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Realty Income

NYSE:O
Snowflake Description

6 star dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
O
NYSE
$21B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The last earnings update was 60 days ago. More info.


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O Share Price and Events
7 Day Returns
-0.4%
NYSE:O
-2.7%
US REITs
-0.1%
US Market
1 Year Returns
39.6%
NYSE:O
13.7%
US REITs
7.6%
US Market
O Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Realty Income (O) -0.4% -4.9% 7.2% 39.6% 15.9% 59.1%
US REITs -2.7% -2% 6.1% 13.7% 7.7% 23.2%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • O outperformed the REITs industry which returned 13.7% over the past year.
  • O outperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
O
Industry
5yr Volatility vs Market

Value

 Is Realty Income undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Realty Income to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Realty Income.

NYSE:O Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:O
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.546 (1 + (1- 21%) (31.5%))
0.787
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:O using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Realty Income is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Realty Income is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:O DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 1,023.01 Analyst x6 951.66
2020 1,115.30 Analyst x6 965.14
2021 1,241.72 Analyst x2 999.59
2022 1,335.30 Est @ 7.54% 999.95
2023 1,416.68 Est @ 6.09% 986.89
2024 1,488.72 Est @ 5.09% 964.74
2025 1,553.90 Est @ 4.38% 936.74
2026 1,614.26 Est @ 3.88% 905.25
2027 1,671.36 Est @ 3.54% 871.90
2028 1,726.44 Est @ 3.3% 837.82
Present value of next 10 years cash flows $9,419.68
NYSE:O DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,726.44 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$37,197.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $37,197.48 ÷ (1 + 7.5%)10
$18,051.35
NYSE:O Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,419.68 + $18,051.35
$27,471.03
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $27,471.03 / 304.17
$91.87
NYSE:O Discount to Share Price
Calculation Result
Value per share (USD) From above. $91.87
Current discount Discount to share price of $69.06
= -1 x ($69.06 - $91.87) / $91.87
24.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Realty Income is available for.
Intrinsic value
25%
Share price is $69.06 vs Future cash flow value of $91.87
Current Discount Checks
For Realty Income to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Realty Income's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Realty Income's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Realty Income's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Realty Income's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:O PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.26
NYSE:O Share Price ** NYSE (2019-04-23) in USD $69.06
United States of America REITs Industry PE Ratio Median Figure of 152 Publicly-Listed REITs Companies 30.56x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Realty Income.

NYSE:O PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:O Share Price ÷ EPS (both in USD)

= 69.06 ÷ 1.26

54.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Realty Income is overvalued based on earnings compared to the US REITs industry average.
  • Realty Income is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Realty Income's expected growth come at a high price?
Raw Data
NYSE:O PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 54.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
8.6%per year
United States of America REITs Industry PEG Ratio Median Figure of 139 Publicly-Listed REITs Companies -0.1x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NYSE:O PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 54.97x ÷ 8.6%

6.42x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Realty Income is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Realty Income's assets?
Raw Data
NYSE:O PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $26.63
NYSE:O Share Price * NYSE (2019-04-23) in USD $69.06
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.83x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NYSE:O PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:O Share Price ÷ Book Value per Share (both in USD)

= 69.06 ÷ 26.63

2.59x

* Primary Listing of Realty Income.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Realty Income is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess Realty Income's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Realty Income has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Realty Income expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Realty Income expected to grow at an attractive rate?
  • Realty Income's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Realty Income's earnings growth is positive but not above the United States of America market average.
  • Realty Income's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:O Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:O Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 8.6%
NYSE:O Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6.6%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 1.9%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:O Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:O Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,662 1,270 471 3
2020-12-31 1,487 1,151 445 9
2019-12-31 1,386 1,036 424 9
NYSE:O Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,328 941 364
2018-09-30 1,296 924 339
2018-06-30 1,265 891 328
2018-03-31 1,236 873 313
2017-12-31 1,216 876 302
2017-09-30 1,193 862 326
2017-06-30 1,163 900 309
2017-03-31 1,134 880 297
2016-12-31 1,103 800 288
2016-09-30 1,079 799 279
2016-06-30 1,061 732 269
2016-03-31 1,044 711 260

