1 Reason I Haven't Bought Realty Income Stock
Realty Income (NYSE: O) is a bellwether name in the net-lease real estate investment trust (REIT) space. It has this stature not just because it is a giant in the industry, but also because it is extremely well-run.
However, a great company isn't always a great investment. That gets to the heart of the problem with Realty Income. Here's a deeper look at the positives, and the one huge negative that might keep you from buying the stock.
As far as real estate investment trusts go, Realty Income is pretty big. To put some numbers on that, it has a $21.5 billion market cap, and owns over 6,500 properties across the United States. It also owns a few in the United Kingdom (which account for less than 2% of rents). Although the net-lease structure means that the company's lessees are responsible for most of the operating costs of the properties they occupy, being large still affords Realty Income some important benefits. For example, it has easy access to capital markets, and it can spread the cost of the home office over more properties.
Source Fool.com
