Realty Income Corporation $O Stock Holdings Boosted by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System increased its Realty Income position by 6,132.2% in the second quarter, acquiring 92.5 million additional shares and holding approximately 9.94% of the REIT, valued at $5.83 billion.
• Realty Income shares were trading at $60.16, down 1.4%, while the company reported quarterly revenue of $1.55 billion and adjusted earnings of $1.09 per share, matching analyst expectations.
• The company raised its monthly dividend to $0.2715 per share, representing an annualized yield of roughly 5.4%. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $67.23.

California State Teachers Retirement System increased its position in Realty Income Corporation (NYSE:O - Free Report) by 6,132.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 94,014,077 shares of the real estate investment trust's stock after acquiring an additional 92,505,556 shares during the period. California State Teachers Retirement System owned approximately 9.94% of Realty Income worth $5,825,112,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. DGS Capital Management LLC grew its position in Realty Income by 4.3% in the 4th quarter. DGS Capital Management LLC now owns 3,836 shares of the real estate investment trust's stock worth $216,000 after purchasing an additional 158 shares during the last quarter. Tactive Advisors LLC raised its holdings in shares of Realty Income by 1.8% during the second quarter. Tactive Advisors LLC now owns 9,239 shares of the real estate investment trust's stock valued at $572,000 after buying an additional 163 shares during the last quarter. Patrick M Sweeney & Associates Inc. boosted its position in shares of Realty Income by 4.5% during the fourth quarter. Patrick M Sweeney & Associates Inc. now owns 3,801 shares of the real estate investment trust's stock worth $214,000 after buying an additional 164 shares during the period. CYBER HORNET ETFs LLC boosted its position in shares of Realty Income by 7.4% during the fourth quarter. CYBER HORNET ETFs LLC now owns 2,417 shares of the real estate investment trust's stock worth $136,000 after buying an additional 166 shares during the period. Finally, First National Trust Co boosted its position in shares of Realty Income by 1.2% during the fourth quarter. First National Trust Co now owns 15,109 shares of the real estate investment trust's stock worth $852,000 after buying an additional 180 shares during the period. 70.81% of the stock is currently owned by institutional investors.

Realty Income Trading Down 1.4%

Realty Income stock opened at $60.16 on Thursday. Realty Income Corporation has a 12-month low of $55.86 and a 12-month high of $67.93. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88. The stock has a market capitalization of $56.93 billion, a PE ratio of 43.91, a price-to-earnings-growth ratio of 4.33 and a beta of 0.71. The firm has a 50 day simple moving average of $63.18 and a 200-day simple moving average of $62.94.

Realty Income (NYSE:O - Get Free Report) last announced its earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, hitting the consensus estimate of $1.09. The firm had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.40 billion. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The firm's quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. As a group, equities research analysts expect that Realty Income Corporation will post 4.43 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 paid a dividend of $0.2715 per share. This is an increase from Realty Income's previous monthly dividend of $0.27. This represents a c) annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend is Wednesday, September 30th. Realty Income's dividend payout ratio (DPR) is 237.23%.

Key Realty Income News

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

• Positive Sentiment: Monthly dividend increased again: Realty Income raised its monthly dividend to $0.2715 per share from $0.2710, marking its 136th increase. The payout implies an annualized yield of roughly 5.3% and reinforces the company’s appeal to income-focused investors. 136th Common Stock Monthly Dividend Increase Declared by Realty Income
• Positive Sentiment: Dividend growth appears supported by operations: Coverage from adjusted funds from operations, high occupancy and plans for greater investment provide a fundamental basis for continued payout growth. Realty Income’s latest quarterly revenue also increased year over year, although earnings per share met—not exceeded—analyst expectations. Realty Income Hikes Its Dividend Again: Can Growth Continue?
• Neutral Sentiment: High investor attention: Realty Income was among the stocks heavily searched by Zacks users. This may increase near-term trading interest, but search activity alone does not establish a change in the company’s outlook. Investors Heavily Search Realty Income Corporation
• Negative Sentiment: Yield and valuation remain concerns: At approximately 5.3%, Realty Income’s yield offers only a modest premium to government bonds, increasing the importance of AFFO growth, acquisitions and disciplined valuation. Commentary questioned whether the stock is compelling at current levels, particularly given its elevated valuation metrics. Is Realty Income’s 5.3% Yield Still Compelling?
• Negative Sentiment: Rate uncertainty pressured the shares: Broader trading weakness and uncertainty about the Federal Reserve’s next move can weigh on rate-sensitive REITs such as Realty Income. The stock declined more than the broader market and remained below its 50-day and 200-day moving averages. Federal Reserve Rate Outlook

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Wells Fargo & Company lowered their target price on Realty Income from $65.00 to $64.00 and set an "equal weight" rating on the stock in a research report on Tuesday, September 1st. Huntington assumed coverage on Realty Income in a research report on Wednesday, July 15th. They set an "outperform" rating and a $70.00 price target for the company. Mizuho decreased their price target on Realty Income from $68.00 to $66.00 and set a "neutral" rating for the company in a research note on Wednesday, May 13th. Stifel Nicolaus set a $70.75 price target on Realty Income in a report on Tuesday, June 30th. Finally, Barclays lowered their price target on Realty Income from $67.00 to $65.00 and set an "equal weight" rating on the stock in a report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $67.23.

Realty Income Company Profile

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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