BlackRock Inc. Invests $7 Billion in Realty Income Corporation $O

Key Points

• BlackRock acquired 112.9 million Realty Income shares in the second quarter, valued at approximately $7 billion and representing about 12.11% of the REIT. Institutional investors collectively own 70.81% of the company.
• Analysts maintain a generally positive outlook, with Realty Income receiving a consensus “Moderate Buy” rating and an average price target of $67.42, compared with a recent share price of $62.46.
• Realty Income’s latest quarterly results met earnings expectations at $1.09 per share, while revenue rose 9.7% year over year to $1.55 billion. The company also paid a monthly dividend of $0.271 per share, equivalent to an indicated yield of about 5.2%.

BlackRock Inc. acquired a new stake in Realty Income Corporation (NYSE:O - Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 112,931,238 shares of the real estate investment trust's stock, valued at approximately $6,997,219,000. BlackRock Inc. owned approximately 12.11% of Realty Income as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Realty Income by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 150,415,287 shares of the real estate investment trust's stock worth $8,478,910,000 after acquiring an additional 684,949 shares in the last quarter. State Street Corp lifted its holdings in shares of Realty Income by 0.8% in the fourth quarter. State Street Corp now owns 63,559,987 shares of the real estate investment trust's stock valued at $3,599,676,000 after purchasing an additional 531,095 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Realty Income by 2.8% during the fourth quarter. Geode Capital Management LLC now owns 29,206,196 shares of the real estate investment trust's stock worth $1,655,991,000 after buying an additional 793,100 shares during the period. Morgan Stanley boosted its position in shares of Realty Income by 21.6% during the fourth quarter. Morgan Stanley now owns 18,291,294 shares of the real estate investment trust's stock worth $1,031,080,000 after buying an additional 3,252,091 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Realty Income by 1.2% during the first quarter. Dimensional Fund Advisors LP now owns 13,018,219 shares of the real estate investment trust's stock worth $796,457,000 after buying an additional 154,581 shares in the last quarter. 70.81% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on O shares. Huntington initiated coverage on Realty Income in a research report on Wednesday, July 15th. They issued an "outperform" rating and a $70.00 target price on the stock. Robert W. Baird raised their price target on shares of Realty Income from $64.00 to $65.00 and gave the stock a "neutral" rating in a research note on Monday, July 6th. Scotiabank lowered their price objective on shares of Realty Income from $72.00 to $67.00 and set a "sector outperform" rating on the stock in a report on Thursday, June 18th. Mizuho cut their price objective on shares of Realty Income from $68.00 to $66.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 13th. Finally, Stifel Nicolaus set a $70.75 target price on shares of Realty Income in a research report on Tuesday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Realty Income currently has an average rating of "Moderate Buy" and a consensus target price of $67.42.

Realty Income Trading Down 0.4%

NYSE O opened at $62.46 on Tuesday. Realty Income Corporation has a 12 month low of $55.86 and a 12 month high of $67.93. The company has a current ratio of 5.88, a quick ratio of 5.88 and a debt-to-equity ratio of 0.73. The stock has a 50 day moving average of $63.12 and a 200-day moving average of $63.11. The company has a market cap of $59.10 billion, a PE ratio of 45.59, a PEG ratio of 4.46 and a beta of 0.71.

Realty Income (NYSE:O - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $1.09 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.09. The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.40 billion. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The business's revenue for the quarter was up 9.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. On average, equities research analysts anticipate that Realty Income Corporation will post 4.43 EPS for the current fiscal year.

Realty Income Dividend Announcement

The company also recently declared a monthly dividend, which was paid on Friday, August 14th. Investors of record on Friday, July 31st were given a dividend of $0.271 per share. The ex-dividend date was Friday, July 31st. This represents a c) annualized dividend and a dividend yield of 5.2%. Realty Income's dividend payout ratio (DPR) is currently 237.23%.

About Realty Income

Realty Income Corporation NYSE: O is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company's business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income's portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

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