Realty Income (NYSE: O) is big. In fact, with a market cap of around $40 billion, it is more than twice as large as the next largest net-lease real estate investment trust (REIT) with which it competes. There are good things that come from this size advantage and one very notable negative. Which is why Realty Income's European expansion is so important.

Net leases require tenants to pay most property-level expenses, like taxes, insurance, and maintenance. They are willing to do this to ensure that the property is maintained to their expectations and needs.

But this also changes the relationship with the property owner, which can, to vastly simplify things, sit back and collect rent checks without having to do much work.

Continue reading

Source Fool.com