Realty Income Corporation (O) Stock Analysis

Realty Income’s primary competitive advantage is its scale and diversification. With over 15,600 properties across 50 U.S. states and eight countries, and more than 1,600 clients in 91 industries, O’s portfolio is less exposed to single-tenant or sector risk than most peers. For comparison, National Retail Properties (NNN) and Agree Realty (ADC) each own fewer than 2,000 properties, and both are U.S.-only.

O’s tenant base is weighted toward essential, non-discretionary retail (e.g., 7-Eleven, Dollar General, Walgreens), which historically demonstrates resilience in downturns. As of Q2 2025, 73% of base rent comes from these categories, and occupancy has averaged above 98% for over two decades. No single tenant accounts for more than 3.5% of rent, limiting concentration risk.

The company’s A3/A- credit ratings (Moody’s/S&P) are among the highest in the net lease REIT sector, enabling access to low-cost capital. This supports accretive acquisitions, including large-scale sale-leasebacks and international expansion, where O has invested nearly $14 billion in Western Europe since 2019—an area where most U.S. peers lack presence.

Operationally, O’s scale yields cost efficiencies: G&A expenses are ~3.6% of revenue, below sector averages. The company’s culture emphasizes conservative balance sheet management and dividend growth, with 664 consecutive monthly dividends and 131 increases since 1994. This track record underpins strong investor loyalty and supports a premium valuation relative to most rivals.