Realty Income Corporation
🇺🇸 O · NYSE/NASDAQ · US7561091049
Real Estate
USD 61.12 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
52.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 61.12 ÷ 1.17 = 52.2
TTM period through: 2026-03-31
Forward P/E (estimated): 38.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 50.8
Yield (Fwd)
5.30%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.26%
Div. Growth (5Y CAGR)
3.0%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
24.2x
Latest quarter: 24.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 24.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
276.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 275.9%
Cash Flow Payout (TTM): 73.1%
FCF Coverage (TTM): 1.32x
ROE
2.8%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
17.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Realty Income is a premier global net-lease REIT with a highly diversified commercial portfolio and an unparalleled track record of reliable monthly dividends. The current 5.26% yield is securely backed by a 1.32x FCF coverage ratio, compensating for the high GAAP payout ratios typical of the sector. Worth considering for new positions at current levels, offering an attractive combination of defensive real estate assets and resilient income amidst temporary interest rate headwinds.
Sector Context
Realty Income operates as a real estate investment trust (REIT) specializing in freestanding, single-tenant commercial properties under long-term, net lease agreements. In the REIT sector, traditional GAAP P/E and net income payout ratios are heavily distorted by non-cash real estate depreciation, making Cash Flow, FFO, and AFFO the mandatory primary metrics for evaluating dividend sustainability. By law, REITs must distribute at least 90% of their taxable income to shareholders, resulting in naturally high payout ratios.
Temporary Opportunity Identified
High interest rates and persistent inflation fears have broadly depressed REIT valuations, creating a disconnect between the company's strong underlying cash generation and its current market price.
📊 Strategy Analysis
- • Attractive 5.26% dividend yield is solidly backed by operating cash flows, demonstrated by a 73.1% cash flow payout ratio and 1.32x free cash flow coverage.
- • Unparalleled dividend consistency as 'The Monthly Dividend Company', having recently declared its 671st consecutive monthly payout.
- • Strong core fundamentals with consistent long-term growth, including a 17.9% 10-year revenue CAGR and 100% positive earnings quarters over the last two years.
⚠ What to Watch
- • Elevated debt metrics (Net Debt/EBITDA) present ongoing refinancing headwinds in a prolonged 'higher-for-longer' interest rate environment.
- • Macroeconomic softness and persistent inflation could pressure underlying retail tenant health, though heavily mitigated by triple-net lease structures.
- • Traditional GAAP metrics like P/E (52.2x) and Forward Payout Ratio (276%) appear heavily distorted due to non-cash real estate depreciation, requiring strict reliance on cash flow metrics.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.