CluenexRealty Income O
Realty Income scores average on business quality (5.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Realty Income does
Realty Income owns and leases commercial real estate to retail tenants on long-term net lease terms, collecting rent from thousands of client locations across the US and Europe. The business relies on continuous portfolio expansion funded by debt and equity issuance to grow cash flows.
- What it does best
Realty Income delivers top-decile gross margins of 93%, vastly outperforming peers like KIM at 69%. This high margin stems from net-lease structures where tenants absorb property taxes, maintenance, and insurance directly.
- The main risk
An interest coverage ratio of 2.4x leaves little cushion as debt grows toward $28.8 billion, making external capital access critical to fund ongoing operations and its massive $3.0 billion dividend obligation.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at a solid 46.6% in the top quartile of its sector, yet high capital intensity drives negative free cash flow, showing profitability fails to convert directly into unencumbered cash.
A gross margin sector percentile of 91 shows elite pricing power anchored in long-term triple-net leases that lock in enterprise tenants for decades, though modest ROE of 3.2% limits compounding speed.
Revenue grew 9.1% to $6.1 billion, continuing an upward multi-year expansion trend visible in history annual summary as the company aggressively acquires new retail properties.
Total debt sits at $28.8 billion against just $435 million in cash, while free cash flow stands at negative $2.0 billion due to heavy capital outlays, keeping the balance sheet under pressure.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $209K outside pre-planned sales.
Our sealed record on O
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Realty Income scores average on the Cluenex quality check (5.9 of 10), measured against its own industry. Profitability is fair, moat fair, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 sold $209K outside pre-planned sales.
Nov 2, 2026, after the close.
See O today
- Today's verdict on O, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Realty Income (O)”, https://cluenex.com/stocks/o/, data as of Oct 10, 2026.