Realty Income: Relatively Overvalued Given Tenant Risks

The designer491 The sell and replace thesis Realty Income Corporation (NYSE:O) has consistently traded at a premium to its peer group based on a perception of superior quality. As more and more tenant issues surface, I think that perception will burst, and it will trade more in-line with its peer group. Realty Income is a good company, but our analysis suggests the premium is not warranted as it has more exposure to troubled tenants than most of its peer set and this will be a drag on AFFO/share growth. Man ...