hedge to the possible impact of rising interest rates on our cost of capital.
- This site’s assessment
- Impact High / Likelihood High
- 2Customer/supplier concentration
Tenant credit
- Company disclosure (summarized from the 10-K)
- Client financial hardship, including bankruptcy, can stop rent collection and leave properties to re-lease.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Funding & liquidity
Capital markets access
- Company disclosure (summarized from the 10-K)
- Acquisitions are funded with new equity and debt.
- Company’s stated mitigation
- We have incurred significant indebtedness, including borrowings under our $4.0 billion unsecured credit facilities, our term loans and our $3.0 billion commercial paper programs.
- This site’s assessment
- Impact Med / Likelihood High
- 4Competition & technology shift
Competition for acquisitions
- Company disclosure (summarized from the 10-K)
- Competes with other investors for net-lease properties.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- U.K. and European properties expose results to the pound and euro.
- Company’s stated mitigation
- Derivatives Designated as Hedging Instruments - Cash Flow Hedges We enter into foreign currency forward contracts to sell GBP and buy USD to hedge the foreign currency risk on interest payments on intercompany loans denominated in GBP.
- This site’s assessment
- Impact Med / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
• Unexpected, new or other changes in regulatory requirements (including disclosure requirements) within jurisdictions outside the U.S., trade disputes between the U.S. Read more
and other countries, the possibility of changes to some international trade agreements and other government regulatory actions, including the imposition of tariffs, trade barriers or other protectionist actions;
• New investment verticals or transaction structures may be more inherently speculative or carry a higher degree of risk to us than our traditional investment verticals or transaction structures, thereby potentially increasing our overall risk profile and volatility;
Our loans and investments, including in subordinated debt, expose us to risks associated with debt-oriented real estate investments generally.
We invest in debt instruments relating to real estate-related assets, which subject us to additional potential risks, including with respect to fluctuations in the value of the underlying assets, the risks of delinquency or defaults by borrowers, increased regulatory burdens or risks associated with lending, fluctuations in interest rates and credit spreads, loan repayment timing, the limitations on our rights with respect to, or control of, the underlying assets, risk of cost overruns, and increased illiquidity of the investments in light of the limited market for such investments. In addition, certain of our investments in debt instruments are subordinated, which can significantly reduce our ability to control decisions with respect to underlying assets or foreclosure, and, if a borrower were to default, the claims under our debt instrument would only be satisfied after senior debt is…
The success of our business is dependent on the financial stability of the clients occupying our properties. Read more
A default of a client on its lease payments may cause us to lose anticipated revenue from an investment property.
• Global economic (e.g., inflation, fluctuations in interest rates or foreign exchange rates, economic downturns or recessions), political and financial market conditions including as a result of geopolitical tensions and instability;
The bankruptcy or insolvency of a client, borrower or guarantor could result in the termination of the lease agreement, loan agreement, or guarantee, as applicable.
From time to time, we are involved in legal proceedings, lawsuits, claims, regulatory inquiries, investigations, and other disputes that arise in the ordinary course of business. Read more
As our business has evolved and the scope and complexity of our operations and transactions have increased, including through mergers, acquisitions, development opportunities, dispositions, joint ventures, co-investment ventures, private capital transactions, debt investments, funds and other strategic transactions, we may be subject to an increased risk of litigation and other claims. Such matters may involve, among other things, contractual disputes, fiduciary duty claims, compliance with applicable laws and regulations (including the Americans with Disabilities Act of 1990 and building performance standards and related enforcement) and disagreements with partners, investors, clients or other counterparties.…
No longer in the text (4)
Our revolving credit facility grants us the option, subject to obtaining lender commitments and other customary conditions, to expand the borrowing limits thereunder to up to $5.25 billion. Read more
Our term loan agreement (the “2023 term loan agreement”) governs our 2023 term loans, pursuant to which we have borrowed an aggregate of approximately $1.0 billion in multicurrency borrowings. The 2023 term loan agreement also permits us to incur
In connection with the consummation of the closing of the merger (the “Merger”) with Spirit on January 23, 2024, we effectively assumed Spirit’s existing term loans with various lenders. Read more
Specifically, on January 22, 2024, we entered into an amended and restated term loan agreement, pursuant to which we borrowed $800 million in aggregate total borrowings, $300 million of which matures on August 22, 2025 and $500 million of which matures on August 20, 2027 (the “$800 million term loan agreement”), and an amended and restated term loan agreement pursuant to which we borrowed $500 million in aggregate total borrowings which matures on June 16, 2025. The $800 million term loan agreement and the $500 million term loan agreement became effective upon the closing of the Merger on January 23, 2024. Our A3/A- credit ratings provide for a borrowing rate of 80 basis points over the applicable…
Our revolving credit facility, our term loan facilities, and our mortgage loan documents contain provisions that could limit or, in certain cases, prohibit the payment of dividends and other distributions to holders of our common stock and any outstanding preferred stock. The credit agreements governing our revolving credit facility and term loan facilities provide that, if an event of default (as defined in the credit agreements, as applicable) exists, we may not pay any dividends or make other distributions on (except distributions payable in shares of a given class of our stock to the stockholders of that class), or repurchase or redeem, among other things, any shares of our common stock or any outstanding preferred stock, during any period of four consecutive fiscal quarters in an aggregate amount in excess of the greater of (i) the sum of 95% of our adjusted funds from operations…
Compliance with the Americans with Disabilities Act of 1990 and fire, safety, and other regulations may require us to make unanticipated expenditures that could adversely impact our results of operations.
2 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 25, 2026 ↗ with the 10-K filed Feb 25, 2025 ↗.
25
What to watch going forwardSite analysis
- Investment volume and initial cash yields.
- Occupancy and tenant credit (drug and dollar stores).
- Cost of capital: notes and convertible notes issued in 2026.
- Growth of the private capital business.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 17:13 (SEC EDGAR) · Source 10-K filed: February 25, 2026
Built on10-K FY2025 · filed 2026-02-25Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Realty Income’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.