Realty Income

Realty Income Corporation stands as the largest net lease real estate investment trust (REIT) in the world, managing a diversified portfolio of over 15,600 commercial properties across the United States, United Kingdom, and seven other European countries. Founded in 1969 by William and Joan Clark in Escondido, California, the company pioneered the monthly dividend payment model for REITs and has earned the registered trademark 'The Monthly Dividend Company®'—a distinction that reflects its mission to deliver dependable monthly income to investors that increases over time.

With a market capitalization exceeding $50 billion and annual revenue approaching $5 billion in rental income, Realty Income has established itself as a blue-chip income investment vehicle serving over 1,600 commercial tenants across 89 industries. The company's business model centers on triple-net (NNN) lease properties, where tenants assume responsibility for property taxes, insurance, and maintenance, creating a highly passive income stream with minimal landlord obligations. This structure allows Realty Income to focus on strategic capital allocation and portfolio optimization rather than day-to-day property management.

Realty Income's portfolio diversification strategy is unparalleled in the net lease sector. The company maintains that no single tenant represents more than 3.5% of rental income and no industry category exceeds 11% of revenue. Retail properties comprise nearly 80% of the portfolio, with a strategic focus on recession-resistant categories including convenience stores, drug stores, dollar stores, and grocery-anchored shopping centers. Approximately 91% of annualized retail rental revenue derives from tenants with service-oriented, non-discretionary, and low-price-point businesses, while 36% comes from investment-grade rated tenants.

The company's track record speaks to disciplined execution and shareholder commitment. Since its 1994 initial public offering on the NYSE under ticker symbol 'O', Realty Income has declared 661 consecutive monthly dividends and achieved 30 consecutive years of dividend increases, earning membership in the elite S&P 500 Dividend Aristocrats® index—a distinction shared by only three REITs. The company has delivered total returns exceeding 8,400% to investors who purchased at the 1994 IPO when including reinvested dividends. Major strategic milestones include the 2013 acquisition of American Realty Capital Trust (ARCT), the transformative $11 billion VEREIT acquisition in 2021, and most recently the $9.3 billion Spirit Realty Capital merger completed in January 2024, which created a combined enterprise value of approximately $63 billion.