Is Realty Income a Buy?
There are a lot of things to like about real estate investment trust (REIT) Realty Income (NYSE: O). Usually, valuation isn't one of them. But with the stock down around 20% from its early-2020 highs thanks to the coronavirus pandemic, it is worth taking a deeper dive here to consider if Realty Income is a buy or not today.
With over 6,500 properties, giant Realty Income has become a bellwether in the net-lease space. Net-lease real estate investment trusts own single-tenant properties where the renter is responsible for most of the operating costs. It is generally considered a low-risk approach in the REIT space, with Realty Income making the difference between its rent rates and its cost of capital. And investment-grade-rated Realty Income generally has a low cost of capital, which it locks in with debt and stock sales.
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Source Fool.com
