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Realty Income Corporation, known as "The Monthly Dividend Company®," is a real estate investment trust (REIT) that specializes in owning and leasing commercial properties under long-term net lease agreements . These agreements typically require clients to cover property taxes, insurance, and maintenance costs, providing a predictable income stream for the company . Realty Income's portfolio is highly diversified, with properties leased to clients across 90 different industries, including grocery stores, convenience stores, dollar stores, and drug stores, among others . The company operates across the United States, Puerto Rico, the United Kingdom, and several European countries, focusing on diversification by client, industry, geography, and property type to ensure consistent and predictable income for its stockholders .
- Commercial Property Leasing - Owns and leases commercial properties under long-term net lease agreements, requiring clients to cover property taxes, insurance, and maintenance costs.
- Geographic Diversification - Operates properties in the United States, Puerto Rico, the United Kingdom, and several European countries, focusing on reducing geographic concentration risks.
- Industry Diversification - Leases properties to clients across 90 different industries, including grocery stores, convenience stores, dollar stores, and drug stores, to minimize industry-specific risks.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Sumit Roy ExecutiveBoard | President and Chief Executive Officer | Board Member at Ventas, Inc.; Member of Nareit’s Advisory Board of Governors (Second Vice Chair) | Joined Realty Income in 2011; became CEO in October 2018; previously held roles including COO and CIO; extensive experience in real estate and financial strategy. | View Report → |
Gregory J. Whyte Executive | Executive Vice President, Chief Operating Officer | Independent Director at Orion Office REIT, Inc. | Joined Realty Income in January 2023; extensive experience in real estate investment banking and equity research; previously held senior roles at UBS and Morgan Stanley. | |
Jonathan Pong Executive | Executive Vice President, Chief Financial Officer, and Treasurer | None | Joined Realty Income in 2014; became CFO on January 1, 2024; previously led corporate finance functions, including capital markets and investor relations. | |
Mark E. Hagan Executive | Executive Vice President, Chief Investment Officer | None | Joined Realty Income in May 2018; oversees investment strategy, including acquisitions and portfolio management; previously held senior roles in real estate investment banking. | |
Michelle Bushore Executive | Executive Vice President, Chief Legal Officer, General Counsel, and Secretary | None | Joined Realty Income in February 2021; previously held senior legal roles at Caesars Entertainment and Monsanto; extensive experience in corporate law and risk management. | |
Neil M. Abraham Executive | Executive Vice President, Chief Strategy Officer, and President of Realty Income International | None | Joined Realty Income in 2015; oversees strategic initiatives and international expansion; previously served as Chief Investment Officer. | |
Shannon Kehle Executive | Executive Vice President, Chief People Officer | None | Joined Realty Income in April 2014; leads human resources strategy; previously held HR leadership roles in various industries, including clean technology and hospitality. | |
A. Larry Chapman Board | Director | None | Joined Realty Income's board in 2012; retired EVP and Head of Commercial Real Estate at Wells Fargo; extensive experience in real estate finance and governance. | |
Gerardo I. Lopez Board | Director | Director at CBRE Group Inc. and Newell Brands | Joined Realty Income's board in 2018; extensive leadership experience in consumer-focused industries; former CEO of AMC Entertainment and Extended Stay America. | |
Jacqueline Brady Board | Director | Managing Director at PGIM Real Estate; Member of ULI Global Exchange Council; Chair of PREA Publications Committee | Joined Realty Income's board in 2021; extensive experience in global real estate investment management and capital markets; co-founded Canopy Investment Advisors. | |
Mary Hogan Preusse Board | Director | Chair of Digital Realty Trust; Director at Kimco Realty and Host Hotels & Resorts; Senior Advisor at Fifth Wall | Joined Realty Income's board in 2021; recognized for expertise in real estate and ESG; previously Managing Director at APG Asset Management. | |
Priscilla Almodovar Board | Director | CEO and Board Member at Fannie Mae | Joined Realty Income's board in 2021; extensive experience in real estate finance and law; previously CEO of Enterprise Community Partners and Managing Director at JP Morgan Chase. | |
Priya Cherian Huskins Board | Director | Director at NMI Holdings and Long Term Stock Exchange; Advisory Board Member at Stanford Rock Center for Corporate Governance | Joined Realty Income's board in 2007; expert in directors and officers' liability risk and corporate governance; Senior Vice President at Woodruff Sawyer & Co.. | |
Reginald H. Gilyard Board | Director | Chairman of Orion Office REIT; Director at CBRE Group Inc. and First American Financial Corporation | Joined Realty Income's board in 2018; extensive experience in strategy, mergers and acquisitions, and business transformation; former Dean of Chapman University's Argyros School of Business. |
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Given that private arms are becoming bigger players in transactions , how do you plan to maintain your competitive edge in both the U.S. and international markets amidst increasing competition?
