Stifel maintains Buy rating on Realty Income stock with $68 price target

Investing.com - Stifel reiterated its Buy rating on Realty Income (NYSE:O) stock, maintaining its price target of $68.00 per share. The retail REIT giant, with a market capitalization of $53 billion, boasts an impressive 5.5% dividend yield and has maintained dividend payments for 32 consecutive years, according to InvestingPro data.

The research firm made minor adjustments to its adjusted funds from operations (AFFO) estimates for the real estate investment trust, slightly lowering its 2025 AFFO projection to $4.28 from $4.29 and its 2026 estimate to $4.40 from $4.41.

Stifel kept its 2027 AFFO estimate unchanged at $4.52 for the company, which owns and manages commercial properties across the United States.

Realty Income previously provided 2025 AFFO guidance of $4.22-$4.28 with its first quarter results, representing 1.4% growth at the midpoint, and continues to project acquisition volume of approximately $4.0 billion.

Stifel indicated that Realty Income’s guidance figures will likely be raised when the company releases its second quarter results.

In other recent news, Realty Income Corporation has announced a slight increase in its monthly cash dividend to $0.2690 per share, marking the 131st dividend increase since its NYSE listing. This adjustment leads to an annualized dividend amount of $3.228 per share, continuing the company’s streak of 661 consecutive monthly dividend payments. Additionally, Realty Income has priced a dual-tranche €1.3 billion Euro-denominated senior unsecured note offering. The offering includes €650 million in notes due 2031 and another €650 million due 2035, with a blended yield to maturity of 3.693%. The proceeds from this offering are intended to repay a $500 million term loan and a portion of the $2.2 billion outstanding under its credit facility and commercial paper program. Stifel has reiterated its buy rating on Realty Income, citing the attractiveness of the notes. The company also reported a liquidity position of $4.6 billion, which includes cash, unsettled ATM forward equity sales, and available credit facilities. These developments reflect Realty Income’s ongoing strategies for growth and financial management.

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