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Opinions Joshua Varghese
Realty Income CorpOBUYOct 09, 2019
Joshua VargheseStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentRealty income (nyse: o), founded in 1969, is an s&p 500 company dedicated to providing shareholders with dependable monthly income. the revenue to pay monthly dividends is generated from over 4,400 commercial properties in 49 states and puerto rico that we own under long-term leases, primarily with large commercial enterprises that operate multiple locations. our shares are traded under the ticker symbol “o” on the new york stock exchange. for more information about realty income please visit us at www.realtyincome.com. Social media mentions are up 300% in the past 24h.
Premium contentRealty income (nyse: o), founded in 1969, is an s&p 500 company dedicated to providing shareholders with dependable monthly income. the revenue to pay monthly dividends is generated from over 4,400 commercial properties in 49 states and puerto rico that we own under long-term leases, primarily with large commercial enterprises that operate multiple locations. our shares are traded under the ticker symbol “o” on the new york stock exchange. for more information about realty income please visit us at www.realtyincome.com. Social media mentions are up 100% in the past 24h.
In the US, they have a whole group of REITs called “Triple Net REITs”. This is where they will basically go to a company and say “You own your building and I will buy it”. It gives a cash inflection, but in exchange for that you would want a long lease. Because of these very long safe leases, all the expenses are in the hands of the tenant, so it is a very safe cash flow stream, like a bond. However, we are going into a point in the interest rate cycle where you perhaps do not want to be owning a bond. Dividend yield of 4.1%.
Triple-net, meaning that they buy a building that is occupied and owned by the tenants, in exchange for a long-term lease. A very low risk, but very bond-like. They’ve been doing well recently with the collapse in interest rates. However, when interest rates reverse you don’t want to own this. Considering that this and bonds in general have had a great run, this is probably not the time to be buying.
This is a great time for REITs. They have been phenomenal creators of value. You need to really focus in on high quality ones. All of them, no matter how good, suffer from a rate rise risk. Cap rates are pretty low now and real estate has done extremely well. There are a lot of good reasons to suggest they are good companies, but the timing is tough. Broadly speaking, in real estate, he feels this is a cycle we are going into now. Anybody who is in the brokering side of it, as opposed to the operating side, you are probably a little bit better off. You could consider CBRE Group (CBG-N) which should work a little bit better for you.
