Based in San Diego, California, Realty Income Corporation (O) is a prominent real estate investment trust (REIT) specializing in single-tenant, retail, and commercial properties. Known for its dependable monthly dividend payments, Realty Income boasts a market cap of $50.12 billion. The company is known for its strategic acquisition approach, robust portfolio, and long-term lease agreements with high-quality tenants. Realty Income is set to release its fiscal Q2 earnings results after the market closes on Monday, Aug. 5.
Ahead of the event, analysts expect O to report funds from operations (FFO) of $1.05 per share, up 5% from $1 in the year-ago quarter. In the last four quarters, the company has surpassed or matched Wall Street’s bottom-line estimates in three and missed on another occasion.
Realty Income's adjusted FFO of $1.03 per share for the last quarter matched the consensus estimate. The company's Q1 performance was primarily driven by top-line growth from expansion efforts and a healthy global pipeline.
For fiscal 2024, analysts expect O to report an FFO of $4.20 per share, up 5% from $4 in fiscal 2023.
O stock is up marginally on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.7% gains and the iShares Cohen & Steers REIT ETF’s (ICF) 3.5% returns over the same time frame.
Realty Income reported a 33.5% surge in Q1 revenue to $1.26 billion, boosted by its acquisition of Spirit Realty in January. Despite this positive financial report and the company's 5.6% dividend yield, investor interest remained low, causing the stock to continue its downtrend following the earnings release.
The consensus opinion on O stock is optimistic, with an overall “Moderate Buy” rating. Out of 19 analysts covering the stock, seven advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 11 recommend a "Hold.” O's average analyst price target is $60.77, indicating a potential upside of 5.6% from the current levels.
On the date of publication, Rashmi Kumari 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.
