Our Business Model

Our confidence in continuing to provide monthly dividends that increase over time is rooted in the quality of our real estate portfolio, which is designed to embody fortress-like strength and resilience.

We focus on acquiring freestanding, single-unit commercial properties leased to high-quality clients under long-term, net lease agreements, typically in excess of 10 years. Triple net leases allow us to reduce exposure to rising costs associated with taxes, maintenance, insurance and other operating expenses to better preserve consistent cash flow for our investors.

We manage our balance sheet conservatively and are committed to maintaining our *#moodys-credit-rating#* and *#sandp-credit-rating#* credit ratings from Moody’s and S&P, respectively. Our credit ratings are a competitive advantage that affords us access to attractively priced debt capital. Further, we believe ample liquidity is key for financial stability and growth. We maintain a *#credit-facility-capacity-without-accordion#* multicurrency unsecured revolving line of credit, allowing us to close on acquisitions quickly and opportunistically raise equity and/or long-term debt when capital market dynamics are most favorable to us. In addition, our *#commercial-paper-program-capacity#* commercial paper program further enhances our financial agility by providing additional access to low-cost, short-term liquidity.

Realty Income is structured as a real estate investment trust, or REIT, which requires us to annually distribute at least 90% of taxable income (excluding net capital gains) in the form of dividends to stockholders.

We employ a growth-focused business model to support increasing monthly dividends and favorable stockholder returns. We aim to expand our platform through the following avenues: 

• Geography - We will continue to expand our platform globally as we believe the scalability of our business model is a competitive advantage.
• Asset & Industry Type - We are committed to continuing to explore new verticals through which the business can sustainably grow.
• Technology, Data & Predictive Analytics - We have access to considerable amounts of proprietary information given the breadth and depth of our portfolio, which helps inform key business and investment decisions.

We aspire to be a sustainability leader in the net lease REIT sector. We are committed to promoting sustainable practices and creating shared value through an innovative approach to our business, which can both improve the company’s overall risk profile as well as create market opportunities.

We believe we all have a shared responsibility to our community and the planet. As a leading company in the REIT industry, we feel we have a role to play in driving positive change, and we are committed to exploring ways to partner with our clients to realize this objective.