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ealty Income (O) and Prologis (PLD) are two of the most prominent REITs, yet their strategies diverge sharply. Realty Income, dubbed the “Monthly Dividend Company,” specializes in net‑lease retail and industrial assets that generate predictable cash flow. Its portfolio spans more than 15,600 properties in 91 sectors, with roughly 90 % of tenants in essential services such as grocery, convenience, and healthcare, shielding the REIT from economic swings and e‑commerce disruption.

    In Q2 2025, Realty Income posted a 98.6 % occupancy rate and a 103.4 % rent‑recapture on renewals, underscoring strong demand. The company added $1.2 billion in acquisitions—primarily in Europe—at a 7.2 % initial yield, and it aims for $5 billion in 2025 investment volume. Its net‑lease model allows rapid expansion with minimal operating costs, and recent moves into gaming and data‑center assets signal a strategic push into high‑growth sectors.

    Financially, Realty Income is solid: $5.1 billion in liquidity, A3/Stable and A‑/Stable ratings, and a fixed‑charge coverage ratio of 4.5. The REIT has delivered 30 + years of consecutive monthly dividends and 112 consecutive quarterly increases, reinforcing its reputation for stability.

    However, growth in AFFO may be modest due to tighter spreads and macro uncertainty. Retail exposure also introduces risk from tenant bankruptcies or trade disruptions. Realty Income projects a 75‑basis‑point rent loss in 2025, partly from credit risk in recently acquired tenants. Consequently, dividend hikes are expected to be more measured.

    Prologis, by contrast, thrives on e‑commerce logistics and data‑center demand, positioning it for higher growth but with greater exposure to market cycles. Investors weighing long‑term growth versus dependable income will find Realty Income’s steady, diversified model appealing, while Prologis offers upside potential tied to the digital economy’s expansion.