News

Published on 6 Dec 2021 on Zacks via Yahoo Finance

Realty Income's (O) 2021 Investment Pipeline Reaches $6B


Article preview image

Realty Income Corporation O focuses on external growth through exploring accretive acquisition opportunities. Recently, it announced that from Oct 1, 2021, through Dec 1, 2021, the company acquired properties at a purchase price of $1.1 billion.Further, Realty Income has entered into agreements or letters of intent to acquire additional properties with an estimated purchase price of more than $1.1 billion, which are expected to close in the fourth quarter of 2021. Considering the $3.8 billion of acquisitions closed since the beginning of the year through Sep 30, 2021, Realty Income’s 2021 investment pipeline represents roughly $6 billion of volume.However, reflecting broader market concerns, shares of Realty Income have marginally declined during Friday’s trading session.The solid property acquisitions volume at decent investment spreads over the years has aided Realty Income’s performance. Also, the company’s solid underlying real estate quality and prudent underwriting at acquisition have helped the company maintain high occupancy levels consistently. Since 1996, the company’s occupancy level has never been less than 96%. As of Sep 30, 2021, its portfolio occupancy of 98.8% expanded 30 basis points (bps) sequentially and 20 bps year over year.Realty Income announced the closing of the merger with VEREIT on Nov 1. The combined entity is poised to benefit from the enhanced size, scale, diversification and synergies. Also, Realty Income announced the completion of the spin-off of Orion Office REIT Inc. ONL.Realty Income is also committed to improve its balance sheet strength and boost its liquidity. The company raised approximately $1.55 billion in capital from Oct 1, 2021, through Dec 1, 2021. This comprised roughly $950 million in net proceeds from the sale of 13.6 million shares of common stock through its At-The-Market (ATM) program and roughly $595 million through cash distribution to the company from Orion Office REIT in association with the recently completed spin-off of Orion.With the top industries selling essential goods and services, accretive buyouts and a robust balance-sheet position, Realty Income is well poised to grow. The rise in monthly dividend payout is also encouraging. However, store closures and bankruptcies are concerns for the company. While situations are improving, disruptions from the COVID-19 variants might impact the recovery.Shares of the Zacks Rank #3 (Hold) company have gained 3.7% in the fourth quarter compared with the industry’s rally of 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Story continues

Zacks Investment ResearchZacks Investment Research

NYSE.SPG price evolution
NYSE.O price evolution
NYSE.FRT price evolution
NYSE.ONL price evolution

Want to become a better investor?

Start tracking your investments with Statfolio

Sign up for free
Related News
What's in the Cards for STORE Capital (STOR) in Q3 Earnings?

STORE Capital Corporation STOR is set to report third-quarter 2022 earnings on Nov 3 before marke...

Zacks via Yahoo Finance 1 Nov 2022

Store Capital (STOR) Gains But Lags Market: What You Should Know

In the latest trading session, Store Capital (STOR) closed at $31.90, marking a +0.85% move from ...

Zacks via Yahoo Finance 28 Sep 2022

The Zacks Analyst Blog Highlights Nutanix, International Seaways, STORE Capital, Lancaster Colony...

For Immediate Release Chicago, IL – September 26, 2022 – Zacks.com announces the list of stocks f...

Zacks via Yahoo Finance 26 Sep 2022

Buy 6 September Buffett Dividend Dogs And Watch 2 (Of 31)

Analyst top-ten net-gain estimates for Buffett's September dividend dogs ranged 28.01%-58.38%. Cl...

Seeking Alpha 25 Sep 2022

Top 5 Stocks With Double-Digit Returns in the Past Month

Wall Street has been witnessing extreme volatility since the beginning of 2022 barring a two-mont...

Zacks via Yahoo Finance 23 Sep 2022

3 Top Real Estate Stocks to Buy Amid the Housing Market Decline

Home prices are falling, and investors fear a housing recession. Click here for the 3 best real ...

Seeking Alpha 23 Sep 2022

Store Capital (STOR) Gains As Market Dips: What You Should Know

Store Capital (STOR) closed the most recent trading day at $31.72, moving +0.06% from the previou...

Zacks via Yahoo Finance 22 Sep 2022

Store Capital Buyout: Buy Realty Income As A Replacement (NYSE:STOR)

The stock of STORE Capital Corporation (NYSE:STOR) increased by 20% on Thursday as a result of th...

Seeking Alpha 19 Sep 2022

Store Capital (STOR) Stock Moves -0.68%: What You Should Know

Store Capital (STOR) closed at $31.90 in the latest trading session, marking a -0.68% move from t...

Zacks via Yahoo Finance 16 Sep 2022

Store Capital (STOR) Moves 19.9% Higher: Will This Strength Last?

STORE Capital STOR shares soared 19.9% in the last trading session to close at $32.12. The move w...

Zacks via Yahoo Finance 16 Sep 2022