San Diego, California-based Realty Income Corporation (O) is a real estate investment trust (REIT) that acquires and manages freestanding commercial properties. Valued at a market cap of $53 billion, the company’s properties are leased to tenants from multiple separate industries. It is scheduled to announce its fiscal Q2 earnings for 2025 after the market closes on Wednesday, Aug. 6.
Before this event, analysts project this retail REIT to report an FFO of $1.07 per share, up marginally from $1.06 per share in the year-ago quarter. The company has met or surpassed Wall Street’s FFO estimates in three of the last four quarters, while missing on another occasion. Its FFO of $1.06 per share in the previous quarter met the consensus estimates.
For the full year, analysts expect Realty Income to report FFO of $4.28 per share, up 2.2% from $4.19 per share in fiscal 2024. Its FFO is expected to further grow 3.3% year-over-year to $4.42 in fiscal 2026.
O has lagged behind the S&P 500 Index's ($SPX) 11.6% return over the past 52 weeks, with its shares up 5.3% during this period. However, it has outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) 4.7% uptick over the same time frame.
On May 5, Realty Income released its Q1 results, and its shares plunged marginally in the following trading session. The company’s revenue improved 9.5% year-over-year to $1.4 billion and topped the consensus estimates by a slight margin. Meanwhile, its AFFO of $1.06 per share advanced 2.9% from the same period last year and came in line with Wall Street expectations. Additionally, its same-store rental revenue grew 1.3% from the prior-year quarter, reaching $1.1 billion.
Wall Street analysts are moderately optimistic about O’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, five recommend "Strong Buy," one indicates a "Moderate Buy," and 17 suggest "Hold.” The mean price target for O is $61.13, indicating a 4.1% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
