Realty Income (NYSE: O) stock has fallen a bit in 2024, with shares down by 3% for the year as of this writing. Even including dividends, the total return of the real estate investment trust (REIT) is roughly flat.

While there are some legitimate concerns about Realty Income, the business is doing quite well, and it is mostly factors such as interest rates that have put pressure on the stock. Here's a rundown of why Realty Income has underperformed the market and why it could be set for a turnaround.

To be sure, Realty Income isn't alone. REITs in general have been terrible underperformers in 2024. The Vanguard Real Estate ETF (NYSEMKT: VNQ) has produced a total return of just 1% for the year through July 15, which is 18 percentage points below that of the S 500.

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Source Fool.com