REIT Report Card · August 15, 2026
Realty Income is the net-lease name most people already know: $59.4B of equity, about $323 million a day, a 5.18% indicated yield. The 16.8x EV / EBITDA multiple is not cheap, and 5.74x Net Debt / EBITDA is not light.
| Category | Grade | What It Means |
|---|---|---|
| Liquidity | A | Plenty of daily volume |
| Balance Sheet | B | A lot of debt. Worth keeping an eye on |
| Debt Service | B+ | Interest is covered, without a huge cushion |
| Operating Quality | A+ | Outstanding profit margins on this measure |
| Cash Generation | A- | Good cash generation versus the current price |
| Dividend | B+ | Useful income, and coverage looks okay |
| Valuation | B+ | A moderate price. Not a bargain |
| Recent Performance | A- | A solid year for the share price |
| Overall | A- | Net-lease income with more leverage than the lightest names |
1. Valuation
EV / EBITDA asks what the whole firm costs per dollar of trailing EBITDA.
At about 16.8x EV / EBITDA, O screens cheaper than a lot of large REITs.
Bottom line: A lower multiple can cushion a miss, or it can mean the market already sees a problem. Read the rest of the card.
2. Leverage
For every $1 of annual EBITDA O generates, it has about $5.74 of net debt.
For a REIT, this is usually the first leverage number worth reading.
Bottom line: O uses a fair amount of debt, but the load looks manageable relative to earnings.
3. Debt Exposure
About 34% of O's total enterprise value is net debt.
That gives equity investors a thinner equity cushion than lower-debt peers.
Bottom line: A large net-debt share of EV means equity holders have less of a cushion.
4. Interest Protection
O generates about 4.51x of EBITDA for every $1 of estimated interest.
Higher coverage usually means a REIT can absorb higher rates, refinancing costs, or a soft patch in the properties more easily.
Bottom line: Coverage is okay, but there's less spare room than at the strongest credits here.
5. Operating Profitability
O turns about 88 cents of every revenue dollar into EBITDA.
Bottom line: The properties and the platform make a lot of money on this measure.
6. Cash Generation
O generated operating cash flow equal to about 7.0% of its current equity value.
For every $100 of current equity value, the company generated about $7.03 of trailing operating cash flow.
Bottom line: You're getting a lot of cash relative to the price you're paying.
7. Cash Conversion
About 78% of O's EBITDA turned into operating cash flow.
Bottom line: Most of the reported operating earnings are showing up as actual cash.
8. Dividend Safety
On our standardized math, operating cash flow covers O's annualized dividend about 1.36x.
O generates roughly 1.36x of operating cash flow for every $1.00 of estimated dividends.
Bottom line: The dividend looks covered by operating cash flow, though the margin isn't huge under this conservative method.
9. Dividend Yield
O screens more as an income REIT.
Put $10,000 into O at the current indicated yield and you'd get about $518 a year if the dividend stays the same.
Bottom line: You can treat O as an income holding if you also accept the coverage and sector risks that come with it.
10. Market Liquidity
About $323 million of O stock changes hands on an average trading day.
Bottom line: Daily volume of about $323 million is active for an equity REIT.
If you put $10,000 into O today, based on the numbers in this report:
O has $31.33B of total debt against $0.57B of cash (5.74x net debt / EBITDA). Interest coverage of 4.5x does not fully cancel that load.
At 16.8x EV / EBITDA, this is a middle-of-the-range price versus the other names here.
OCF dividend coverage is 1.36x and the indicated yield is 5.18%. The dividend looks supported, but the margin isn't huge, and capex definitions still matter.
Average daily dollar volume is $322.9M, active enough for most individual-sized trades.
Realty Income still pays you 5.18%. Under that yield sits 5.74x of net debt / EBITDA, on a net-lease machine a lot of people treat as a savings account.
The 88.3% EBITDA margin is the operating number people like on this name. CapEx at 147.5% of OCF is why cash-after-capex screens go negative anyway.
A 5.2% yield sitting on 16.8x EV / EBITDA and 5.74x net debt / EBITDA. The income can do more of the work than it does at the growth names, as long as you can live with the leverage.
| Metric | O |
|---|---|
| Market Capitalization | $59.35B |
| Enterprise Value | $90.11B |
| Share Price | $62.74 |
| Revenue (TTM) | $6.07B |
| EBITDA (TTM) | $5.36B |
| EBIT (TTM) | $2.79B |
| Operating Cash Flow (TTM) | $4.17B |
| CapEx (TTM) | $6.15B |
| Cash | $0.57B |
| Total Debt | $31.33B |
| Average Daily $ Volume | $322.9M |
| Daily Equity Turnover | 0.54% |
| EV / EBITDA | 16.81x |
| EBITDA Yield on EV | 5.95% |
| EBITDA Margin | 88.30% |
| Net Debt / EBITDA | 5.74x |
| Net Debt / Market Cap | 51.83% |
| Net Debt / Enterprise Value | 34.14% |
| Debt / Total Capital | 34.55% |
| Cash / Debt | 1.82% |
| EV Premium to Equity | 51.83% |
| Operating Cash Flow Yield | 7.03% |
| OCF / EBITDA Conversion | 77.80% |
| CapEx / Operating Cash Flow | 147.48% |
| CapEx / Revenue | 101.32% |
| Post-CapEx Cash Yield | -3.34% |
| Dividend / OCF Burden | 0.74x |
| OCF Dividend Coverage | 1.36x |
| Implied Interest / Revenue | 19.56% |
| EBITDA Interest Coverage | 4.51x |
| Reported Interest Coverage (source) | 2.35x |
| Dividend Yield | 5.18% |
| 52-Week Price Change | +8.38% |
| Approx. 1-Year Total Carry | +13.56% |
| Beta (5Y) | 0.72 |
We grade each REIT on several things at once. A cheap multiple next to heavy debt is a different story than a cheap multiple next to a light load.
Financial Strength looks at leverage, how much of the firm is debt, daily trading volume, and whether earnings cover interest.
Operating Quality looks at the EBITDA margin and how much of those earnings show up as cash.
Dividend Quality looks at the indicated yield, whether operating cash flow covers the payout, and how heavy the payout is versus cash.
Valuation is what you pay for the REIT's earnings: enterprise value over EBITDA.
Market Performance looks at last year's share-price change and how much stock trades on an ordinary day.
A hotel and a net-lease REIT will not look the same on these measures, and they should not. Read each name next to peers in the same property type.
Read the full methodology and the grading bands.
The numbers come from trailing financials and market data we pulled for this report. Some ratios we calculate ourselves. They are not always the figures the company highlights.
We use them so these 20 REITs can be lined up on the same math. That does not replace company-reported FFO, AFFO, same-store NOI, occupancy, lease schedules, or NAV.
Source: https://stockanalysis.com/stocks/o/statistics/
Report date: August 15, 2026
This is for information only. It isn't investment advice, a buy or sell recommendation, or a judgment about whether any of these REITs fit your situation.