Realty Income Corporation Prepares for Q1 2025 Earnings Release

Realty Income Corporation (O), with a market capitalization of $52.2 billion, is a real estate investment trust (REIT) that acquires and manages freestanding commercial properties. These properties generate rental revenue through long-term net lease agreements. The company, based in San Diego, California, is set to announce its Q1 2025 earnings on Monday, May 5, after the market closes.

Projected Earnings and Analysts’ Expectations

Analysts predict that Realty Income will report an Adjusted Funds from Operations (AFFO) of $0.99 per share for the first quarter, reflecting a decrease of 3.9% from the previous year’s $1.03 per share. Notably, Realty Income has either met or exceeded Wall Street’s estimates for the bottom line in three of the last four quarters, while missing expectations on one occasion.

Fiscal Outlook for 2025 and Beyond

For the fiscal year 2025, analysts anticipate that Realty Income will post an AFFO of $3.97 per share, a decline of 5.3% from the $4.19 reported in fiscal 2024. However, the AFFO is expected to rebound with an 11.1% increase year-over-year, reaching $4.41 per share in fiscal 2026.

Share Performance and Market Comparison

Over the past 52 weeks, Realty Income’s shares have yielded a return of 9.7%, surpassing the S&P 500 Index’s ($SPX) increase of 5.5%. However, O’s performance lagged when compared to the Real Estate Select Sector SPDR Fund (XLRE), which gained 11.8% during the same timeframe.

Recent Financial Results and Dividends

After the release of its Q4 2024 results on February 24, shares of O fell 1.9%. In that quarter, the company reported revenue of $1.3 billion, marking a 24.5% increase year-over-year. The AFFO came in at $1.05 per share, a 4% improvement from the same quarter last year. Additionally, Realty Income increased its monthly dividend by 1.3%, raising it to $3.17 from $3.13 in fiscal 2024.

Analysts’ Ratings and Price Targets

Overall, analysts’ consensus rating for O is moderately optimistic at “Moderate Buy.” Among the 23 analysts covering the stock, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining 17 opt for a “Hold” rating. The average price target stands at $60.84, indicating nearly a 4% premium over current price levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please see the Barchart Disclosure Policy here.

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