Can O Stock Keep Climbing After Delivering 11.6% YTD Growth in 2025?

Core Viewpoint - Realty Income (O) has achieved an 11.6% year-to-date gain, leading to discussions about its valuation and whether it is a good time for investment [1][8] Performance Summary - Realty Income has outperformed peers in the free-standing retail space, including Agree Realty Corporation (ADC) and NNN REIT, Inc. (NNN), while also surpassing the broader Zacks REIT and Equity Trust - Retail industry, although it lags behind the S&P 500 composite [1][8] Growth and Expansion - The company is expanding in the U.S. and Europe, which supports its long-term growth outlook, and a recent dividend increase has positively impacted investor sentiment [2][8] - Realty Income owns over 15,600 properties across the U.S. and Europe, with a tenant mix focused on non-discretionary retail and service categories, contributing to stable cash flows [4][10] - The company has a disciplined acquisition strategy, maintaining a historical median occupancy rate of 98.3%, with current occupancy at 98.6% as of June 30, 2025 [5][10] Financial Strength - Realty Income has $5.1 billion in liquidity and maintains investment-grade credit ratings, with a dividend yield of 5.47% [10][18] - The company has increased its dividend for 112 consecutive quarters, with the most recent hike being its 132nd since its 1994 listing [10][18] Valuation Insights - Realty Income's stock is trading at a forward 12-month price-to-FFO of 13.53X, which is below the retail REIT industry average of 15.05X but above its one-year median of 13.15X [15] - The valuation is relatively favorable compared to Agree Realty Corporation, which trades at 15.89X, while NNN trades at 11.91X [15] Investment Outlook - Realty Income is recognized as a leading dividend-focused REIT, valued for its consistent payouts and long-term growth profile, with a diversified tenant base providing resilience during economic uncertainty [17][18] - The company’s strategic expansion in Europe and strong financial position suggest a solid foundation for long-term growth, although new investors may exercise caution until market conditions stabilize [18]