Shares of the real estate investment trust (REIT) Realty Income (O -2.77%) slipped about 2.8% as of 11:44 a.m. ET after the company reported its fourth-quarter earnings results.
Realty Income reported adjusted funds from operations (AFFO) of $1.05, in line with consensus Wall Street analyst estimates on FactSet. REITs are a bit different from most companies because they buy and invest in real estate and must pay out at least 90% of their taxable income in dividends to obtain REIT status, which comes with certain tax advantages. AFFO measures cash generated by a business and is a key metric followed by REIT investors. Revenue at Realty Income of $1.34 billion beat consensus estimates.
However, management guided for AFFO to come in between $4.22 and $4.28 in 2025, falling short of the $4.30 average estimate by Wall Street analysts. During the quarter, Realty increased its quarterly dividend for the 109th straight time. Monthly dividends will increase 2.5% to $3.126. Realty's dividend yield is now at a whopping 5.78%.
Despite the miss on guidance, I still like Realty Income's strategy of investing in real estate leased to clients mainly in non-discretionary, low-price, service-oriented, and non-retail businesses like Home Depot, BJ's, and FedEx, just to name a few. The company is also seeing opportunities in the growing data center and gaming markets. While management executes its strategy, investors can sit back and enjoy a strong and growing dividend.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。