# Realty Income (O.US)

Canonical: https://gigainvestors.com/s/O

Analysis as of: 2026-10-16T07:30:49.567Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $55.55 per share; close as of 2026-10-15.

Estimated value: low $44.85 per share, central $55.70 per share, high $64.92 per share. Buy at or below the central value $55.70 per share. Valuation as of 2026-10-16T07:30:49.567Z; scenarios are not confidence intervals.

Expected annual return: 10.0% at the stated quote. About 10.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.48×

- FY2018: 0.48×

- FY2019: 0.50×

- FY2020: 0.48×

- FY2021: 0.46×

- FY2022: 0.39×

- FY2023: 0.42×

- FY2024: 0.44×

- FY2025: 0.28×

- LTM to Jun 2026: 0.29×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 24.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 2.4%

- Typical minus recent gross margin: 24.8 pp

- Typical gross margin (annual median): 93.4%

- Recent gross margin (lower of latest and 3-year median): 68.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: 4.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.3%

- FY2018: 4.3%

- FY2019: 4.1%

- FY2020: 4.0%

- FY2021: 2.4%

- FY2022: 2.9%

- FY2023: 3.2%

- FY2024: 3.6%

- FY2025: 2.4%

- LTM to Jun 2026: 4.6%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.55×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.2B

- Net income, five-year total: $4.0B

- Return on incremental invested capital: 13.4%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 17.5 pp

- Working capital / revenue, final three-year average: 26.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -6.28×

- FY2022: -0.90×

- FY2023: 3.09×

- FY2024: 3.64×

- FY2025: 3.26×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.3% vs 3.2%

- Per-share earnings: 1.16 to 1.17 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 14.1%

- Ordinary dilution, 5-year annual growth: 21.3%

- Market cap gain: $38B

- Cumulative retained earnings: -$8.7B

- Diluted shares, 10-year annual growth: 14.1%

- Diluted shares, 5-year annual growth: 21.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.0%

- Per-share value change: $0.00

- Per-share value, starting three-year median: $1.16

- Per-share value, ending three-year median: $1.17

- Buybacks concentrated in cheaper years (correlation): -0.20

- Average buyback yield: 0.6%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.0B

- Cumulative net income, 10 years: $5.9B

- ROIC, first three-year median: 4.3%

- ROIC, last three-year median: 3.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.20

- FY2017: $1.13

- FY2018: $1.22

- FY2019: $1.38

- FY2020: $1.14

- FY2021: $0.87

- FY2022: $1.42

- FY2023: $1.26

- FY2024: $1.00

- FY2025: $1.17

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.29×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 0.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.77×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.13×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -4.0%

- FY2018: -3.8%

- FY2019: -3.4%

- FY2020: -3.5%

- FY2021: -2.2%

- FY2022: -3.4%

- FY2023: -3.6%

- FY2024: -3.9%

- FY2025: -4.0%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Jul 2022 · "Realty Income (NYSE:O) Reports Earnings Growth in Q1 2025 But Lowers Full-Year Guidance" (finance.yahoo.com, May 2025) · sales +3.2%

Story as of 2026-10-16T09:59:18.419Z; price observation 2026-10-15.

Price needs cash profits to grow 3% a year for ten years

- 2025-05-06: Realty Income (NYSE:O) Reports Earnings Growth in Q1 2025 But Lowers Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/realty-income-nyse-o-reports-175207371.html))

- 2025-08-06: Realty Income raises AFFO forecast on steady property demand ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/realty-income-raises-affo-forecast-222456393.html))

- 2026-04-23: Realty Income’s Apollo Backing Shifts Growth Toward European Net Lease Deals ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/realty-income-apollo-backing-shifts-080520003.html))

### Sales · FY2025–2026

sales +3.2%; source https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm; observed 2026-02-25.

- FY2017: $1.2B 

- FY2018: $1.3B 

- FY2019: $1.5B 

- FY2020: $1.6B 

- FY2021: $2.1B 

- FY2022: $3.3B 

- FY2023: $4.1B 

- FY2024: $5.3B 

- FY2025: $5.7B 

- FY2026: $5.9B 

### Gross margin · FY2026

gross margin 68.6%; source https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm; observed 2026-02-25.

