Company Overview - Realty Income is a net lease REIT that owns single-tenant properties and rents them out under contracts that make tenants responsible for most property-level operating costs, providing them effective control of the property [3][5] - The company has a market capitalization of $53 billion, making it the largest player in the net lease REIT space, owning 15,600 properties, with approximately 75% of its rents coming from retail properties [6][7] Investment Strategy - Realty Income's investment strategy includes geographic diversification, with exposure to both North America and Europe, and it is exploring growth avenues such as offering services to institutional investors and providing debt financing to tenants [7][9] - The company has been investing in Europe, where the net lease approach is relatively new, to support long-term growth [9] Dividend Performance - Realty Income has a strong dividend track record, having increased its dividend annually for over 30 years, with a current monthly distribution that offers a 5.4% yield, appealing to income-focused investors [11][13] - The company has a streak of 111 consecutive quarters of dividend increases, making it a reliable source of income [11] Financial Strength - Realty Income benefits from its size, which provides greater access to capital markets and a strong investment-grade-rated balance sheet, allowing it to handle larger transactions that smaller peers may not be able to manage [10]

Group 1 - Realty Income's stock has not recovered from the pandemic as the S&P 500 has, trading down approximately 25% from pre-pandemic highs, presenting an opportunity for income investors [2][5] - Realty Income operates as a net lease REIT, focusing primarily on single-tenant retail properties, with a portfolio of over 15,600 properties, making it the largest competitor in its sector [3][4] - The company has maintained high occupancy levels, not falling below 97.9% in 2020, and has seen improvements since then, despite concerns during the pandemic [5] Group 2 - The primary concern affecting Realty Income's stock is rising interest rates, which complicate the REIT's ability to acquire new properties due to the need for external capital [6][7] - Realty Income's size and investment-grade rated balance sheet provide it with advantageous access to capital markets, mitigating some fears regarding slow growth [7] - The company has a strong history of increasing dividends annually for 30 years, suggesting resilience in various interest rate environments [8] Group 3 - Although dividend growth may slow in the near term due to rising interest costs, Realty Income offers a 5.6% dividend yield, making it an attractive investment for income-focused investors [9]