Realty Income's Quarterly Earnings Preview: What You Need to Know

Based in San Diego, California, Realty Income Corporation (O) is a prominent real estate investment trust (REIT) specializing in single-tenant, retail, and commercial properties. Known for its dependable monthly dividend payments, Realty Income boasts a market cap of $55.9 billion. The company is known for its strategic acquisition approach, robust portfolio, and long-term lease agreements with high-quality tenants. Realty Income is set to release its fiscal Q3 earnings results after the market closes on Friday, Oct. 4.

Ahead of the event, analysts expect the leading retail REIT to report funds from operations (FFO) of $1.05 per share, up 2.9% from $1.02 per share in the year-ago quarter. In the last four quarters, the company has surpassed or matched Wall Street’s bottom-line estimates in three and missed on another occasion. Realty Income's adjusted FFO of $1.06 per share for the last quarter exceeded the consensus estimate marginally. 

For fiscal 2024, analysts expect O to report an FFO of $4.20 per share, up 5% from $4 in fiscal 2023. 

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O stock is up 11.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.5% gains. On the bright side, it has outpaced the Real Estate Select Sector SPDR Fund’s (XLRE) 10.9% returns over the same time frame.

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Shares of Realty Income rose 2.1% after the release of its better-than-expected Q2 earnings on Aug. 5. Its topline and bottom line both exceeded the market’s expectations.

The consensus opinion on O stock is fairly optimistic, with an overall “Moderate Buy” rating. Out of 21 analysts covering the stock, seven advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 13 recommend a "Hold.” 

O's average analyst price target is $64.41, indicating a marginal potential upside of from the current levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.