Realty Income 's (O -0.25%) mission has been to invest in ways that enable it to pay a dependable dividend that grows over time. The real estate investment trust (REIT) has certainly delivered on that aim over the years.
Realty Income Corporation investors outperformed the market recently, thanks to a dropping 10Y bond yield. While market conditions remain uncertain, Realty Income's consistent performance and dividend sustainability are crucial anchors. With market volatility poking holes in the thesis of higher valued tech and growth stocks, Realty Income's relative stability has become more appealing.
Realty Income, a popular REIT with a 30-year dividend growth history, faces disappointment regarding 2025 guidance. Despite solid 2024 results with a 4.8% AFFO per share growth, 2025 guidance is disappointing with only 1.4% expected growth. High interest rates, upcoming debt refinancing, and tight investment spreads are constraining Realty Income's growth.
If you're looking for a way to boost your income stream while barely lifting a finger, high-yield dividend stocks are a great way to make it happen. While many investors are poring over every development in the artificial intelligence (AI) space, plenty of quality businesses that distribute steadily growing profits are being ignored.
Realty Income Corporation (O) Q4 2024 Earnings Call Transcript
Avoiding Nightmares With Realty Income
O's fourth-quarter 2024 results reflect lower-than-anticipated AFFO per share. However, revenues rise year over year.
Shares of the real estate investment trust (REIT) Realty Income (O -2.77%) slipped about 2.8% as of 11:44 a.m. ET after the company reported its fourth-quarter earnings results.
Realty Income Corporation O shares dipped on Tuesday. On Monday, the company reported fourth-quarter adjusted funds from operations (AFFO) per share increase of 4.0% year over year to $1.05, missing the consensus of $1.07.
Realty Income, a leading REIT, shows consistent cash flow and growth, making it an attractive investment despite recent dips and lower-than-expected 2025 guidance. The company's revenue surged 24.5% year-over-year, driven by significant acquisitions, including Spirit Realty Capital, and increased property holdings and occupancy rates. Despite a drop in net profits, key profitability metrics like FFO and operating cash flow improved, indicating strong underlying financial health.
Although the revenue and EPS for Realty Income Corp. (O) give a sense of how its business performed in the quarter ended December 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Realty Income Corp. (O) came out with quarterly funds from operations (FFO) of $1.05 per share, missing the Zacks Consensus Estimate of $1.06 per share. This compares to FFO of $1.01 per share a year ago.