Morgan Stanley Lifts Realty Income (O) Price Target on Revised AFFO Outlook

Core Insights - Realty Income Corporation (NYSE:O) is recognized as one of the 12 Best Income Stocks to Buy Now [1] - Morgan Stanley has raised its price target for Realty Income from $62 to $65, maintaining an Equal Weight rating based on revised AFFO per share estimates for 2025 and 2026 [2] Business Model - Realty Income operates by acquiring single-tenant commercial properties and leasing them on a long-term basis through triple-net leases, where tenants are responsible for taxes, insurance, and maintenance, which reduces operating costs and supports steady cash flow [3][7] - The REIT focuses on essential, non-discretionary businesses, which tend to perform well even during economic downturns, and benefits from its scale as one of the largest net lease REITs with an investment-grade-rated balance sheet [4] Geographic Expansion - The company is expanding its presence in Europe, which now constitutes a significant portion of its investment activities, offering higher initial cash yields compared to many U.S. properties, operating in eight European countries including the U.K., Spain, Ireland, and Poland [5] Dividend Performance - Realty Income is known for its strong dividend history, paying monthly dividends and achieving 666 consecutive monthly payments, with 133 dividend increases since its NYSE listing in 1994 and 113 consecutive quarterly increases [6]