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ealty Income (ticker O) has long been a benchmark for dividend reliability in the REIT space. Since its 1994 IPO, the company has raised its monthly dividend 131 times, including 111 straight quarters—over thirty years of continuous growth. With shares trading roughly 9 % below their 52‑week high, the current yield sits near 5.5 %, offering an attractive entry point for investors seeking a steady income stream.
**2025 Performance Snapshot**
In the first half of 2025, Realty Income reported adjusted FFO of $2.11 per share, driven by a solid legacy portfolio. Same‑store rent growth averaged 1.2 % (above the 1 % guidance), and occupancy remained at 98.6 % (meeting the forecast of over 98 %). The REIT also secured $2.5 B in new acquisitions, surpassing its initial target of $4 B for the year. This robust performance enabled a four‑fold dividend increase this year, totaling a 3.7 % rise over the past 12 months.
Encouraged by the strong start, the company lifted its full‑year outlook. It now expects investment volume of about $5 B and adjusted FFO of $4.24‑$4.28 per share, slightly above the original $4.22‑$4.28 range.
**Valuation and Market Position**
The stock’s 9 % decline from its peak places it below $59 per share, valuing it at less than 14× adjusted FFO. This is attractive compared to the S&P 500 REIT average of 18× FFO, indicating a potentially undervalued position.
**Portfolio and Growth Opportunities**
Realty Income has grown to the sixth‑largest global REIT, owning over 15,600 properties across nine countries with a market value of roughly $61 B. The portfolio mix is 79.9 % retail, 14.6 % industrial, 3.1 % gaming, and 2.4 % other assets.
The company has expanded into new verticals and geographies. Its entry into the UK and other European markets opened an $8.5 T opportunity; Europe accounted for 76 % of Q2 investment volume. In the U.S., diversification into casino properties and data centers added an estimated $900 B to the total addressable market, bringing the combined opportunity to about $14 T when combined with core retail and industrial platforms.
**Financial Strength and Capital Strategy**
Realty Income boasts one of the strongest balance sheets in the sector, providing ample flexibility for further acquisitions. The recent launch of a private capital fund in the U.S. enhances access to acquisition capital and generates management fee income, further boosting returns.
**Investment Thesis**
With a proven dividend track record, a solid current valuation, and a vast, diversified growth pipeline, Realty Income is positioned to continue expanding its portfolio and dividend payouts for decades. The recent price dip offers a compelling buying opportunity for investors looking to add a reliable, high‑yield real estate stock to their long‑term holdings.
