Why Realty Income Stock Lost 19% in the First Half of 2020
Shares of real estate investment trust (REIT) Realty Income (NYSE: O) fell a fairly dramatic 19% over the first six months of 2020, according to data from S&P Global Market Intelligence. But that isn't the full picture: At one point in that span, the stock was down a much more troubling 40% or so. While things have clearly gotten better from that point, there are still big issues facing this REIT.
Realty Income is a bellwether name in the net lease space. Net lease REITs are fairly conservative in that they own properties but their tenants are responsible for most of the operating costs of the buildings they occupy. So in some ways, Realty Income is insulated from a lot of the costs associated with adjusting to the coronavirus pandemic. That's the good news.
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Source Fool.com