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Realty Income's earnings are expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
  • Realty Income's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:O Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Realty Income Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:O Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.44 1.51 1.38 2.00
2020-12-31 1.37 1.43 1.28 5.00
2019-12-31 1.34 1.39 1.29 5.00
NYSE:O Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.26
2018-09-30 1.19
2018-06-30 1.17
2018-03-31 1.12
2017-12-31 1.10
2017-09-30 1.22
2017-06-30 1.17
2017-03-31 1.15
2016-12-31 1.13
2016-09-30 1.10
2016-06-30 1.09
2016-03-31 1.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Realty Income is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Realty Income's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Realty Income has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Realty Income performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Realty Income's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Realty Income's year on year earnings growth rate has been positive over the past 5 years.
  • Realty Income's 1-year earnings growth exceeds its 5-year average (20.6% vs 14.4%)
  • Realty Income's earnings growth has not exceeded the US REITs industry average in the past year (20.6% vs 22%).
Earnings and Revenue History
Realty Income's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Realty Income Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:O Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,327.84 363.61 65.50
2018-09-30 1,295.92 339.39 65.19
2018-06-30 1,264.75 328.34 62.74
2018-03-31 1,236.04 313.09 60.57
2017-12-31 1,215.77 301.51 58.45
2017-09-30 1,192.96 326.33 56.79
2017-06-30 1,163.21 308.70 55.01
2017-03-31 1,134.08 296.60 53.21
2016-12-31 1,103.17 288.49 51.97
2016-09-30 1,079.00 278.99 51.37
2016-06-30 1,060.71 269.39 50.13
2016-03-31 1,043.53 259.67 48.75
2015-12-31 1,023.29 256.69 49.30
2015-09-30 1,007.19 251.83 51.92
2015-06-30 984.02 249.07 52.08
2015-03-31 958.80 241.15 51.06
2014-12-31 933.51 224.76 51.09
2014-09-30 902.10 192.46 52.02
2014-06-30 868.46 169.21 57.64
2014-03-31 826.26 159.19 58.14
2013-12-31 780.21 137.96 56.88
2013-09-30 706.08 121.32 50.58
2013-06-30 621.15 109.77 43.27
2013-03-31 546.06 95.13 40.46
2012-12-31 484.58 97.28 38.12
2012-09-30 447.28 103.78 35.73
2012-06-30 436.31 111.52 33.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Realty Income has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Realty Income used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Realty Income's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Realty Income's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Realty Income has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Realty Income's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Realty Income's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Realty Income's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Realty Income's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Realty Income's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Realty Income Company Filings, last reported 3 months ago.

