Realty Income faces risks from fluctuating interest and currency rates, inflation impacting clients and the company, access to capital markets, credit market volatility, client defaults, environmental liabilities, real estate investment illiquidity, natural disasters, impairment of real estate assets, changes in tax laws, and potential limitations on control of joint venture investments. The company's liquidity is dependent on various factors, including cash flow, capital market access, and debt financing. Client bankruptcies and defaults are also significant risks.
Financial Upside
Realty Income's upside potential includes continued dividend increases, investments in diverse properties, and growth strategies. The company's 98.7% occupancy rate and rent recapture rate of 105% suggest strong leasing performance. Acquisitions and property dispositions are expected to enhance portfolio returns. The company's investment grade credit ratings and substantial liquidity provide a foundation for future growth.