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With the creation of your private capital investment platform , how will you address potential conflicts of interest when allocating investment opportunities between the public REIT and the private fund to maximize returns for shareholders?
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You mentioned cap rate compression in your recent acquisitions, with a 4% cap rate in the third quarter ; can you elaborate on how you reconcile lower initial yields with your long-term cost of capital to ensure investments are accretive?
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Considering that you have forward-funded approximately $1.3 billion in fourth quarter investments , and given recent cost of capital volatility , how confident are you in achieving your investment targets without relying on public equity markets?
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Regarding your development pipeline, particularly the non-retail properties that are currently not leased , what is your strategy for leasing these up, and how might this impact your yields and risk profile?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
7-Eleven | Long-term net lease | All | 3.5% of total annualized contractual rent as of 12/31/2024 |
Dollar General | Long-term net lease | All | 3.3% of total annualized contractual rent as of 12/31/2024 |
Walgreens | Long-term net lease | All | 3.3% of total annualized contractual rent as of 12/31/2024 |
Dollar Tree/Family Dollar | Long-term net lease | All | 3.0% of total annualized contractual rent as of 12/31/2024 |
EG Group Limited | Long-term net lease | All | 2.1% of total annualized contractual rent as of 12/31/2024 |
Wynn Resorts | Long-term net lease | All | 2.0% of total annualized contractual rent as of 12/31/2024 |
Lifetime Fitness | Long-term net lease | All | 1.9% of total annualized contractual rent as of 12/31/2024 |
FedEx | Long-term net lease | All | 1.9% of total annualized contractual rent as of 12/31/2024 |
(B&Q) Kingfisher | Long-term net lease | All | 1.6% of total annualized contractual rent as of 12/31/2024 |
BJ's Wholesale Club | Long-term net lease | All | 1.6% of total annualized contractual rent as of 12/31/2024 |
Asda | Long-term net lease | All | 1.5% of total annualized contractual rent as of 12/31/2024 |
Sainsbury's | Long-term net lease | All | 1.5% of total annualized contractual rent as of 12/31/2024 |
CVS Pharmacy | Long-term net lease | All | 1.2% of total annualized contractual rent as of 12/31/2024 |
Tesco | Long-term net lease | All | 1.2% of total annualized contractual rent as of 12/31/2024 |
Tractor Supply | Long-term net lease | All | 1.2% of total annualized contractual rent as of 12/31/2024 |
MGM (Bellagio) | Long-term net lease | All | 1.2% of total annualized contractual rent as of 12/31/2024 |
LA Fitness | Long-term net lease | All | 1.2% of total annualized contractual rent as of 12/31/2024 |
Home Depot | Long-term net lease | All | 1.1% of total annualized contractual rent as of 12/31/2024 |
AMC Theatres | Long-term net lease | All | 1.1% of total annualized contractual rent as of 12/31/2024 |
Walmart / Sam's Club | Long-term net lease | All | 1.0% of total annualized contractual rent as of 12/31/2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Spirit Realty Capital, Inc. | 2024 | Completed on January 23, 2024, the all‑stock merger valued at approximately $6.19 billion involved converting Spirit’s common and preferred shares into Realty Income common and preferred stock, expanding Realty Income’s size, scale, and diversification in net lease transactions. |
Encore Boston Harbor Resort and Casino | 2022 | Acquired for $1.7 billion via a sale‑leaseback transaction with a long‑term, triple net lease (initial 30‑year term with a 30‑year renewal option) that secured a 5.9% initial yield, marking Realty Income’s strategic entry into the gaming industry and adding a prime property near Downtown Boston. |
VEREIT, Inc. | 2021 | Completed on November 1, 2021, this all‑stock acquisition exchanged VEREIT shares for Realty Income shares at a ratio of 0.705, resulting in a 70/30 pro forma ownership split and including a concurrent spin‑off of office assets into Orion Office REIT, with anticipated annual G&A synergies of $45‑$55 million. |
Recent developments and announcements about O.
Earnings
New Earnings (Q4 2024)
·Feb 25, 2025, 10:50 PMView full earnings summary →Realty Income’s Q4 2024 shows modest AFFO/share growth at 1.4% for 2025, pressured by rising non-reimbursed expenses (1.4%-1.7%) and a higher bad debt provision (75 bps). Meanwhile, a $2B share repurchase plan and robust data center/gaming pipeline aim to drive upside.
Press Releases
Press Release
·Feb 12, 2025, 1:49 AMView full press release →Realty Income increases its monthly dividend by 1.5% to $0.268 per share, payable on March 14, 2025, with record date March 3, 2025. This is the 129th dividend increase since listing and the 110th consecutive quarter of increases.