Ravi Babin's questions to Realty Income Corp (O) leadership • Q4 2024
Question
Ravi Babin of Mizuho Financial Group asked for color on tenant credit, which categories are on the watch list, and whether the 75 basis point reserve includes speculative issues.
Answer
CEO Sumit Roy confirmed the 75 bps reserve includes general provisions for macro uncertainty in addition to conservatism on known issues. He stated the credit watch list is approximately 4.8% of rent, up slightly from Q3, reflecting caution around potential external impacts like tariffs on certain retail businesses.