Realty Income Corporation is a REIT that engages in the asset management of commercial properties in the U.S. It has more than 300 commercial tenants from 50 different industries. The REIT’s extensive portfolio comprises of over 6,400 properties in 49 states, Puerto Rico, and the UK. Realty Income’s portfolio of properties can be broadly classified into retail (accounting for ~82% of its 2018 revenue), industrial (12%), office (4%) and agriculture (2%). Its tenants can be grouped into 48 activity segments and 30 other non-reported segments. Approximately 51% of its rental revenue comes from its top 20 tenants (like Walgreens, FedEx, Dollar General, etc.) with investment-grade ratings. Realty Income owns and purchases freestanding, single-tenant properties in key locations that form a deep moat around its business. It also has a high occupancy ratio of more than 98% which indicates the success of its portfolio strategy. Realty Income earns a regular and secure stream of income since its properties have long remaining term lease terms of more than nine years and are characterized by a well-diversified customer base from the non-discretionary service industry.
Investment Data
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