This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Amid Triple-Net REIT Craze, Realty Income Corp. Stands Alone

Many companies today (REITs and non-REITs) are hoping to be like Realty Income; however, the well-balanced REIT has become the "gold standard" in the broader net-lease sector. Realty Income owns more than 3,500 stand-alone properties and due to its cost-based advantage, the company has been able to exploit all of the potential cost drivers that allow for greater efficiency in the company's overall value-add proposition.

This company benefits from its low cost of capital, it very experienced management team, its discipline, its history of 19 years of consistent and increased dividends, and its attractive valuation metrics.

With growing demand in REIT-dom, the marketplace is becoming littered with cheap REITs that are trying to be like "The Monthly Dividend Company." Some REITs have already crashed ( TriNet, US Restaurant Properties, CNL) because they had to compromise their balance sheets and underwriting to be competitive. Others are still trying to carve out a niche.

Realty Income has paid dividends every year since going public in 1994, and raised them for 19 years in a row. The company recently raised its monthly dividend by 19% to 18.09 cents a share following the completion of the acquisition on American Realty Capital Trust. This was the highest increase in distributions done by the monthly dividend company. The new annual dividend at the current rate is at $2.171 a share.

Realty Income has a current market cap of $8.90 billion, and the current common share price is $45.90. (The 52-week high was $46.65 on March 5). The company's year-over-year total return is 30.15%, and the current dividend yield is 4.73%.

Source: SNL Financial, FAST Graph.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Brad Thomas is the owner/editor of The Intelligent REIT Investor. Under no circumstances does this information represent a recommendation to buy, sell or hold any security. Thomas is also a licensed real estate agent with Bull Realty in Atlanta, GA. He is Managing Director where he advises individual and institutional investors on a variety of commercial real estate related acquisitions. dispositions, and capital markets transactions.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
WPC $68.00 0.15%
O $51.60 -0.06%
PENN $15.66 2.22%
AAPL $124.43 -1.54%
FB $82.22 -1.18%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs