Rakuten Investment Management Inc. Grows Position in Realty Income Corporation $O

Rakuten Investment Management Inc. raised its stake in shares of Realty Income Corporation (NYSE:O) by 11.7% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 152,517 shares of the real estate investment trust’s stock after purchasing an additional 15,993 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Realty Income were worth $9,615,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Realty Income during the second quarter valued at $6,997,219,000. Legal & General Group Plc acquired a new position in shares of Realty Income in the 2nd quarter valued at $643,334,000. Norges Bank acquired a new position in shares of Realty Income in the 4th quarter valued at $558,775,000. Bank of New York Mellon Corp purchased a new position in Realty Income in the 2nd quarter worth $340,180,000. Finally, Hsbc Holdings PLC purchased a new position in Realty Income in the 2nd quarter worth $319,222,000. Hedge funds and other institutional investors own 70.81% of the company’s stock.

Key Realty Income News

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Falling bond yields could improve the appeal of Realty Income’s dividend yield relative to fixed-income alternatives. The company’s diversified net-lease portfolio and monthly distributions make it a potential beneficiary of renewed REIT demand. Could Falling Yields Make REIT Stocks Worth a Second Look?
• Positive Sentiment: Realty Income’s rising adjusted funds from operations, high occupancy and expansion into data centers are cited as support for continued dividend durability, even though payout growth is measured. Realty Income’s Dividend Growth Stays Durable: Should You Buy or Hold?
• Positive Sentiment: Several income-focused articles continue to present Realty Income as a dependable monthly dividend payer and a high-quality REIT for long-term investors, potentially supporting demand from retirees and yield-oriented shareholders. Realty Income: The Best REIT To Own
• Positive Sentiment: Options-writing strategies may offer investors a way to enhance income from Realty Income shares, although this is an investment approach rather than a change to the company’s fundamentals. Realty Income: Long-Term Income Name ‘Enhanced’ Via Options Writing
• Neutral Sentiment: Realty Income’s ordinary-income distributions can create a relatively high tax burden in taxable accounts, making the stock potentially more attractive in tax-advantaged accounts such as Roth IRAs. These 5 Dividend Stocks Lose the Most to Taxes Outside a Roth
• Negative Sentiment: Critics argue that Realty Income’s acquisitions and broader business expansion have not accelerated growth enough, while Lamar Advertising is viewed as having stronger acquisition execution. Lamar’s Acquisition Prowess Outshines Realty Income
• Negative Sentiment: Other commentary suggests investors may find better five-year total-return potential in VICI Properties, increasing competitive pressure on Realty Income among high-yield REITs. Prediction: This High-Yield Dividend Stock Will Outperform Realty Income Over the Next 5 Years

Realty Income Trading Up 0.4%

NYSE O opened at $62.03 on Friday. The company has a market capitalization of $58.69 billion, a PE ratio of 45.28, a P/E/G ratio of 4.40 and a beta of 0.71. The company has a fifty day moving average of $63.31 and a 200 day moving average of $63.16. Realty Income Corporation has a 1 year low of $55.86 and a 1 year high of $67.93. The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88.

Realty Income (NYSE:O) last posted its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, meeting the consensus estimate of $1.09. The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.40 billion. Realty Income had a net margin of 20.93% and a return on equity of 3.12%. The firm’s revenue was up 9.7% on a year-over-year basis. During the same period in the prior year, the company earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. Research analysts forecast that Realty Income Corporation will post 4.43 earnings per share for the current year.

Realty Income Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be paid a $0.271 dividend. The ex-dividend date is Monday, August 31st. This represents a c) dividend on an annualized basis and a dividend yield of 5.2%. Realty Income’s dividend payout ratio is presently 237.23%.

Analyst Ratings Changes

O has been the topic of several research analyst reports. Mizuho dropped their price target on Realty Income from $68.00 to $66.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 13th. Evercore set a $68.00 price objective on Realty Income in a research note on Friday, August 7th. Huntington began coverage on Realty Income in a research note on Wednesday, July 15th. They issued an “outperform” rating and a $70.00 price objective for the company. Weiss Ratings raised Realty Income from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, August 20th. Finally, Robert W. Baird upped their target price on Realty Income from $64.00 to $65.00 and gave the company a “neutral” rating in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $67.42.

About Realty Income

Realty Income Corporation (NYSE: O) is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company’s business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income’s portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.