NYSE:O Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,120.98 6,505.61 10.39
2018-09-30 7,711.25 6,785.22 6.67
2018-06-30 7,512.47 6,545.68 30.72
2018-03-31 7,297.66 6,599.65 20.63
2017-12-31 7,390.71 6,116.80 6.90
2017-09-30 7,373.93 5,792.28 3.20
2017-06-30 7,021.05 5,993.22 10.95
2017-03-31 7,463.47 5,428.72 27.60
2016-12-31 6,789.31 5,844.62 9.42
2016-09-30 6,772.75 5,255.64 29.80
2016-06-30 6,822.33 4,952.47 20.44
2016-03-31 6,502.75 5,109.88 8.70
2015-12-31 6,555.59 4,825.70 40.29
2015-09-30 6,066.09 5,256.18 7.07
2015-06-30 5,986.73 5,310.08 18.74
2015-03-31 5,676.72 5,029.51 12.19
2014-12-31 5,643.36 4,942.09 3.85
2014-09-30 5,592.73 4,988.99 16.94
2014-06-30 5,867.91 4,599.96 8.91
2014-03-31 5,358.26 4,824.92 14.14
2013-12-31 5,424.85 4,173.59 10.26
2013-09-30 5,049.82 4,556.21 9.96
2013-06-30 5,108.58 4,054.86 22.58
2013-03-31 5,144.88 3,407.49 4.16
2012-12-31 2,416.29 2,869.85 5.25
2012-09-30 2,446.20 2,492.39 2.79
2012-06-30 2,476.38 1,990.26 6.06
  • Realty Income's level of debt (80.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (77.1% vs 80.1% today).
  • Debt is not well covered by operating cash flow (14.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Realty Income's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Realty Income has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Realty Income's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.93%
Current annual income from Realty Income dividends. Estimated to be 4.1% next year.
If you bought $2,000 of Realty Income shares you are expected to receive $79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Realty Income's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Realty Income's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:O Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:O Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.00 6.00
2020-12-31 2.84 11.00
2019-12-31 2.73 11.00
NYSE:O Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-16 2.712 3.958
2019-03-12 2.712 3.771
2019-02-14 2.706 3.885
2019-01-16 2.706 4.017
2018-12-12 2.652 4.164
2018-11-16 2.646 4.110
2018-10-16 2.646 4.359
2018-08-21 2.640 4.587
2018-06-19 2.640 4.746
2018-05-18 2.634 4.971
2018-04-17 2.634 5.129
2018-03-13 2.634 5.149
2018-02-16 2.628 5.247
2017-12-12 2.550 4.778
2017-11-10 2.544 4.551
2017-10-10 2.544 4.581
2017-09-12 2.544 4.396
2017-08-17 2.538 4.383
2017-07-11 2.538 4.460
2017-06-15 2.538 4.573
2017-05-16 2.532 4.593
2017-04-11 2.532 4.341
2017-03-14 2.532 4.248
2017-02-14 2.526 4.198
2017-01-17 2.526 4.214
2016-12-14 2.430 4.230
2016-11-11 2.424 4.371
2016-10-11 2.424 4.071
2016-07-12 2.394 3.561
2016-06-14 2.394 3.564
2016-05-17 2.388 3.884
2016-04-11 2.388 3.854
2016-03-21 2.388 3.839
2016-02-05 2.382 4.025
2016-01-14 2.382 4.359
2015-12-15 2.292 4.443
2015-11-10 2.286 4.654
2015-10-13 2.286 4.659
2015-08-20 2.280 4.934
2015-07-14 2.280 4.798
2015-06-16 2.280 5.005
2015-05-12 2.274 4.929
2015-04-15 2.274 4.735
2015-03-10 2.274 4.468
2015-02-10 2.268 4.458
2015-01-20 2.268 4.258
2014-12-16 2.201 4.424
2014-11-18 2.197 4.760
2014-10-14 2.197 4.818
2014-09-09 2.197 5.229
2014-08-21 2.194 4.892
2014-07-15 2.194 4.932
2014-06-17 2.194 4.919
2014-05-06 2.190 5.031
2014-04-15 2.190 5.108
2014-03-11 2.190 5.294
2014-02-10 2.186 5.110
2014-01-21 2.186 5.449
2013-12-17 2.186 5.725
2013-11-12 2.182 5.683
2013-10-15 2.182 5.249
2013-09-10 2.182 5.451
2013-08-22 2.179 5.495
2013-07-16 2.179 5.062
2013-06-18 2.179 5.083
2013-05-07 2.175 4.500
2013-04-16 2.175 4.363
2013-03-13 2.175 4.777
2013-02-12 2.171 4.816
2013-01-16 2.171 4.971
2012-12-18 1.821 4.389
2012-11-13 1.817 4.584
2012-10-16 1.817 4.574
2012-09-18 1.817 4.418
2012-08-16 1.814 4.297
2012-07-17 1.754 4.254
2012-06-19 1.754 4.239
2012-05-08 1.750 4.482
2012-04-17 1.750 4.486
2012-03-13 1.750 4.591
2012-02-08 1.746 4.726
2012-01-17 1.746 4.790
2011-12-13 1.746 5.005
2011-10-18 1.742 5.232
2011-08-25 1.739 5.240
2011-07-19 1.739 5.362
2011-06-22 1.739 5.124
2011-05-03 1.735 5.047
2011-04-19 1.735 4.875
2011-03-15 1.735 4.999
2011-02-08 1.731 4.944
2011-01-18 1.731 5.004
2010-12-15 1.731 5.088
2010-11-09 1.727 5.105
2010-10-19 1.727 4.948
2010-09-21 1.727 5.056
2010-08-24 1.724 5.178
2010-07-20 1.724 5.333
2010-06-22 1.724 5.556
2010-05-12 1.720 5.502
2010-04-21 1.720 5.304
2010-03-23 1.720 5.492
2010-02-09 1.716 6.033
2010-01-20 1.716 6.371
2009-12-15 1.716 6.376
2009-11-17 1.712 6.741
2009-10-20 1.712 7.236
2009-09-15 1.712 6.840
2009-08-19 1.709 6.755
2009-07-21 1.709 7.111
2009-06-16 1.709 7.840
2009-05-12 1.705 7.857
2009-04-24 1.705 7.793

