Realty Income Corp and its results.

We're all familiar with this king of monthly dividend payouts, I'm sure, but for new readers. Realty Income Corporation is a real estate company based in San Diego, California, USA. The company specializes in the purchase, ownership and leasing of real estate and is one of the largest owners of investment properties in the US and a smaller share in the UK. Its portfolio consists of over 6,500 properties in 49 US states and Puerto Rico. It provides services mainly in the leasing of commercial properties such as department stores, supermarket and bank branches. The company focuses on stable and long-term leases with high rates of return and regular dividends for its shareholders.

• Realty Income Corp (O) reported net income of $76.2 million for the first quarter of 2023, down from net income of $109.3 million for the same period in 2022.
• The company reported operating income of $474.9 million for the first quarter of 2023, an increase from the same period in 2022, when operating income was $458.6 million.
• It also reported funds from operations (FFO) of $0.79 per share for the first quarter of 2023. This represents a decrease from the same period in 2022, when FFO was $0.83 per share. This FFO result is below analysts' expectations, who were projecting FFO of $0.81 per share.
• And it added news that it entered into 91 new leases in the first quarter of 2023, with total annual borrowings of $410 million.

So when we summarize their report with the results for the first quarter of 2023 They showed that the company recorded lower than expected earnings. According to the report, the company achieved Funds from Operations (FFO), a key performance indicator for real estate companies, of 79 cents per share. This result marks a lower performance than the 82 cents per share that analysts had predicted. Finally, they also announced plans to enter the European market through the acquisition of a British real estate company. This acquisition would allow the company to expand its real estate portfolio abroad and enter new markets.

The company's MD, Sumit Roy, commented on the results saying: "We are pleased with how we have started 2023 with solid growth in total revenues and dividends. We remain firmly committed to our strategy of long-term growth and maintaining the dividend payout on a monthly basis to our shareholders."

My view. I have the company in my portfolio, not for the most part, as I don't see it as a growth company, nor is it expected to be. However, I think it is stable with an even more stable dividend payout. The monthly dividend is nice, but of course one has to factor in that to make it worth anything anymore, one has to have more capital to invest. I like their acquisition, which of course will gobble up funds, but will open up new market potential in the future. In general, companies of this type of REIT can be considered stable and predictable. However, even here you have to take into account certain risks, which I will highlight at the end, but there are risks in everything and it depends on how everyone evaluates them for themselves.

Economic cycles: If there is, for example, a recession or an economic crisis, this can be reflected in lower demand for rental properties and lower rents. This can lead to a reduction in company revenues.

Risk of credit losses: they also rely on loans to finance their investments. If the investment fails and the company is unable to repay its debts, credit losses may occur.

Changes in the law: changes in tax and regulatory rules may affect REITs. For example, a reduction in tax benefits for REITs may make this type of investment less attractive to investors.

Competition: If the market becomes oversaturated or if other companies offer better lease terms, this may affect a company's returns.

WARNING: I am not a financial advisor, and this material does not serve as a financial or investment recommendation. The content of this material is purely informational.