- FY2017: 94.3% 

- FY2018: 95.0% 

- FY2019: 94.0% 

- FY2020: 93.6% 

- FY2021: 93.6% 

- FY2022: 93.2% 

- FY2023: 92.2% 

- FY2024: 92.8% 

- FY2025: 89.8% 

- FY2026: 68.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 5.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm (filed 2026-02-25); FY2025: revenue 5749400000; grossProfit 5162961200; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 89.8% to 92.8% during 2023–25; it earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: grossProfit / revenue = 92.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: grossProfit / revenue = 92.8%.

- Source: https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm (filed 2026-02-25); FY2025: grossProfit / revenue = 89.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); 10-year return on capital observations [[2017,0.04292983338777993],[2018,0.043130347647500275],[2019,0.04109623214522155],[2020,0.040282170798596896],[2021,0.023613159762262314],[2022,0.0286580709361229],[2023,0.03190049917810985],[2024,0.03579197933112206],[2025,0.023861217206094312],[2026,0.04590538667702692]]; median 0.03803707506485948. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 93% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm (filed 2026-02-25); Gross margin observations: [[2021,0.9357811217983689],[2022,0.9323111265697894],[2023,0.9222935660835897]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2016: growth capex 0; upkeep 13426000; owner earnings 752088000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2017: growth capex 0; upkeep 15247000; owner earnings 802339000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2018: growth capex 0; upkeep 25350000; owner earnings 878044000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2020: growth capex 0; upkeep 26773000; cash acquisitions 0; owner earnings 1045751000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2023: growth capex 0; upkeep 68692000; cash acquisitions 0; owner earnings 2698794000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); FY2024: growth capex 0; upkeep 121411000; owner earnings 3135005000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm (filed 2026-02-25); FY2025: growth capex 0; upkeep 131800000; owner earnings 3451000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Dividend observations: [[2016,637596000],[2017,695462000],[2018,761582000],[2019,852134000],[2020,964167000],[2021,1169026000],[2022,1813431000],[2023,2111793000],[2024,2699482000],[2025,2920895000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); O.US SharesStats.PercentInsiders = 0.124 percentage points; cache date 2026-10-16.

### What could break it

"Our success is dependent on the financial stability of our clients." (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm (filed 2026-02-25); Our success is dependent on the financial stability of our clients.

### What the price says

The price assumes cash profits grow 3% yearly over ten years; actual growth was 3.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-25); Ten-year compound average after fade. Initial solved rate 0.030669569746861858. Price 55.55; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.7954556462595583 → FY2025 3.7992632665957675. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $53.72 per share

