Is Realty Income Stock Underperforming the Dow?

Company Overview - Realty Income Corporation (O) is a real estate investment trust (REIT) with a market cap of $54 billion, focusing on freestanding, single-tenant commercial properties under long-term net lease agreements [1] - The company's portfolio is diversified across the U.S. and parts of Europe, covering retail, industrial, and other commercial sectors [1][2] Market Position - Realty Income is classified as a "large-cap stock," emphasizing its size and influence within the REIT-retail industry [2] - The company is recognized for its consistent rental income and stability, earning the nickname "The Monthly Dividend Company" due to its reliable monthly dividend payments over decades [2] Stock Performance - Currently, Realty Income's shares are trading 8.9% below their 52-week high of $64.88, reached on October 21, 2024 [3] - Over the past three months, shares have gained 5.5%, underperforming the Dow Jones Industrial Average's 6.4% rise during the same period [3] - In the longer term, Realty Income has declined 5.3% over the past 52 weeks, while the Dow Jones Industrial Average has increased by 12.8% [4] - Year-to-date, shares of Realty Income are up 10.7%, outperforming the Dow Jones Industrial Average's 7% return [4] Earnings Performance - On August 6, Realty Income reported mixed Q2 earnings results, with an AFFO per share of $1.05, which slightly declined from the prior-year quarter and missed estimates [5] - The company's revenue grew by 5.3% year-over-year to $1.4 billion, exceeding analyst expectations, which may have reassured investors and contributed to a modest increase in share price despite the AFFO shortfall [5] Competitive Analysis - Realty Income has outperformed its rival, NNN REIT, Inc. (NNN), which declined 10.7% over the past 52 weeks and gained 5.3% on a year-to-date basis [6]