Research Alert: CFRA Keeps Hold Opinion On Shares Of Realty Income Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We decrease our price target by $3 to $67, implying 15.2x our 2026 FFO estimate, a premium to O's three-year average multiple of 13.6x as the outlook for lower borrowing costs and improving yields in the U.K. is likely to support higher FFO growth. We decrease our 2026 FFO estimate by $0.02 to $4.42 and increase 2027 by $0.04 to $4.59. O continued to invest heavily in Europe and the U.K. in Q1, totaling $1.0B of the $2.8B in total investments, while remaining disciplined as management closed on just 9% of the $31B in opportunities it sourced. O has also moved into the private market with strategic partnerships, a $1B JV fund with Apollo, and its $1.7B capital raise for its Perpetual Life U.S. Core+ fund. We believe this increases its TAM and opens the door for larger private fund opportunities. Despite the increased acquisition pace, we note net debt-to-EBITDA at 5.2x leaves room for further large-scale activity this year while total debt carries only a 4.34% blended rate.