- 2016-12: $55.70 per share

- 2017-01: $57.78 per share

- 2017-02: $59.38 per share

- 2017-03: $57.68 per share

- 2017-04: $56.54 per share

- 2017-05: $53.23 per share

- 2017-06: $53.47 per share

- 2017-07: $55.29 per share

- 2017-08: $55.78 per share

- 2017-09: $55.42 per share

- 2017-10: $52.01 per share

- 2017-11: $53.59 per share

- 2017-12: $55.25 per share

- 2018-01: $51.54 per share

- 2018-02: $47.66 per share

- 2018-03: $50.13 per share

- 2018-04: $48.94 per share

- 2018-05: $51.65 per share

- 2018-06: $52.12 per share

- 2018-07: $54.04 per share

- 2018-08: $56.75 per share

- 2018-09: $55.13 per share

- 2018-10: $58.40 per share

- 2018-11: $62.10 per share

- 2018-12: $61.09 per share

- 2019-01: $66.56 per share

- 2019-02: $67.02 per share

- 2019-03: $71.28 per share

- 2019-04: $67.84 per share

- 2019-05: $67.91 per share

- 2019-06: $66.83 per share

- 2019-07: $67.06 per share

- 2019-08: $71.52 per share

- 2019-09: $74.30 per share

- 2019-10: $79.25 per share

- 2019-11: $74.25 per share

- 2019-12: $71.35 per share

- 2020-01: $75.98 per share

- 2020-02: $70.15 per share

- 2020-03: $48.31 per share

- 2020-04: $53.22 per share

- 2020-05: $53.59 per share

- 2020-06: $57.66 per share

- 2020-07: $58.19 per share

- 2020-08: $60.11 per share

- 2020-09: $58.87 per share

- 2020-10: $56.07 per share

- 2020-11: $58.11 per share

- 2020-12: $60.24 per share

- 2021-01: $57.23 per share

- 2021-02: $58.39 per share

- 2021-03: $61.53 per share

- 2021-04: $67.01 per share

- 2021-05: $66.28 per share

- 2021-06: $64.67 per share

- 2021-07: $68.11 per share

- 2021-08: $69.98 per share

- 2021-09: $62.85 per share

- 2021-10: $69.22 per share

- 2021-11: $67.92 per share

- 2021-12: $71.59 per share

- 2022-01: $69.41 per share

- 2022-02: $66.09 per share

- 2022-03: $69.30 per share

- 2022-04: $69.36 per share

- 2022-05: $68.22 per share

- 2022-06: $68.26 per share

- 2022-07: $73.99 per share

- 2022-08: $68.28 per share

- 2022-09: $58.20 per share

- 2022-10: $62.27 per share

- 2022-11: $63.07 per share

- 2022-12: $63.43 per share

- 2023-01: $67.83 per share

- 2023-02: $63.95 per share

- 2023-03: $63.32 per share

- 2023-04: $62.84 per share

- 2023-05: $59.44 per share

- 2023-06: $59.79 per share

- 2023-07: $60.97 per share

- 2023-08: $56.04 per share

- 2023-09: $49.94 per share

- 2023-10: $47.38 per share

- 2023-11: $53.96 per share

- 2023-12: $57.42 per share

- 2024-01: $54.39 per share

- 2024-02: $52.11 per share

- 2024-03: $54.10 per share

- 2024-04: $53.54 per share

- 2024-05: $53.06 per share

- 2024-06: $52.82 per share

- 2024-07: $57.43 per share

- 2024-08: $62.11 per share

- 2024-09: $63.42 per share

- 2024-10: $59.37 per share

- 2024-11: $57.89 per share

- 2024-12: $53.41 per share

- 2025-01: $54.64 per share

- 2025-02: $57.03 per share

- 2025-03: $58.01 per share

- 2025-04: $57.86 per share

- 2025-05: $56.62 per share

- 2025-06: $57.61 per share

- 2025-07: $56.13 per share

- 2025-08: $58.76 per share

- 2025-09: $60.79 per share

- 2025-10: $57.98 per share

- 2025-11: $57.61 per share

- 2025-12: $56.37 per share

- 2026-01: $61.16 per share

- 2026-02: $67.00 per share

- 2026-03: $61.18 per share

- 2026-04: $64.24 per share

- 2026-05: $61.28 per share

- 2026-06: $61.96 per share

- 2026-07: $63.87 per share

- 2026-08: $61.28 per share

- 2026-09: $54.30 per share

- 2026-10: $54.99 per share

## Annual estimated value (USD per share)

- FY2016: low $31.16 per share, central $35.46 per share, high $41.18 per share

- FY2017: low $32.05 per share, central $36.46 per share, high $42.35 per share

- FY2018: low $32.30 per share, central $36.76 per share, high $42.69 per share

- FY2019: low $38.24 per share, central $49.06 per share, high $57.32 per share

- FY2020: low $40.93 per share, central $51.96 per share, high $60.35 per share

- FY2021: low $39.92 per share, central $51.57 per share, high $60.21 per share

- FY2024: low $42.88 per share, central $52.36 per share, high $60.98 per share

- FY2025: low $45.16 per share, central $56.10 per share, high $65.41 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:36:33.488Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/726728/000072672826000011/o-20251231.htm); period 2025-12-31, filed 2026-02-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Christopher Davis](https://gigainvestors.com/DAV): 92,720 O shares; USD 5,745,000 reported position value; 0.02% of portfolio; reduce; quarter 2026 Q2.

# O — Realty Income Corp.

Held by 1 investor · USD 5,745,000 total · 2026 Q2 · reported price USD 61.96 (split-adjusted).
Page: https://gigainvestors.com/s/O

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Christopher Davis (https://gigainvestors.com/DAV) | USD 5,745,000 | <0.1% | reduce -2.31% |

## Total held by quarter

- 2025 Q2: USD 2,814,912 · 1 holder · USD 57.60
- 2025 Q3: USD 5,688,728 · 1 holder · USD 60.79
- 2025 Q4: USD 5,151,654 · 1 holder · USD 56.37
- 2026 Q1: USD 5,806,594 · 1 holder · USD 61.18
- 2026 Q2: USD 5,745,000 · 1 holder · USD 61.96