Realty Income Is Still Looking For New Ways To Grow (Rating Downgrade)
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REITer's Digest4.35K FollowersFollow5ShareSavePlay(10min)CommentsSummaryRealty Income is rapidly evolving beyond traditional net lease REIT operations, expanding into private capital, private credit, and international assets.O's need to deploy billions quarterly has led to nontraditional deals, including tenant lending and an $800M preferred equity investment in City Center.These strategic shifts introduce long-term risks, diluting portfolio quality and diverging from O's historical disciplined growth model.I assign O a Hold rating, preferring prudent capital recycling over aggressive, large-scale capital deployment.mrdoomits/iStock via Getty Images Today, we circle back to net lease real estate, the bread and butter of REITer's Digest. Over the past several months, I've published a variety of articles discussing net lease real estate from various perspectives. Recently, I published an article on theThis article was written byREITer's Digest4.35K FollowersFollowREITer's DigestAnalyst’s Disclosure:I/we have a beneficial long position in the shares of O either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You