Could Agree Realty Become the Next Realty Income?
Realty Income (NYSE: O) is the 800-pound gorilla in the net lease sector, with a massive $50 billion market cap. It's four times larger than its next closest competitor, and more than six times the size of fast-growing peer Agree Realty (NYSE: ADC). Should Agree Realty be aiming to take Realty Income's place?
Like Agree Realty, Realty Income is a net lease real estate investment trust (REIT). Net lease properties are generally single tenant assets for which the tenant is responsible for most property-level expenses. While any individual building is a high risk because there's only one tenant, across a large enough portfolio the risk is fairly low. Realty Income owns over 15,400 properties, so individual property risk is also fairly low. Agree owns around 2,250 properties, which is a large portfolio -- just not quite as large as Realty Income's.
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Source Fool.com
