REALTY INCOME CORP (O)

Realty Income Corporation (NYSE: O) is a real estate investment trust founded in 1969 that describes itself as a full-service real estate capital provider and "The Monthly Dividend Company." Its primary business is the acquisition, ownership and active management of freestanding commercial properties leased under long-term net lease agreements. Under these leases, clients typically pay most or all property-level costs such as taxes, insurance and maintenance, and rent increases usually come from fixed escalators, inflation-linked increases or percentage rent. Its stated mission is to deliver dependable monthly dividends that increase over time, and it has raised its dividend 133 times since its 1994 NYSE listing.

As of December 31, 2025, the portfolio held over 15,500 properties. Retail makes up a significant portion, with a focus on service-oriented, non-discretionary and low-price-point businesses and on clients resilient to e-commerce. The company has also increased investment in data centers, gaming and industrial properties. It holds real estate credit investments, with loans and preferred equity interests totaling $3.1 billion, up from $1.5 billion a year earlier. It also runs a private capital business through joint ventures, private funds and other co-investment arrangements, earning asset management fees. Asset management activities include leasing and re-leasing, dispositions, handling client distress, and lease terminations, which produced about $48.9 million of income in 2025.

Its clients are operators ranging from investment grade and investment grade equivalent to other creditworthy companies. About 32.2% of annualized base rent comes from investment grade clients or their subsidiaries and affiliates, and the top 20 clients account for 35.8% of annualized base rent. The properties are in all 50 U.S. states, the United Kingdom and eight other European countries. The U.K. and Europe represented about 19% of annualized base rent, up from about 14% a year earlier, and about 60% of 2025 acquisition volume. The company expanded into Poland and the Netherlands in 2025 and, in January 2026, made initial investments in Mexico through a joint venture with institutional partners.

Operationally, the company sources deals through relationships with clients, owners, developers, brokers and advisors. It relies on data-driven underwriting, predictive analytics and machine learning models trained on proprietary data, along with a tailored ERP platform and robotic process automation. It funds itself through retained cash flow, dispositions, bank debt, public and private debt and equity, and its private capital platform and joint ventures. It competes with other REITs, businesses and entities in acquiring, developing and operating freestanding commercial properties. As of December 31, 2025, it had 544 employees, and its operations are subject to securities, REIT tax, environmental, zoning, gaming and other regulations.