Where Will Realty Income Be in 5 Years?
Realty Income (NYSE: O) was a large net-lease real estate investment trust (REIT) even before it sealed the transformational deal to acquire peer VEREIT in late 2021. Since that transaction, the company's portfolio has increased from around 11,100 properties to more than 12,200 in February 2023. Basically, the industry juggernaut managed to get even bigger! This is an incredibly important fact to consider as you think about the prospects for this stock over the next five years.
This is going to seem simplistic, but if a REIT has a portfolio of just 100 properties, it only takes 10 new buildings to increase its portfolio size by 10%. That number grows to 100 if the existing portfolio is 1,000 strong. For Realty Income, with over 12,200 properties, the number is a far more daunting 1,220. And yet in 2022 management was able to acquire 1,301 properties for around $9 billion.
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Source Fool.com
