How Is Realty Income’s Stock Performance Compared to Other Real Estate Stocks?
Realty Income Corporation (O), based in San Diego, California, focuses on acquiring and managing freestanding commercial properties that generate rental income through long-term net lease agreements. With a market cap of $49.4 billion, the company owns 15,450 properties leased to more than 1,500 tenants across 90 industries.
Companies worth $10 billion or more are generally described as "large-cap stocks," Realty Income fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the retail REITs industry. Realty Income’s diverse portfolio of high-quality, long-term net lease properties, a broad tenant base, and a strong financial position enable stable cash flows and consistent growth, solidifying its leadership in the REIT sector.
Realty Income achieved its 52-week high of $64.88 on Oct. 21 and is currently trading 14% below that peak. O stock has declined 11.2% over the three months, compared to the Real Estate Select Sector SPDR Fund’s (XLRE) 4% fall during the same time frame.
Over the longer term, O has gained 3.6% over the past 52 weeks but dropped 2.9% in 2024, lagging behind XLRE’s 13.9% gains over the past year and 7.7% returns on a YTD basis.
Realty Income stock has been trading below its 50-day and 200-day moving averages since the end of October, suggesting its bearish price trend.
Realty Income released its Q3 earnings report on Nov. 4, which pushed the stock up marginally. While the company’s topline figure of $1.3 billion managed to exceed Wall Street forecasts narrowly, the company’s adjusted fund from operations (FFO) of $1.05 per share perfectly aligned with street estimates.
Realty Income’s competitor, Kimco Realty Corporation (KIM), gained 22.2% over the past year and 16.1% in 2024, outpacing Realty Income’s performance over the same time frames.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” The mean target price of $63.62 represents a 14.1% potential upside from current price levels.
On the date of publication, Kritika Sarmah 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.