Core Viewpoint - The article discusses the potential for real estate investment trusts (REITs) to attract investors as interest rates decline, comparing two specific REITs: Realty Income and Vici Properties, to determine which is a better investment for the future [1][2]. Group 1: Overview of Realty Income - Realty Income owns over 15,500 commercial properties primarily leased to recession-resistant retailers, maintaining an occupancy rate of 98.7% in 2024 [4]. - The company has a history of paying monthly dividends and has raised its payout 132 times since its IPO [4]. - Realty's adjusted funds from operations (AFFO) per share grew at a compound annual growth rate (CAGR) of 5% from 2019 to 2024, with expectations of a slight increase in AFFO for 2025 [11][12]. Group 2: Overview of Vici Properties - Vici Properties owns 93 casinos and entertainment properties, focusing on long-term leases with major tenants like Caesar's Entertainment and MGM Resorts, achieving a perfect occupancy rate of 100% since its IPO [6][7]. - The company has raised its dividend annually for seven consecutive years and expects its AFFO per share to rise by 4% to 5% in the near future [7][13]. - Vici's AFFO per share grew at a CAGR of 9% from 2019 to 2024, indicating strong performance despite macroeconomic challenges [13]. Group 3: Comparative Analysis - Both Realty and Vici are triple net lease REITs, requiring them to distribute at least 90% of their taxable income as dividends [3]. - Vici is considered a better investment due to its stronger AFFO growth, perfect occupancy rates, lower valuation, and higher dividends compared to Realty [15]. - As interest rates decline, both companies are expected to benefit from cheaper expansion opportunities and milder macroeconomic headwinds for their tenants [14].

Core Viewpoint - Realty Income, a real estate investment trust (REIT), focuses on providing steady dividends while also showcasing growth potential, with total returns exceeding 8,400% since its IPO in 1994 [2] Company Overview - Realty Income specializes in single-tenant commercial properties, owning over 15,600 buildings rented to tenants under net leasing arrangements, which stabilize cash flows as tenants cover maintenance, insurance, and property taxes [4] - The tenant list includes major companies like Home Depot, Dollar Tree, FedEx, and Wynn Resorts, contributing to the company's stability [4] Growth Potential - Despite being down about 25% from its pre-pandemic peak due to higher interest rates, Realty Income has shown consistent growth over its 31-year history [5] - The company estimates a global addressable market of $14 trillion, with its revenue at $5.28 billion over the trailing 12 months, indicating significant growth potential [6] Recent Developments - Realty Income has continued to develop new properties and acquire peers, including the purchase of Spirit Realty, which added over 2,000 properties [7] - The company maintains a high occupancy rate of 98.5%, suggesting that expansion will likely persist even in a high-interest-rate environment [7] Dividend Performance - Realty Income has been distributing monthly dividends since 1994, with annual payouts currently exceeding $3.22 per share, resulting in a dividend yield of 5.8%, significantly higher than the S&P 500's average yield of around 1.3% [8] - The funds from operations (FFO) income for the 12 months ending in Q1 2025 was $4.22, well above dividend obligations, supporting the likelihood of continued payout increases [9] Investment Outlook - Despite challenges from higher interest rates, Realty Income's growth story is expected to continue, supported by its vast addressable market and stable dividend growth [10][11]

Group 1: Prologis Overview - Prologis is the largest REIT in the world with a market cap exceeding $100 billion and over $200 billion in assets under management, owning interests in 5,900 buildings with 1.3 billion square feet of space across 20 countries [1] - Prologis plays a crucial role in supporting global trade and e-commerce through its warehouse properties [1] Group 2: Competitors and Growth Potential - Equinix, with a market cap approaching $85 billion, is the leading data center REIT, operating 270 data centers in 35 countries, and is positioned for significant growth due to increasing demand for data center capacity [4][5] - Realty Income, the seventh largest global REIT with $59 billion in assets, owns over 15,600 properties and has diversified its portfolio across various sectors, including retail, industrial, and gaming [7][8] - Realty Income has a total addressable market opportunity of $14 trillion, having expanded into multiple growth markets, including U.S. industrial, European markets, U.S. casino properties, and U.S. data centers [10] Group 3: Strategic Initiatives - Equinix is expanding its global data center portfolio with 56 major projects underway in 24 countries, indicating strong demand for data centers [6] - Realty Income has been actively acquiring other net lease REITs and investing billions annually to grow its portfolio, including a $3.9 billion investment in property acquisitions last year and a $9.3 billion acquisition of Spirit Realty [9] - Realty Income is launching a private capital investment fund platform to tap into the $18.8 trillion U.S. private real estate market, enhancing its growth potential [11] Group 4: Future Outlook - Prologis has significant growth potential but faces competition from Equinix and Realty Income, which could surpass it in market size within the next decade [12][13]