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Realty Income Corporation
🇺🇸 O · NYSE/NASDAQ · US7561091049
Real Estate
USD 62.57 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
43.6
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: 62.57 ÷ 1.44 = 43.6
TTM period through: 2026-06-30
Forward P/E (estimated): 37.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 45.8
Net Debt/EBITDA (TTM)
0.5x
Latest quarter: 1.6x
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: 2026-06-30
Latest quarter (2026-06-30): 1.6x
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).
ROE
3.2%
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
17.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
5.40%
TTM: 5.14%
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.
Forward Yield (estimated): 5.40%
Trailing Yield (TTM, last 12 months): 5.14%
Payout Ratio (Fwd)
225.4%
TTM: 226.9%
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 (Fwd): 225.4%
Payout (TTM): 226.9%
Cash Flow Payout (TTM): 71.9%
FCF Coverage (TTM): 0.73x
Growth Streak
1 yrs
Consec. increases
Div. Growth (5Y)
4.5%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Monthly | — | 30 Jun 2027 | — | USD | 0.271 |
| Forecast* | Monthly | — | 30 Apr 2027 | — | USD | 0.271 |
| Forecast* | Monthly | — | 27 Feb 2027 | — | USD | 0.27 |
| Forecast* | Monthly | — | 31 Dec 2026 | — | USD | 0.27 |
| Forecast* | Monthly | — | 31 Oct 2026 | — | USD | 0.27 |
| Paid | Monthly | 07 Jul 2026 | 31 Jul 2026 | 14 Aug 2026 | USD | 0.271 |
| Paid | Monthly | 09 Jun 2026 | 30 Jun 2026 | 15 Jul 2026 | USD | 0.271 |
| Paid | Monthly | 14 May 2026 | 29 May 2026 | 15 Jun 2026 | USD | 0.271 |
| Paid | Monthly | 14 Apr 2026 | 30 Apr 2026 | 15 May 2026 | USD | 0.271 |
| Paid | Monthly | 11 Mar 2026 | 31 Mar 2026 | 15 Apr 2026 | USD | 0.271 |
| Paid | Monthly | 17 Feb 2026 | 27 Feb 2026 | 13 Mar 2026 | USD | 0.27 |
| Paid | Monthly | 13 Jan 2026 | 30 Jan 2026 | 13 Feb 2026 | USD | 0.27 |
| Paid | Monthly | 09 Dec 2025 | 31 Dec 2025 | 15 Jan 2026 | USD | 0.27 |
| Paid | Monthly | 07 Nov 2025 | 28 Nov 2025 | 15 Dec 2025 | USD | 0.27 |
| Paid | Monthly | 14 Oct 2025 | 31 Oct 2025 | 14 Nov 2025 | USD | 0.27 |
| Paid | Monthly | 09 Sep 2025 | 01 Oct 2025 | 15 Oct 2025 | USD | 0.27 |
| Paid | Monthly | 14 Aug 2025 | 02 Sep 2025 | 15 Sep 2025 | USD | 0.269 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Realty Income is a premier net-lease retail REIT offering a highly secure 5.17% forward yield, supported by an exceptionally conservative 48.7% AFFO payout ratio. While the REIT model inherently necessitates ongoing equity issuance to fund expansion, the company's low cost of capital and massive scale provide a formidable competitive advantage. Worth considering for new positions as shifting interest rate expectations enhance the appeal of this resilient dividend compounder.
Sector Context
Real Estate (REIT - Retail). REITs are legally required to distribute at least 90% of taxable income to shareholders, structurally limiting organic capital retention and requiring continuous debt and equity issuance for growth. Realty Income focuses on single-tenant, triple-net lease commercial properties where the tenant handles taxes, insurance, and maintenance.
Temporary Opportunity Identified
Broader real estate sector valuations have been pressured by a "higher for longer" rate environment and recent softness in US retail sales data. However, diminishing Fed rate hike expectations create a favorable macro setup for high-quality, resilient REITs.
📊 Strategy Analysis
- • Highly attractive valuation with a P/FFO of 14.37x and an exceptional P/AFFO of 9.54x, providing an excellent entry point for a premium S&P 500 REIT.
- • Outstanding dividend safety with a 48.7% AFFO payout ratio, fully supporting the 5.17% forward yield despite the GAAP P/E and payout ratio being distorted by non-cash depreciation.
- • Significant structural incumbency moat driven by its elite credit rating and scale, allowing it to execute large-scale accretive acquisitions (e.g., $2.6B in Q2 2026) while leveraged competitors are frozen out by regional bank tightening.
- • Recently expanded liquidity profile, successfully increasing credit facilities to $5.5 billion and securing €600 million in lower-cost European unsecured notes.
⚠ What to Watch
- • Structural reliance on continuous equity issuance (reflected in the -6.51% Net Buyback Yield) to fund growth, an inherent trait due to the 90% REIT distribution mandate.
- • Net Debt/EBITDA historically around 9.1x introduces refinancing and ongoing interest expense considerations in an unpredictable rate environment.
- • Tightening municipal decarbonization and ESG building mandates could introduce future structural capital expenditure liabilities, even within a traditional triple-net lease structure.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.