Core Insights - Realty Income (O) focuses on non-discretionary, low-price-point, service-oriented retail assets, which enhances the resilience and stability of its cash flows [1][2] - Approximately 73% of Realty Income's annualized base rent comes from tenants offering essential goods or services that are less sensitive to economic cycles [1][9] Tenant Stability and Performance - Tenants in non-discretionary segments benefit from consistent foot traffic, leading to a high occupancy rate of 98.5% and a weighted average remaining lease term of 9.1 years [2][9] - Retailers like Dollar General and Family Dollar cater to value-conscious consumers, supporting Realty Income's rent collection and long-term income visibility [3] Operational Efficiency - Realty Income employs a triple net lease structure, which limits operating expense exposure as tenants are responsible for taxes, insurance, and maintenance, resulting in EBITDA margins of approximately 95% [4][9] - This operational efficiency supports consistent dividend growth and attractive risk-adjusted returns [4] Industry Comparisons - Other retail REITs like Kimco Realty Corporation and Regency Centers Corporation also focus on non-discretionary retail tenants, with Kimco achieving 85% of its annual base rent from grocery-anchored properties [5][6] - Regency has over 80% of its portfolio in grocery-anchored centers, benefiting from necessity-driven traffic [7] Market Performance and Valuation - Realty Income's shares have risen 8% year to date, contrasting with a 7.5% decline in the industry [8] - The company trades at a forward 12-month price-to-FFO of 13.26, which is below the industry average, and carries a Value Score of D [10] Earnings Estimates - The Zacks Consensus Estimate for Realty Income's funds from operations (FFO) per share has been revised marginally downward for 2025 and 2026 [11]

Investor Presentation DISCLAIMERS Forward Looking Statements Non‐GAAP Financial Measures This presentation includes reference to Funds From Operations ("FFO"), FFO per share, Adjusted Funds From Operations ("AFFO"), AFFO per share, and Adjusted EBITDA, which are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). These are non-GAAP financial measures and should not be construed as alternatives to net income or as an indicator of operating ...

Financial Data and Key Metrics Changes - The company has $275 billion in assets under management, with 90% deployed in the U.S. [9] - Spreads have widened back up from their lows by approximately 25 to 50 basis points, indicating a stable pricing environment despite market volatility [20][21] - The company reported strong net inflows even during periods of market panic, demonstrating resilience in retail flows [36] Business Line Data and Key Metrics Changes - The company has three established flagship products: Diversified Core Income Product, Technology Income, and O Rent, with a newly launched Alternative Credit Interval Fund [42][44] - O Rent is noted as the fastest-growing product, significantly contributing to net capital raising [49] - The company is focused on expanding its distribution footprint, particularly in underpenetrated markets like Japan [46] Market Data and Key Metrics Changes - The direct lending market is gaining share as the syndicated loan market experiences volatility, with many borrowers preferring the predictability and partnership offered by direct lending [12][19] - The company is seeing a shift in investor behavior, with retail investors viewing alternative products as a safe haven during market volatility [36][38] Company Strategy and Development Direction - The company aims to focus on income-oriented products and has a strategic approach to acquisitions, targeting firms that align with its culture and operational model [91][92] - The company is expanding into digital infrastructure and alternative credit markets, recognizing the growing demand for these sectors [66][80] - The company emphasizes the importance of maintaining a strong partnership with borrowers, offering predictability and privacy in lending [13][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current economic uncertainty and stickier inflation but views it as a favorable environment for their business model focused on downside protection and stability [4][5] - The company does not anticipate material stress in its portfolio, as it primarily lends to large, durable companies in sectors like software and healthcare [10][11] - Management believes that the private equity market is more resilient due to the availability of capital in the private credit market, which supports ongoing M&A activity [30][31] Other Important Information - The company has integrated its capabilities with Coveris Asset Management to enhance its distribution channels and asset management capabilities [83][85] - The company is exploring opportunities in the retirement market, recognizing its potential for growth in the long term [58][60] Q&A Session Summary Question: How is the balance between the syndicated loan market and direct lending tracking? - The company notes that when the syndicated market is active, borrowers may prefer it, but when it closes, they have no choice but to return to private markets, which benefits direct lending [12][19] Question: What is the view on retail flows and redemption trends? - Management reports strong net inflows and a shift in retail investor behavior towards viewing alternative products as a safe haven [36][38] Question: How does the company view the current M&A environment? - While a less active M&A market is a negative, it can also lead to increased market share for direct lending as liquid markets become less favorable [26][29]