Realty Income Corporation (O) Bundle
A Brief History of Realty Income Corporation (O)
Company Overview
Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) headquartered in San Diego, California.
Financial Performance
| Metric | 2023 Value |
|---|---|
| Market Capitalization | $38.4 billion |
| Total Revenue | $4.25 billion |
| Net Income | $1.12 billion |
| Dividend Yield | 5.7% |
Portfolio Composition
- Total properties: 7,250
- Occupancy rate: 99.1%
- Properties across 49 U.S. states and Puerto Rico
Investment Strategy
Focuses on commercial triple-net lease properties across multiple sectors including:
- Retail
- Industrial
- Convenience stores
- Restaurants
Dividend History
| Year | Total Dividends Paid | Consecutive Dividend Increases |
|---|---|---|
| 2023 | $3.12 per share | 29 consecutive years |
Corporate Structure
Founded in 1969, publicly traded since 1994, S&P 500 and Dividend Aristocrat member.
Who Owns Realty Income Corporation (O)
Institutional Ownership
As of Q4 2023, institutional investors own approximately 88.5% of Realty Income Corporation's outstanding shares.
| Top Institutional Shareholders | Shares Owned | Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 92,618,817 | 10.4% |
| BlackRock Inc. | 63,401,025 | 7.1% |
| State Street Corporation | 38,206,777 | 4.3% |
Insider Ownership
Insider ownership represents approximately 0.3% of total shares.
Mutual Fund Ownership
- Vanguard Total Stock Market Index Fund: 15,124,426 shares
- Vanguard Real Estate Index Fund: 13,694,400 shares
- Fidelity Real Estate Index Fund: 6,243,577 shares
Ownership Distribution
Total shares outstanding: 892,408,000
| Ownership Category | Percentage |
|---|---|
| Institutional Investors | 88.5% |
| Retail Investors | 11.2% |
| Insider Ownership | 0.3% |
Realty Income Corporation (O) Mission Statement
Corporate Overview
Realty Income Corporation (NYSE: O) is a $45.8 billion real estate investment trust as of December 31, 2023, specializing in commercial real estate investments.
Mission Statement Components
- Provide predictable and growing rental income through long-term lease agreements
- Focus on single-tenant commercial properties across diverse industries
- Maintain a geographically diversified real estate portfolio
Portfolio Composition
| Property Category | Number of Properties | Percentage of Portfolio |
|---|---|---|
| Retail | 6,794 | 83% |
| Industrial | 654 | 8% |
| Office | 287 | 4% |
| Other | 475 | 5% |
Financial Performance Metrics
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $4.1 billion |
| Funds from Operations (FFO) | $3.36 billion |
| Dividend Yield | 5.7% |
| Occupancy Rate | 99.2% |
Strategic Investment Approach
- Lease term average: 10.5 years
- Tenants across 85 different industries
- Properties located in 49 U.S. states and Puerto Rico
How Realty Income Corporation (O) Works
Business Model
Realty Income Corporation operates as a real estate investment trust (REIT) focused on commercial properties. As of Q4 2023, the company owns 7,254 commercial properties across the United States.
Property Portfolio Breakdown
| Total Properties | 7,254 |
| Occupancy Rate | 99.1% |
| Lease Term | Average 10.5 years |
| Tenants | Over 1,100 commercial clients |
Financial Performance
Financial metrics for Realty Income Corporation as of December 31, 2023:
- Market Capitalization: $44.7 billion
- Total Revenue: $4.06 billion
- Net Income: $1.42 billion
- Dividend Yield: 5.6%
Tenant Industry Diversification
| Retail | 48% |
| Industrial | 22% |
| Agricultural | 12% |
| Office | 8% |
| Other | 10% |
Investment Strategy
Triple-net lease model where tenants cover property expenses including taxes, insurance, and maintenance.
Geographic Distribution
| United States | 99.5% |
| United Kingdom | 0.5% |
Stock Performance
- NYSE Ticker: O
- 52-Week Stock Price Range: $52.37 - $76.14
- Current Stock Price (as of January 2024): $63.45
How Realty Income Corporation (O) Makes Money
Business Model Overview
Realty Income Corporation generates revenue through commercial real estate leasing. As of January 2024, the company owns 15,525 commercial properties across the United States and United Kingdom.
Revenue Streams
Primary revenue sources include:
- Rental income from commercial properties
- Long-term net lease agreements
- Diversified tenant portfolio
Financial Performance
| Metric | 2023 Value |
|---|---|
| Total Revenue | $3.57 billion |
| Net Income | $982.4 million |
| Funds from Operations (FFO) | $1.41 billion |
| Dividend Yield | 5.7% |
Tenant Composition
| Industry Sector | Percentage of Portfolio |
|---|---|
| Retail | 83.4% |
| Industrial | 9.5% |
| Office | 4.6% |
| Other | 2.5% |
Property Acquisition Strategy
Investment Criteria:
- Long-term leases (typically 10-20 years)
- Contractual rent escalations
- High-quality, freestanding properties
- Tenants with stable cash flows
Geographic Distribution
| Region | Percentage of Properties |
|---|---|
| United States | 98.5% |
| United Kingdom | 1.5% |
Lease Characteristics
Key Lease Details:
- Average lease term: 14.1 years
- Contractual rent increases: 1.8% annually
- Occupancy rate: 99.2%
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