Realty Income Stock (O:NYE) is a commercial real estate investment trust (REIT) that owns and operates over 11,000 properties in the United States and Canada. The company’s tenants are primarily retail businesses but also include other industries such as office, industrial, and healthcare.
Realty Income raised its annual outlook for adjusted funds from operations (AFFO) on higher rental revenue. The company now expects AFFO per share to be between $3.98 and $4.01, up from its previous outlook of $3.96 to $4.01.
The increase in outlook is due to higher rental revenue from the company’s existing portfolio, as well as from the recent acquisition of Spirit Realty Capital. Realty Income expects to acquire Spirit Realty Capital in a $9.3 billion deal that is expected to close in the fourth quarter of 2023.
Realty Income Stock Q3 Key Takeaways:
- Realty Income Stock raised its annual AFFO outlook on higher rental revenue.
- The company now expects AFFO per share to be between $3.98 and $4.01, up from its previous outlook of $3.96 to $4.01.
- The increase in outlook is due to higher rental revenue from the company’s existing portfolio, as well as from the recent acquisition of Spirit Realty Capital.
- It expects to acquire Spirit Realty Capital in a $9.3 billion deal that is expected to close in the fourth quarter of 2023.
- The acquisition of Spirit Realty Capital is expected to boost Realty Income Stock’s AFFO per share by $0.04 to $0.06 in 2023.
Conclusion:
Realty Income Stock is a well-established REIT with a long history of dividend growth. The company has a diversified portfolio of properties and is expected to benefit from the acquisition of Spirit Realty Capital. Investors who are looking for a reliable source of income and potential for capital appreciation should consider adding Realty Income Stock to their portfolio.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
