Value Portfolio Stock Report: Realty Income Corp.

Realty Income Corp (O) Moves to Sell Watch Consideration List!

160706-Picture2Realty Income Corporation is organized to operate as an equity real estate investment trust.  Their primary business objective is to generate dependable monthly cash distributions from a consistent and predictable level of funds from operations, or FFO per share.  Their monthly distributions are supported by the cash flow from their portfolio of retail properties leased to regional and national retail chains.  They have in-house acquisition, leasing, legal, retail and real estate research, portfolio management and capital markets expertise. Realty Income and its predecessors have been acquiring and owning freestanding retail properties that generate rental revenue under long-term lease agreements (primarily 15 to 20 years).

The stock has reached 135.5% FV which breaches the 130% FV mark for consideration of a sell. Once placed on the Sell Watch list the stock will be monitored for a reversion directional change and moved up to the Sell Consideration List. The sudden rise is most likely the result of S&P creating the new real estate index.

The company is rated an A+ on MAB Sensitivity (Merged Acquired Bought) placing it in the top 5% in terms of probability of such an event occurring. If the stock continues above FV without a reversion directional change we would expect the company to be a buyer using their stock as a currency. It is currently ranked #481 out of the S&P 500 Index®. The company is trading at an all-time high at $71.47/share. It is considered a “Core” stock that exhibits lower price change movement than the market. The dividend is well above market at 4.95%.

160706-Picture1

By | 2016-07-06T10:46:18+00:00 July 6th, 2016|Categories: Money Basics|0 Comments

About the Author:

Leave A Comment