O
REALTY INCOME CORP
Real Estate • CIK: 0000726728
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Market Cap
$51.14B
P/E (TTM)
47.8x
Rev Growth (TTM)
+9.1%
Net Margin (TTM)
18.4%
FCF Yield (TTM)
7.8%
FCF Margin (TTM)
69.5%
Filing Intelligence
5.0/10
10-K filed Feb 25, 2026 • FY 2025
Executive Summary
Realty Income maintains a high property occupancy rate of 98.9% as of December 31, 2025.. Significant capital was raised through the ATM program ($2.4 billion in 2025) and investments were made...
Key Concerns
- ●Significant non-cash charges (depreciation) in FFO/AFFO calculations inflate cash flow proxies relative to GAAP net income.
- ●Non-GAAP measures (FFO, AFFO) are presented with explicit statements about potential incomparability to other companies, raising concerns...
- ●The company has $805 million in commitments for development projects with estimated rental revenue commencement dates between January 2026...
Key Strengths
- ●The company demonstrated consistent dividend growth, increasing payments by 2.9% in 2025.
- ●The company's FFO and AFFO metrics showed positive growth, indicating operational improvement.
- ●Future growth outlook is uncertain due to macroeconomic factors and potential impacts on clients.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$4.0B
Q4 '25
$1.2B+28%
Q3 '25
$943M-11%
FCF Margin
TTM69.5%
Q4 '2580.9%+26%
Sector: 0.0%Top 10%
OCF Margin69.5%
OCF/NI3.77x
CapEx Coverage–
FCF Yield7.8%
FCF Growth (2Y)+16%
Cash Conversion Cycle
62 days
DSO: 62+DIO: 0−DPO: 0
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldEst.
Est.5.7%
Div Yield5.7%
+Est. Buyback1.3%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)5.7%
FCF Payout Ratio73.1%
Free Cash Flow (TTM)$4.0B
Capital Return / FCF73.8%
Est. Dividends Paid (TTM)$2.9B
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
–
P25MedianP75
(med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
–
Asset Turnover
0.08x
8Q: 0.08x
Leverage (1+D/E)
1.01x
D/E: 0.01x
Asset & CapEx Efficiency
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $5.7B | $1.5B↑1.2% | $1.5B↑4.3% | $1.4B↑2.2% | $1.4B↑3.0% | $1.3B↑0.7% | $1.3B↓0.6% | $1.3B↑6.3% | $1.3B |
Operating Income | $963.4M | $267.4M↓5.2% | $282.1M↑58.3% | $178.3M↓24.3% | $235.6M↑26.5% | $186.3M↓18.2% | $227.8M↓6.2% | $242.8M↑94.2% | $125.0M |
Net Income | $1.1B | $296.1M↓6.2% | $315.8M↑60.4% | $196.9M↓21.2% | $249.8M↑25.2% | $199.6M↓23.7% | $261.8M↑1.9% | $256.8M↑98.0% | $129.7M |
Operating Cash Flow | $4.0B | $1.2B↑27.6% | $943.1M↓11.1% | $1.1B↑34.7% | $787.5M↓19.0% | $972.0M↑15.5% | $841.5M↓14.2% | $981.2M↑26.0% | $778.7M |
Free Cash Flow | $4.0B | $1.2B↑27.6% | $943.1M↓11.1% | $1.1B↑34.7% | $787.5M↓19.0% | $972.0M↑15.5% | $841.5M↓14.2% | $981.2M↑26.0% | $778.7M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
47.8x
Volatile
8Q: 209.3x-8806%
Valuation Lenses
Earnings
47.8x
vs – sector
Cash Flow
12.7x
EV/FCF vs –
Growth-Adj
2.3xPEG
Expensive for growth
Quality-Adj
–P/E per %ROIC
ROIC: –
Shareholder Returns
Dividend
5.7%
Buyback
–
Total Yield
5.7%
Market Cap$51.14B
EV$50.92B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
51/100
Average
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
2.7%
8Q:–
Return on Invested Capital (ROIC)
–
8Q:–
vs Sector:0.1%
Earnings Quality
Cash Conversion
3.77x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin–
Capital Efficiency
Invested Capital Turnover–
Working Capital
Cash Conversion Cycle62 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
67/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
9.1%
OpInc Growth YoY
43.6%
EPS Growth YoY
20.4%
FCF 3Y CAGR
15.9%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
—
Operating
—
Net
18.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+51.1 pts
FCF: 69.5% | Net: 18.4%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $3.96M
Interest Coverage
–
+Net cash position: $3.96M
Balance sheet risk & solvency analysis