|O Overview
O

REALTY INCOME CORP

Real Estate • CIK: 0000726728

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Market Cap
$54.47B
P/E (TTM)
56.3x
Rev Growth (TTM)
+11.9%
Net Margin (TTM)
17.2%
FCF Yield (TTM)
6.9%
FCF Margin (TTM)
67.2%

LATEST EARNINGS

Q3 FY2025
3 months ago
View source
Revenue
Net Income
EPS
  • Invested $1.4 billion in the quarter with an initial weighted average cash yield of 7.7%, including significant European investments.
  • Achieved a rent recapture rate of 103.5% on re-leased properties, indicating effective asset management.
  • Portfolio occupancy remained strong at 98.7% as of September 30, 2025.
  • Announced the 112th consecutive quarterly dividend increase, highlighting a consistent return to shareholders.

Cash Flow Health

Free Cash Flow3/8 positive
TTM$3.8B
Q3 '25
$943M
Q2 '25
$0
FCF Margin
TTM67.2%
Q3 '2564.1%
Sector: 32.2%Top 25%
OCF Margin67.2%
OCF/NI3.91x
CapEx Coverage
FCF Yield6.9%
FCF Growth (2Y)+4%
Cash Conversion Cycle
60 days
DSO: 60+DIO: 0DPO: 0

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldEst.
Est.1.8%
Div Yield1.8%
+
Est. Buyback3.1%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.8%
FCF Payout Ratio25.6%
Free Cash Flow (TTM)$3.8B
Capital Return / FCF38.9%
Est. Dividends Paid (TTM)$963.7M
Estimated: Buyback data estimated from FCF. Actual repurchase data not available for this company.
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
2.1%
Stable
+9.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.5%
8Q: 16.1%
Asset Turnover
0.08x
8Q: 0.00x
Leverage (1+D/E)
1.01x
D/E: 0.01x
DuPont: 1.2%2.1% ROIC
Asset & CapEx Efficiency
Invested Cap Turn
0.15x
8Q:0.14x
Flat
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024Q4 2023
Revenue
$5.6B
$1.5B4.3%
$1.4B2.2%
$1.4B3.0%
$1.3B0.7%
$1.3B0.6%
$1.3B6.3%
$1.3B17.1%
$1.1B
Operating Income
$882.2M
$282.1M
$0
$0100.0%
$178.3M
$0
$0100.0%
$235.6M
$0
Net Income
$962.1M
$315.8M60.4%
$196.9M21.2%
$249.8M25.2%
$199.6M23.7%
$261.8M1.9%
$256.8M98.0%
$129.7M40.6%
$218.4M
Operating Cash Flow
$3.8B
$943.1M11.1%
$1.1B34.7%
$787.5M19.0%
$972.0M15.5%
$841.5M14.2%
$981.2M26.0%
$778.7M2.4%
$760.7M
Free Cash Flow
$3.8B
$943.1M
$0
$0100.0%
$1.1B
$0
$0100.0%
$787.5M
$0
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
56.3x
High PEG ratio (4.7x) suggests expensive for growth
Valuation Lenses
Earnings
56.3x
vs sector
Cash Flow
13.8x
EV/FCF vs
Growth-Adj
4.7xPEG
Expensive for growth
Quality-Adj
26.8P/E per %ROIC
ROIC: 2.1%
Shareholder Returns
Dividend
1.8%
Buyback
Total Yield
1.8%
Market Cap$54.47B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
59/100
Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
2.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
2.1%
8Q:
+9.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.5%
Asset Turnover: 0.08x

Earnings Quality

Cash Conversion

3.91x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin92.6%

Capital Efficiency

Invested Capital Turnover0.15x

Working Capital

Cash Conversion Cycle60 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
64/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
11.9%
OpInc Growth YoY
N/A
EPS Growth YoY
2.9%
FCF 3Y CAGR
3.8%

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
92.6%
Operating
15.7%
Below Avg in sector
Net
17.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+50.0 pts
FCF: 67.2% | Net: 17.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $26.26M
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.01x
Balance sheet risk & solvency analysis