2024-07-12 10:07:19 ET
Summary
- Realty Income stock has underperformed by a wide margin as of late, creating an opportunity.
- The company has seen fewer headwinds from higher interest rates than peers due to maintaining a more conservative balance sheet.
- Despite potential risks from troubled tenants like Red Lobster and Walgreens, Realty Income's strong balance sheet and resilient revenue streams make it a compelling investment opportunity.
I have been cautious on real estate investment trusts, or REITs, in general over the past two years following the 2022 crash in tech stocks. That setup made it appear likely that tech stocks would offer a greater source of alpha (and REITs a greater chance of underperformance). With tech stocks recovering their losses and continuing to soar, it is time to take another look at REITs....
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For further details see:
Realty Income: Why This Growth Investor Is Coming Back To The Name (Rating Upgrade)