Realty Income Corporation carries an exceptional quality score anchored by a perfect Piotroski F-Score of 9/9, 160% free cash flow conversion, and strong momentum above its 200-day moving average, but four consecutive earnings misses averaging minus 23% and analyst targets already exceeded leave no near-term price upside.
Thesis pillars
- Perfect Piotroski Quality→Stable
- Consecutive Earnings Misses↑Improving
- Positive Momentum Accumulation↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 25, 2026· older than 90 days
Realty Income Corporation (O) Stock Analysis
Real Estate · REIT - Retail
Sell if holding. Analyst target reached at $57.50 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Real Estate): -1.2.
Realty Income is a net lease REIT with over 15,500 freestanding commercial properties across all 50 U.S. states, the UK, and eight European countries, leased to a diversified base of commercial operators under long-term net leases. Revenue comes from contractually defined rental... Read more
Sell if holding. Analyst target reached at $57.50 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Real Estate): -1.2. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.8/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost earnings 0.60, earnings proximity 111d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Realty Income Corporation
About Realty Income Corporation
Realty Income held over 15,500 net-leased freestanding commercial properties in all 50 U.S. states, the United Kingdom, and eight other European countries at December 31, 2025, with top-20 clients representing 35.8% of annualized base rent. U.K. and European assets grew to approximately 19% of annualized base rent by year-end 2025, up from roughly 14% at year-end 2024, as international properties accounted for approximately 60% of total acquisition volume in 2025. The company also held loans and preferred equity interests totaling $3.1 billion at December 31, 2025, compared with $1.5 billion a year earlier.
Realty Income earns revenue through net lease contracts under which clients typically pay real estate taxes, insurance, and maintenance, leaving the company entitled to contractually defined base rent — many with embedded escalators tied to fixed amounts, inflation indices, or a percentage of clients' gross sales. Retail properties represent a significant portion of the portfolio, with a focus on service-oriented, non-discretionary, and/or low-price-point formats considered resilient to e-commerce. The top-20 client roster included 11 investment-grade-rated companies or their affiliates as of December 31, 2025, with 32.2% of total portfolio annualized base rent coming from investment-grade clients. In recent years the company has added property types beyond traditional freestanding retail — including data centers, gaming facilities, and industrial properties — and entered Poland and the Netherlands in 2025. In January 2026, Realty Income made initial investments in Mexico through a joint venture with institutional partners.
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Gaming properties expose Realty Income to a distinct regulatory layer: gaming authorities retain broad discretion over licensing, staffing, and operational requirements and could subject the company as landlord to compliance obligations or restrictions on its gaming clients. The 10-K also notes that international expansion introduces foreign currency risk, with local-currency indebtedness funding international investments and hedging instruments that may not fully offset exchange rate volatility. The company's private capital vehicle and joint ventures introduce additional risks including partner redemption rights, valuation disputes, and possible termination of management arrangements.
See also: Real Estate · REIT - Retail
From Realty Income Corporation's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated Nov 2, 2026Recent Developments — Realty Income Corporation
Latest news
- NEWS Realty Income Corp. stock underperforms Monday when compared to competitors despite daily gains - MarketWatch — MarketWatch Nov 2, 2026 negative
- NEWS Realty Income and 4 More High-Yield Dividend Stocks for November - 24/7 Wall St. — 24/7 Wall St. Oct 31, 2026 positive
- NEWS Realty Income (O) Stock May Sit Above Fair Value On Earnings - Yahoo Finance — Yahoo Finance Oct 29, 2026 neutral
- NEWS Realty Income (O) Stock Trades At An Earnings Premium To Peers - Simply Wall St — Simply Wall St Oct 29, 2026 neutral
- NEWS Realty Income Corp. stock outperforms competitors despite losses on the day - MarketWatch — MarketWatch Oct 28, 2026 positive
Latest item Nov 2, 2026 · Generated 2026-11-04T11:49:37Z.
Upcoming dated catalysts
Thesis
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Quality Signals
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Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $57.50 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Real Estate): -1.2. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $55.52. Score 5.8/10, moderate confidence.
Analyst target: $57.74 (+0.4% upside). Prior stop was $55.52. Stop-loss: $55.52.
Analyst target reached - limited upside remaining; Sector modifier (Real Estate): -1.2; Consecutive earnings misses (3).
Realty Income Corporation trades at a P/E of 39.4 (forward 37.0). TrendMatrix value score: 4.9/10. Verdict: Sell.
31 analysts rate O, with a consensus score of 3.5/5. 21 analysts publish price targets averaging $64.
What does Realty Income Corporation do?Realty Income is a net lease REIT with over 15,500 freestanding commercial properties across all 50 U.S. states, the...
Realty Income is a net lease REIT with over 15,500 freestanding commercial properties across all 50 U.S. states, the UK, and eight European countries, leased to a diversified base of commercial operators under long-term net leases. Revenue comes from contractually defined rental payments where clients bear most operating expenses; 32.2% of annualized base rent derives from investment-grade-rated clients or affiliates. The company has increased its dividend for over 31 consecutive years.