We purchase commercial real estate for cash leased to tenants that have a good business and operating track record. The leases are typically for 15 to 20 years, which provides us with dependable lease payments each month that are used to support monthly dividend payments to our shareholders.
Learn more about What We Do and What We Own by clicking on each section below.
We own over 3,500 properties, diversified across 46 industries and 195 companies, located throughout 49 states in the US and Puerto Rico.Typical Property Types
Since our tenants tend to provide goods and services that consumers use nearly every day, the majority of our properties fall into, what we generally describe as, retail categories. However, the tenants that generate the most amount of lease revenue for us are distribution centers, health & fitness locations, and theater properties.
The leases with our tenants are usually triple-net leases, which means that besides paying us rent every month, the tenant is responsible for the majority of the property's operating expenses (taxes, maintenance and insurance). This reduces the risk to us of rising property operating expenses and frees up more of the rent to pay monthly dividends.
We generally increase our earnings in two primary ways:
When we became a public company in 1994, we elected to be taxed as a "real estate investment trust" (or REIT, pronounced "reet") because; 1.) our primary assets are the properties that we own, and 2.) and because the REIT tax status provides us with a tax treatment favorable to the payment of dividends.
As long as we meet certain operating metrics and pay out 90% of our taxable income as dividends to shareholders, we pay no federal income tax. This eliminates the "double taxation" of the dividends our shareholders receive.
|Realty Income Video Library|
Watch and learn about
the The Monthly Dividend Company®
|Want to learn More?|
See how we research tenants, analyze credit and make real estate investment decisions.
|Questions & Answers|
How has Realty Income performed as an investment?