Realty Income, a real estate investment trust that primarily leases freestanding, single tenant, triple-net-leased retail properties, is now a $51 billion (by market cap) real estate titan. O has increased its dividend for 32 consecutive years, with a 10-year dividend growth rate of 3.6%. Realty Income advanced its revenue from $1 billion in FY 2015 to $5.3 billion in FY 2024, a compound annual growth rate of 20.4%.
Recently, Zacks.com users have been paying close attention to Realty Income Corp. (O). This makes it worthwhile to examine what the stock has in store.
O's first-quarter 2025 results reflect a year-over-year rise in revenues. However, higher interest expenses remain a concern.
Over the past few months, the Trump Administration's unpredictable tariffs, the intensifying trade wars, and fears of a global recession drove many investors away from higher-risk stocks. Elevated interest rates also kept them locked into certificates of deposits (CDs), T-bills, and bonds.
Realty Income Corporation (NYSE:O ) Q1 2025 Earnings Conference Call May 5, 2025 5:00 PM ET Company Participants Kelsey Mueller - Vice President, Investor Relations Sumit Roy - President and Chief Executive Officer Jonathan Pong - Chief Financial Officer and Treasurer Conference Call Participants Smedes Rose - Citi Brad Heffern - RBC Capital Markets Ryan Caviola - Green Street Advisors Haendel St. Juste - Mizuho Ronald Kamdem - Morgan Stanley Greg McGinniss - Scotiabank Michael Goldsmith - UBS Richard Hightower - Barclays Jana Galan - Bank of America Jay Kornreich - Wedbush Wes Golladay - Baird Linda Tsai - Jefferies Upal Rana - KeyBanc Capital Markets Anthony Paolone - JPMorgan Omotayo Okusanya - Deutsche Bank Operator Good day and welcome to the Realty Income First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode.
While the top- and bottom-line numbers for Realty Income Corp. (O) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Realty Income Corp. (O) came out with quarterly funds from operations (FFO) of $1.06 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $1.03 per share a year ago.
The S&P 500 index (^GSPC 1.47%) has a tiny dividend of 1.3% or so. It would be very difficult to live off the income collected from an S&P 500 index fund.
Healthy demand for O's properties and strategic expansionary efforts are likely to have benefited Q1 earnings, though elevated expenses might be a dampener.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Realty Income Corp. (O), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended March 2025.
Since my last writing, Realty Income Corporation's latest dividend declaration and FQ1 earnings revisions have made it a strong candidate as an equity bond. The cash dividend yield is 5.7%, but the AFFO yield is more than 7%. Dividend yields underestimate O's attractiveness as an equity bond for long-term investors, and AFFO yield is a better metric.
With a broad tenant portfolio, O provides growth and dividends. However, could tariffs, inflation and elevated rates impact its long-term performance?