What are some of the risks of owning Realty Income?

Most of the risks of owning our shares are discussed in the “Risk Factors” section of our Form 10-K. Below, we highlight several key considerations:

  • There is risk that the price you paid for our shares could go down, and you might lose some or all of your original investment
  • There is risk that the growth rate in our dividend may slow, that the dividend may be reduced, or that the dividend may cease to be declared at all
  • There is risk associated with owning real estate that relies on lease payments from our tenants to support dividend payments. The cash flow we generate to pay monthly dividends could be adversely affected by various factors over which we have limited or no control, such as:
    • Lack of demand in areas where our properties are located
    • Inability to retain existing tenants and attract new tenants
    • Oversupply of space and changes in market rental rates
    • Declines in our tenants’ creditworthiness and ability to pay rent, which may be affected by their operations, the current economic situation, and competition within their industries from other operators
    • Defaults by and bankruptcies of tenants, failure of tenants to pay rent on a timely basis, or failure of tenants to comply with their contractual obligations
    • Economic or physical decline of the areas where the properties are located
    • Deterioration of the physical condition of our properties

We encourage investors to maintain a diversified portfolio of investments, understand their level of risk tolerance, and discuss their investment strategy with a qualified financial advisor.