Where Will High-Yielding Realty Income Be in 5 Years?
With a $47 billion market cap, Realty Income (NYSE: O) is a giant company relative to its next-closest peer, which is about a quarter of that size. A very real question for investors should be: What can a company that's already the 800-pound gorilla of the industry do from here? The answer is keep growing, and likely rewarding investors with more dividends. Here's why.
Realty Income is the largest net-lease real estate investment trust (REIT). A net lease requires the tenant to pay most property-level operating costs. Usually each property is occupied by just one tenant. While any individual asset is high risk given there's only a single tenant, across a large portfolio the risk is fairly low because net-lease REITs avoid most property-level costs and operating issues. Realty Income has over 15,400 properties, which, like its market cap, makes it the biggest player in the net-lease space.
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Source Fool.com
