ONYSEReal Estate Investment TrustsUS GAAP · USD

Realty Income Corporation

Realty Income Corp is a U.S.-based real estate investment trust that owns and leases commercial properties under long-term net lease agreements. Its portfolio spans freestanding properties across the United States, the United Kingdom, and continental Europe, with tenants operating in a wide range of retail and service industries.

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Revenue5,749m USD
+9.1 %y/y
Net income1,059m USD
+23.0 %y/y
Free cash flow3,995m USD
+11.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

02,0004,0006,000m USD2020: 1,647 m USD20202021: 2,080 m USD20212022: 3,344 m USD20222023: 4,079 m USD20232024: 5,271 m USD20242025: 5,749 m USD20255,749
RevenueOperating profit (EBIT)

Business

Share of revenue
Net lease rental income95 %

Rental income from commercial properties leased on a net basis, where tenants typically pay taxes, insurance, and maintenance.

Property reimbursements3 %

Recoveries and reimbursements related to property expenses and operating items passed through to tenants.

Other lease-related income2 %

Lease termination fees, settlement income, percentage rent, and similar ancillary lease revenues.

Customers

Realty Income leases properties to corporate tenants across retail, service, industrial, and other commercial end markets. Its tenant base includes grocery, convenience store, home improvement, drug store, restaurant, gaming, and other operators that use real estate as part of their operating footprint.

Retail and service tenants

Grocery, convenience, drug, restaurant, and service operators lease locations for customer access and operating continuity.

Investment-grade corporate tenants

Higher-credit tenants lease properties for long durations, supporting portfolio quality and financing appeal.

Single-tenant property users

Businesses that occupy standalone properties and prefer sale-leaseback or direct lease structures.

Diversified commercial operators

Tenants in home improvement, automotive, entertainment, and other sectors that broaden portfolio exposure.

Strategy

Realty Income’s strategy centers on acquiring income-producing properties under long-term net leases and recycling capital into additional properties over time. It emphasizes tenant diversification, investment-grade exposure, and a broad property base to support recurring rent streams and monthly dividends.

Acquire additional net lease propertiesShort term

Growth depends on continuously adding income-producing real estate.

Maintain diversified tenant and industry mixMedium term

Diversification helps stabilize rent collection and reduce tenant-specific risk.

Use capital markets efficientlyMedium term

The REIT model relies on external capital to fund acquisitions and growth.

Geography

Realty Income owns or holds interests in properties across all 50 U.S. states, the United Kingdom, and eight other European countries. The business is geographically diversified, but its cash flows are still exposed to local lease markets, currency movements, and country-specific tax and legal regimes.

Risks

Realty Income depends on continued property acquisitions, so competition for assets and access to capital are central risks. Its results are also exposed to tenant credit quality, lease rollover, interest rates, foreign exchange, and impairment risk on real estate assets.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Competition for acquisition opportunities1Capital market dependence2Tenant credit and industry concentration3Interest rate risk4Foreign currency and cross-border risk5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Competition for acquisition opportunitiesImpact: HighLikelihood: Medium

    The business must keep buying properties to grow, but many buyers compete for the same assets.

    Exposure: Property acquisitions and portfolio expansion

  2. Capital market dependenceImpact: HighLikelihood: Medium

    Acquisitions are funded through equity and debt, so market disruption can limit growth.

    ExposureCommon stockUnsecured notesTerm loansCommercial paper
  3. Tenant credit and industry concentrationImpact: MediumLikelihood: Medium

    Rent depends on tenant operating performance, especially in retail and service sectors.

    ExposureGroceryConvenienceRestaurantsHealth and fitnessGaming
  4. Interest rate riskImpact: MediumLikelihood: Medium

    Variable-rate borrowings and refinancing costs can change with market rates.

    ExposureRevolving credit facilitiesCommercial paperTerm loans
  5. Foreign currency and cross-border riskImpact: MediumLikelihood: Low

    European operations create translation and local-market exposure.

    Exposure: United Kingdom and continental Europe

Accounting

Judgemental items
Purchase price allocation for acquisitions

Acquired property values must be allocated across land, buildings, and intangibles, affecting depreciation and future results.

Impact: Reported earnings and asset basis

Real estate impairment testing

Management estimates future cash flows, holding periods, and capitalization rates to test recoverability.

Impact: Potential write-downs on underperforming properties

Straight-line rent recognition

Lease revenue is recognized over time, which can differ from cash rent received.

Impact: Revenue timing and comparability

Percentage rent and other excluded revenue

Ancillary lease income can vary with tenant sales, settlements, and lease terminations.

Impact: Quarterly revenue volatility

Foreign currency translation

European assets and rents are translated into U.S. dollars for reporting.

Impact: Reported revenue and asset values

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Last updated: 24/09/2026