Realty Income Corporation (O), headquartered in San Diego, California, is a real estate partner to the world's leading companies. With a market cap of $52.8 billion, the company owns and manages a portfolio of commercial properties located across the U.S. Realty Income focuses on acquiring single-tenant retail locations, leased to regional and national chains, and under long-term net lease agreements.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and O perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - retail industry. O's strategic acquisitions and diversified portfolio drive growth, reduce risk, and stabilize cash flows.
Despite its notable strength, O slipped 5.9% from its 52-week high of $61.09, achieved on Sep. 15. Over the past three months, O stock declined marginally, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 1.4% losses during the same time frame.
In the longer term, shares of O rose 1.6% on a six-month basis and climbed 1.4% over the past 52 weeks, outperforming XLRE’s six-month losses of 1.9% and 7.5% decline over the last year.
To confirm the bearish trend, O has been trading below its 50-day moving average since late October. Meanwhile, the stock’s current price level is mirroring its 200-day moving average, indicating stability.
On Nov. 3, O reported its Q3 results, and its shares closed down by 3.5% in the following trading session. Its adjusted FFO per share of $1.08 surpassed Wall Street expectations of $1.07. The company’s revenue was $1.5 billion, beating Wall Street's $1.4 billion forecast. O expects full-year adjusted FFO in the range of $4.25 to $4.27 per share.
In the competitive arena of REIT - retail, NNN REIT, Inc. (NNN) has lagged behind the stock, with a 2.9% downtick over the past six months and a 7.4% dip over the past 52 weeks.
Wall Street analysts are cautious on O’s prospects. The stock has a consensus “Hold” rating from the 24 analysts covering it, and the mean price target of $62.53 suggests a potential upside of 8.7% from current price levels.