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Realty Income's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (413.2x coverage).
X
Income/ dividend checks
We assess Realty Income's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Realty Income afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Realty Income has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Realty Income's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sumit Roy
COMPENSATION $7,010,019
AGE 48
TENURE AS CEO 0.5 years
CEO Bio

Mr. Sumit Roy serves as President since November 2015 and has been Chief Executive Officer and Director at Realty Income Corporation since October 16, 2018. Mr. Roy served as the Chief Operating Officer of Realty Income Corporation since October 1, 2014 until October 2018 and has been Mr. Roy served as Chief Investment Officer of Realty Income Corporation from October 16, 2013 to November 2015 and served as its Executive Vice President until December 1, 2015. Mr. Roy served as an Executive Vice President of Acquisitions at Realty Income Corporation from March 1, 2013 to October 2013. Mr. Roy served as Senior Vice President, Real Estate Acquisitions at Realty Income Corporation since September 13, 2011 to February 2013. Mr. Roy was an investment banker in New York for nine years. During Mr. Roy's investment banking career, he was responsible for more than $57 billion in real estate capital markets and advisory transactions. He held positions as Manager, Corporate Finance for Meadwestvaco; an Associate, Technology Investment Banking at BofA Merrill Lynch; and as a Principal at Cap Gemini S.A. He was an Executive Director of UBS Investment Bank, Australia. Mr. Roy holds both a Bachelor and a Master’s degree in Computer Science and an M.B.A. in Finance and Economics from the University of Chicago, Booth School of Business.

CEO Compensation
  • Sumit's compensation has increased by more than 20% in the past year.
  • Sumit's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Realty Income management team in years:

0.9
Average Tenure
49.5
Average Age
  • The average tenure for the Realty Income management team is less than 2 years, this suggests a new team.
Management Team

Sumit Roy

TITLE
President
COMPENSATION
$7M
AGE
48
TENURE
0.5 yrs

Paul Meurer

TITLE
Executive VP
COMPENSATION
$3M
AGE
52
TENURE
18.3 yrs

Mark Hagan

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$2M
AGE
51
TENURE
0.9 yrs

Mike Pfeiffer

TITLE
Chief Administrative Officer
COMPENSATION
$2M
AGE
57
TENURE
0.2 yrs

Neil Abraham

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$2M
AGE
46
TENURE
0.9 yrs

Jonathan Pong

TITLE
Senior VP and Head of Capital Markets & Investor Relations

Shannon Kehle

TITLE
Senior Vice President of Human Resources
TENURE
5.3 yrs

Teresa Glenn

TITLE
Associate VP

Benjamin Fox

TITLE
Executive VP of Asset Management & Real Estate Operations
AGE
38
TENURE
6.3 yrs

Janeen Bedard

TITLE
Senior Vice President of Development
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Realty Income board of directors in years:

7.2
Average Tenure
60.5
Average Age
  • The tenure for the Realty Income board of directors is about average.
Board of Directors

