Sumitomo Mitsui Trust Group Inc. Reduces Stake in Realty Income Corporation $O

Key Points

• Sumitomo Mitsui Trust Group cut its Realty Income stake by 18.1% in the first quarter, selling 657,018 shares and ending with 2.97 million shares worth about $181.6 million.
• Realty Income reported better-than-expected quarterly results, with EPS of $1.13 versus $1.10 expected and revenue of $1.55 billion, up 12.2% year over year. The company also reaffirmed FY2026 EPS guidance of 4.410-4.440.
• The REIT announced another monthly dividend of $0.271 per share, payable August 14, implying a roughly 5.1% annualized yield. Despite mixed analyst views, the stock currently has a Hold consensus rating and a $66.65 target price.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Realty Income Corporation (NYSE:O - Free Report) by 18.1% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 2,968,288 shares of the real estate investment trust's stock after selling 657,018 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.32% of Realty Income worth $181,600,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in O. EFG International AG acquired a new position in shares of Realty Income in the 4th quarter valued at $26,000. Stance Capital LLC acquired a new stake in Realty Income during the 3rd quarter worth $27,000. Evolution Wealth Management Inc. lifted its position in Realty Income by 257.1% in the fourth quarter. Evolution Wealth Management Inc. now owns 500 shares of the real estate investment trust's stock valued at $28,000 after acquiring an additional 360 shares during the last quarter. Quattro Advisors LLC purchased a new stake in Realty Income in the fourth quarter valued at $29,000. Finally, Ameriflex Group Inc. lifted its position in Realty Income by 68.7% in the third quarter. Ameriflex Group Inc. now owns 528 shares of the real estate investment trust's stock valued at $32,000 after acquiring an additional 215 shares during the last quarter. Hedge funds and other institutional investors own 70.81% of the company's stock.

Realty Income Stock Performance

Shares of O stock opened at $63.15 on Friday. The stock has a market capitalization of $58.89 billion, a PE ratio of 51.76, a price-to-earnings-growth ratio of 4.93 and a beta of 0.72. Realty Income Corporation has a 52-week low of $55.86 and a 52-week high of $67.93. The stock's 50-day moving average price is $61.99 and its 200 day moving average price is $62.12. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 0.72.

Realty Income (NYSE:O - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The real estate investment trust reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $0.03. Realty Income had a return on equity of 2.80% and a net margin of 18.94%.The company had revenue of $1.55 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same period last year, the firm earned $1.06 EPS. The firm's revenue for the quarter was up 12.2% on a year-over-year basis. Realty Income has set its FY 2026 guidance at 4.410-4.440 EPS. As a group, equities research analysts forecast that Realty Income Corporation will post 4.45 EPS for the current year.

Realty Income Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, July 31st will be issued a dividend of $0.271 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) annualized dividend and a dividend yield of 5.1%. Realty Income's dividend payout ratio (DPR) is currently 266.39%.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on O shares. Freedom Capital raised Realty Income from a "hold" rating to a "strong-buy" rating in a report on Monday, May 11th. Morgan Stanley set a $67.00 target price on Realty Income in a report on Monday, April 27th. Jefferies Financial Group began coverage on Realty Income in a research report on Monday, June 1st. They issued a "buy" rating and a $69.00 target price for the company. Royal Bank Of Canada raised their price target on Realty Income from $70.00 to $71.00 and gave the stock an "outperform" rating in a research note on Thursday, May 7th. Finally, Mizuho cut their price target on Realty Income from $68.00 to $66.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $66.65.

More Realty Income News

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

• Positive Sentiment: Realty Income announced another monthly dividend, extending its streak to 673 consecutive payouts and reinforcing its reputation as a dependable income stock. The new dividend supports a roughly 5.1% annualized yield, which should appeal to dividend-focused investors.
• Positive Sentiment: An analyst reportedly raised the price target on Realty Income and reiterated a Buy rating, suggesting confidence in the company’s earnings power and portfolio quality.
• Positive Sentiment: Coverage highlighting the company’s evolving portfolio argues that Realty Income’s valuation may not yet reflect its improving asset mix and long-term growth potential.
• Neutral Sentiment: Realty Income is drawing additional investor attention, while broader articles about high-dividend real estate ETFs and monthly-income portfolios may be helping keep the REIT sector in focus rather than driving a company-specific move.
• Negative Sentiment: The stock has also been weighed by a recent pullback versus the broader market, with traders showing some caution after the shares slipped in the latest session.

Realty Income Company Profile

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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