Realty Income Corporation (NYSE:O) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Seventeen brokerages rate Realty Income “Moderate Buy,” with eight buy ratings, one strong buy, seven holds and one sell. The average 12-month price target is $67.23, versus a reported share price of $59.24.
• Recent financial results were solid: Realty Income matched quarterly earnings expectations at $1.09 per share, while revenue of $1.55 billion exceeded estimates and rose 9.7% year over year. Analysts expect approximately $4.42 in full-year EPS.
• Income appeal remains central: The REIT increased its monthly dividend to $0.2715 per share, representing an annualized yield of about 5.5%. Institutional investors own 70.81% of the stock, while several funds recently increased or initiated positions.

Shares of Realty Income Corporation (NYSE:O - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the seventeen research firms that are covering the company, MarketBeat reports. One analyst has rated the stock with a sell rating, seven have issued a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $67.2344.

A number of research analysts recently weighed in on the company. Weiss Ratings raised Realty Income from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 20th. Wells Fargo & Company decreased their target price on Realty Income from $65.00 to $64.00 and set an "equal weight" rating for the company in a research report on Tuesday, September 1st. Scotiabank lowered their price target on Realty Income from $72.00 to $67.00 and set a "sector outperform" rating on the stock in a report on Thursday, June 18th. Barclays dropped their price target on shares of Realty Income from $67.00 to $65.00 and set an "equal weight" rating on the stock in a research report on Friday, September 4th. Finally, Stifel Nicolaus set a $70.75 price objective on shares of Realty Income in a report on Tuesday, June 30th.

Institutional Investors Weigh In On Realty Income

A number of hedge funds have recently bought and sold shares of O. MCF Advisors LLC increased its stake in Realty Income by 43.2% during the 2nd quarter. MCF Advisors LLC now owns 3,455 shares of the real estate investment trust's stock worth $214,000 after purchasing an additional 1,043 shares in the last quarter. National Pension Service lifted its position in shares of Realty Income by 3.1% in the second quarter. National Pension Service now owns 1,668,650 shares of the real estate investment trust's stock worth $103,390,000 after purchasing an additional 50,790 shares in the last quarter. WINTON GROUP Ltd bought a new stake in shares of Realty Income in the second quarter worth $936,000. Engineers Gate Manager LP acquired a new position in Realty Income during the second quarter worth $287,000. Finally, Pinnacle Wealth Management Advisory Group LLC acquired a new position in shares of Realty Income during the 2nd quarter worth about $215,000. 70.81% of the stock is currently owned by institutional investors.

Realty Income Trading Down 0.4%

Shares of NYSE:O opened at $59.24 on Tuesday. The stock has a market capitalization of $56.05 billion, a PE ratio of 43.24, a P/E/G ratio of 4.23 and a beta of 0.71. Realty Income has a 1 year low of $55.86 and a 1 year high of $67.93. The firm has a fifty day moving average price of $62.93 and a 200 day moving average price of $62.79. The company has a current ratio of 5.88, a quick ratio of 5.88 and a debt-to-equity ratio of 0.73.

Realty Income (NYSE:O - Get Free Report) last posted its earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 earnings per share for the quarter, meeting the consensus estimate of $1.09. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same period last year, the company earned $1.05 earnings per share. The business's revenue was up 9.7% compared to the same quarter last year. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. Analysts expect that Realty Income will post 4.42 EPS for the current fiscal year.

Realty Income Increases Dividend

The company also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a $0.2715 dividend. This is a boost from Realty Income's previous monthly dividend of $0.27. The ex-dividend date is Wednesday, September 30th. This represents a c) annualized dividend and a yield of 5.5%. Realty Income's payout ratio is 237.23%.

Realty Income News Roundup

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Realty Income and KKR agreed to establish a euro-denominated joint venture. KKR will invest €528 million for a 49% interest in a diversified portfolio of stabilized European net-lease properties contributed by Realty Income. The transaction is expected to provide a 5.9% initial cap rate, preserve Realty Income’s majority ownership, and receive 100% permanent-equity treatment from rating agencies—potentially supporting capital recycling, balance-sheet flexibility, and the company’s private-capital strategy. Realty Income and KKR to Establish Euro-Denominated Joint Venture
• Positive Sentiment: Commentary continues to highlight Realty Income’s monthly dividend, extensive payment history, and growing U.S. Core Plus Fund. The fund can generate management fees and expand Realty Income’s access to property types beyond its traditional net-lease portfolio, offering a potential long-term growth avenue. Realty Income Has a New Revenue Stream, and It's Growing Fast
• Neutral Sentiment: Chief Financial Officer Jonathan Pong is scheduled to participate in a Bank of America global real estate conference on September 15. Investors may look for comments on European expansion, private capital, financing, and 2026 guidance, but the announcement itself does not change earnings estimates or dividend policy. Realty Income to Present at Bank of America's 2026 Global Real Estate Conference
• Neutral Sentiment: Investor articles remain broadly favorable toward Realty Income as a long-term income holding, but they are opinion-based and unlikely to create a significant near-term trading catalyst. The stock’s relatively elevated valuation and position below its 50-day and 200-day moving averages may also be limiting the market’s response to the positive strategic news.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.

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