Mike McKee

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$277K
AGE
72
TENURE
7.2 yrs

Sumit Roy

TITLE
President
COMPENSATION
$7M
AGE
48
TENURE
0.5 yrs

Kathleen Allen

TITLE
Director
COMPENSATION
$242K
AGE
72
TENURE
19.2 yrs

Ronald Merriman

TITLE
Director
COMPENSATION
$257K
AGE
73
TENURE
13.8 yrs

Priya Huskins

TITLE
Director
COMPENSATION
$257K
AGE
46
TENURE
11.3 yrs

Greg McLaughlin

TITLE
Director
COMPENSATION
$242K
AGE
58
TENURE
11.8 yrs

A. Chapman

TITLE
Director
COMPENSATION
$232K
AGE
71
TENURE
7.2 yrs

Steve Sterrett

TITLE
Director
COMPENSATION
$232K
AGE
62
TENURE
4.5 yrs

Reggie Gilyard

TITLE
Director
COMPENSATION
$231K
AGE
54
TENURE
0.8 yrs

Gerry Lopez

TITLE
Director
COMPENSATION
$231K
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. Aug 18 Sell A. Chapman Individual 24. Aug 18 24. Aug 18 -9,000 $58.56 $-527,040
20. Aug 18 Sell Gregory McLaughlin Individual 16. Aug 18 16. Aug 18 -3,100 $58.00 $-179,800
06. Aug 18 Sell Michael Pfeiffer Individual 06. Aug 18 06. Aug 18 -10,000 $57.63 $-576,300
06. Aug 18 Sell Paul Meurer Individual 06. Aug 18 06. Aug 18 -13,285 $57.62 $-765,482
06. Aug 18 Sell Sumit Roy Individual 06. Aug 18 06. Aug 18 -18,682 $57.49 $-1,074,028
06. Aug 18 Sell John Case Individual 06. Aug 18 06. Aug 18 -35,000 $57.70 $-2,019,500
24. May 18 Sell Kathleen Allen Individual 24. May 18 24. May 18 -4,000 $52.55 $-210,200
X
Management checks
We assess Realty Income's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Realty Income has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Realty Income's (NYSE:O) Share Price Deserve to Gain 63%?

For example, long term Realty Income Corporation (NYSE:O) shareholders have enjoyed a 63% share price rise over the last half decade, well in excess of the market return of around 45% (not including dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Realty Income achieved compound earnings per share (EPS) growth of 12% per year.

Simply Wall St -

Read This Before Buying Realty Income Corporation (NYSE:O) Shares

The Last 12 Months Of Insider Transactions At Realty Income. … As a general rule we consider it to be discouraging when insiders are selling below the current price. … All up, insiders sold more shares in Realty Income than they bought, over the last year

Simply Wall St -

Realty Income Corporation (NYSE:O): Poised For Long Term Success?

Based on Realty Income Corporation's (NYSE:O) earnings update on 31 December 2018,. … in-line with its track record, as upcoming earnings growth is expected to be 15% next year, similar to the range of average earnings growth for the past five years of 14% per year

Simply Wall St -

Investing In Property Through Realty Income Corporation (NYSE:O)

real estate investment trust (REIT) based in San Diego, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent

Simply Wall St -

Is Realty Income Corporation's (NYSE:O) ROE Of 4.4% Concerning?

To keep the lesson grounded in practicality, we'll use ROE to better understand Realty Income Corporation (NYSE:O). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.044 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What You Need To Know Before Investing In Realty Income Corporation (NYSE:O)

real estate investment trust (REIT) based in San Diego, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

Realty Income Corporation's (NYSE:O) Insiders Have Sold Shares - Should You?

Realty Income, The Monthly Dividend Company is an S&P 500 company dedicated to providing stockholders with dependable monthly income. … Generally, insiders selling shares in their own firm sends a bearish signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Investing In Property Through Realty Income Corporation (NYSE:O)

real estate investment trust (REIT) based in San Diego, United States. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities … These items can distort the bottom line and not necessarily reflective of O’s daily operations.

Simply Wall St -

Is Buying Realty Income Corporation (NYSE:O) For Its Upcoming US$0.22 Dividend A Good Choice?

Investors who want to cash in on Realty Income Corporation's (NYSE:O) upcoming dividend of US$0.22 per share have only 2 days left to buy the shares before its ex-dividend date, 29 June 2018, in time for dividends payable on the 13 July 2018. … Should you diversify into Realty Income and boost your portfolio income stream? … See our latest analysis for Realty Income

Simply Wall St -

Investing In Realty Income Corporation (NYSE:O): What You Need To Know

Realty Income Corporation is a US$15.04B large-cap real estate investment trust (REIT) based in San Diego, United States. … View our latest analysis for Realty Income REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. … This tells us how long it will take O to pay off its debt using its income from its main business activities, and gives us an insight into O’s ability to service its borrowings.

Simply Wall St -

Company Info

Description

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,700 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 584 consecutive common stock monthly dividends throughout its 50-year operating history and increased the dividend 100 times since Realty Income's public listing in 1994 (NYSE: O).

Details
Name: Realty Income Corporation
O
Exchange: NYSE
Founded: 1969
$20,650,376,865
$20,980,446,093
304,174,059
Website: http://www.realtyincome.com
Address: Realty Income Corporation
11995 El Camino Real,
San Diego,
California, 92130,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE O Common Stock New York Stock Exchange US USD 18. Oct 1994
DB RY6 Common Stock Deutsche Boerse AG DE EUR 18. Oct 1994
LSE 0KUE Common Stock London Stock Exchange GB USD 18. Oct 1994
NYSE O PRECL PFD CL E 6.75% New York Stock Exchange US USD 14. Dec 2006
Number of employees
Current staff
Staff numbers
165
Realty Income employees.
Industry
Retail REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:43
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.