Realty Income Corporation is a REIT that invests in single-tenant standalone properties. It counts large corporations like Walgreens, 7-Eleven, and FedEx among its largest tenants. Realty Income has a presence in the US as well as the UK. In fact, the REIT recently made its first overseas asset purchase, a Sainsbury outlet. REITs, in general, have had a mixed year in terms of performance. Certain REITs like self-storage and warehouse-focused ones have enjoyed a healthy uptrend. On the other hand, commercial real estate REITs with office spaces in places like New York have faced challenges with work-from-home acting as a headwind for the segment. Realty Income is not a conventional commercial real estate play because of its focus on single-tenant properties. It has exposure to a variety of industries which makes it one of the REIT stocks to buy today.
Realty Income Announces Q42020 Earnings Results
In late February 2021, Realty Income announced its fourth-quarter 2020 earnings results. Total revenue was up from $397 million in Q42019 to $418 million. Funds from operations available to unitholders were also up from $280 million in the fourth quarter of 2019 to $293 million. The adjusted funds from operations per share saw a marginal drop from $0.86 to $0.84 on a year-on-year basis. Concerns about the downturn in the theatre industry were downplayed as the segment accounts for only 5.6% of Realty Income’s annual rent. During the fourth quarter, Realty Income announced a dividend increase which was also the 93rd consecutive quarterly increase in dividend payouts. If you are looking to buy REIT stock 2021, then Realty Income would be worth a closer look.
REIT Stocks To Buy Today
Realty Income’s stock has been on an uptrend lately. After closing at $65.67 on 12th April 2021, the stock has gained about 2.75% over the preceding 30 days. The stock isn’t much higher than its price five years ago, but it was trading at a 4.3% dividend yield on 12th April 2021.