💼 Interesting investment opportunity: the Realty Income 🚀
Known for its monthly payout and dividend increases ,Realty Income Corporation $O-0.7% is a real estate investment trust (REIT) that invests in standalone commercial real estate.
The company just upgraded its outlook for this year.
Realty Income has long been a favorite among yield-focused investors due to its attractive dividend and monthly payouts. Despite a more difficult recent year, when its stock value fell by 20 %, the current uptick in the outlook suggests better times ahead. 📈
🔍 The main cause of the decline was rising interest rates, which depressed the value of their properties. Realty Income owns a portfolio of mostly stand-alone properties leased to resilient retailers such as grocery and pharmacies, and has expanded its investments in industrial and gaming properties. It uses a long term lease model under the triple net, which reduces the risk of unexpected costs.
However, rising interest rates have led to a reduction in property values, which has negatively impacted the share price. The good news is that the period of rising rates appears to be over, which will stabilize capitalization rates. If Fed starts to lower interest rates, real estate values could rise again and so could the value of most REITs.
🔮 The company announced a plan to invest USD 3 billion in new real estate, which is about billion more than it had originally planned. This optimistic outlook is supported by an improving investment environment, particularly in Europe. The company also raised its guidance for adjusted funds from operations (AFFO) at 4,15 to $4.21 per share.
The company also expects steady rent growth and high occupancy at its properties. Given the projected value of AFFO around USD 4.20 per share and a dividend of USD 3.15, the dividend is well covered and has growth potential. 📈
🏢 Overall, it seems to me that the company's stock Realty Income is an interesting opportunity. Stabilizing interest rates, along with an optimistic outlook, make this company an attractive option for investors looking for dividend yields and stable investments.
What do you think of this company?
I agree with the others. It's a quality company, but at the current price I'm not buying anymore.
I'll add nothing more than agreement with the others. Stability in the portfolio and dare I say a company I will keep hopefully forever and gradually add to, my first such target with this company is to have 100 units. 😁
Quality reit and a stable item in my portfolio.
It's in my portfolio. For one thing, nice dividend and not so big movements. It's stability for the portfolio.