Realty Income (NYSE: O) is the largest net lease REIT and one of the most highly rated, with investment grade ratings of A‑ from S&P, A3 from Moody’s, and A from Fitch. It owns more than 15,500 single-tenant and other commercial properties in the United States, the United Kingdom, and eight other European countries, and is known for paying dividends monthly. This page covers its credit ratings, portfolio, dividend record, and how owning its shares compares with owning net lease property directly. It is part of the InvestmentGrade.com REIT series.
Realty Income at a Glance
| Measure | As of June 30, 2026 |
|---|---|
| Properties | 15,588 (97.6% single-tenant) |
| Clients and industries | 1,798 clients in 92 industries |
| Occupancy (by property count) | 98.8% |
| Weighted average remaining lease term | About 8.6 years |
| Annualized base rent | $5.28 billion |
| Share of rent from investment grade clients | 34.3% |
| Credit ratings | S&P A‑ (stable), Moody’s A3 (stable), Fitch A (stable, assigned August 3, 2026) |
| Monthly dividend | $0.2710 per share (paid July 2026), $3.252 annualized |
Source: Realty Income Form 10-Q for the quarter ended June 30, 2026, filed August 6, 2026. The dividend yield depends on the share price, so check a current quote.
Realty Income Credit Rating
Realty Income’s senior unsecured debt is rated in the single-A range by all three major agencies:
| Agency | Rating | Outlook | Notches above the investment grade floor |
|---|---|---|---|
| S&P Global Ratings | A‑ | Stable | 3 above BBB‑ |
| Moody’s | A3 | Stable | 3 above Baa3 |
| Fitch Ratings | A | Stable | 4 above BBB‑ |
Source: Realty Income Form 10-Q for the quarter ended June 30, 2026. Fitch assigned its rating on August 3, 2026.
For comparison, Agree Realty is rated BBB+ by S&P and Baa1 by Moody’s, and Broadstone Net Lease BBB and Baa2, according to their second-quarter 2026 filings. The rating applies to Realty Income as a borrower; it is not a rating of its tenants. Realty Income’s strengths for the agencies include its scale, diversification across thousands of properties and clients, and long access to the capital markets.
What Realty Income Owns
Realty Income is an investment grade rated REIT whose diversified portfolio includes investment grade, speculative grade, and unrated tenants. As of June 30, 2026, 34.3% of its annualized base rent came from clients rated investment grade, or their subsidiaries or affiliates. Its top 20 clients produced 34.8% of rent, and 13 of them were rated investment grade or affiliated with investment grade companies.
| Property type | Properties | Share of annualized base rent |
|---|---|---|
| Retail | 14,913 | 78.3% |
| Industrial | 604 | 16.2% |
| Gaming | 2 | 3.1% |
| Other (including agriculture and office) | 69 | 2.4% |
Largest industries by rent: grocery 11.1%, convenience stores 9.4%, home improvement 6.4%, dollar stores 6.0%, quick-service restaurants 4.8%, automotive service 4.2%, health and fitness 4.2%, drug stores 4.1%, general merchandise 3.7%, casual dining 3.6%, and gaming 3.1%.
| Largest clients | Leases | Share of annualized base rent |
|---|---|---|
| Dollar General | 1,855 | 3.3% |
| 7-Eleven | 802 | 3.1% |
| Walgreens | 391 | 3.0% |
| Family Dollar | 1,253 | 2.6% |
| Life Time Group | 43 | 2.1% |
| Kingfisher (B&Q) | 72 | 2.0% |
| Wynn Resorts | 1 | 2.0% |
| EG Group | 414 | 2.0% |
| Asda | 41 | 1.6% |
| Sainsbury’s | 42 | 1.6% |
Source: Realty Income Form 10-Q for the quarter ended June 30, 2026. Shares are of total portfolio annualized base rent.
Gaming: the two gaming assets are Encore Boston Harbor, leased to Wynn Resorts, and an interest in the joint venture that owns the Bellagio Las Vegas, leased to MGM Resorts, in which Blackstone Real Estate Income Trust is the other investor. Realty Income does not have a gaming partnership with VICI Properties.
Dividend Record
Realty Income calls itself “The Monthly Dividend Company.” According to its second-quarter 2026 report:
- It has paid monthly dividends throughout its 57-year history and has declared 673 consecutive monthly dividends since its founding in 1969.
- It has increased the dividend 135 times since its 1994 NYSE listing, including 115 consecutive quarterly increases as of August 2026.
- It is a member of the S&P 500 Dividend Aristocrats index, having increased its dividend for more than 31 consecutive years.
Dividends are not guaranteed, and REIT dividends are generally taxed as ordinary income, though many qualify for the 20% qualified business income deduction under current law.
Realty Income vs. NNN REIT
| Factor | Realty Income (O) | NNN REIT (NNN) |
|---|---|---|
| Properties (June 30, 2026) | 15,588 | 3,774 |
| Geography | U.S., U.K., and eight other European countries | U.S. (all 50 states, D.C., and Puerto Rico) |
| Weighted average remaining lease term | About 8.6 years | 10.1 years |
| Occupancy | 98.8% (by property count) | 99.1% of properties leased |
| Dividend frequency | Monthly | Quarterly |
| Dividend growth record | Increased for more than 31 consecutive years | Annual dividend increased for 36 consecutive years (through 2025) |
Sources: each company’s Form 10-Q for the quarter ended June 30, 2026; NNN REIT Form 10-K for 2025 for its dividend record.
Realty Income offers more scale, international diversification, and monthly payments; NNN REIT is a U.S.-only portfolio with a longer remaining lease term and a longer dividend growth record. Both are investment grade borrowers.
Owning Realty Income Shares vs. Owning NNN Property Directly
REIT shares and directly owned net lease property draw on the same kind of real estate, but they are different investments:
| Factor | Realty Income shares | Directly owned NNN property |
|---|---|---|
| Minimum investment | The price of one share | Usually $1 million or more for a single property |
| Liquidity | Trades daily on the NYSE | Weeks to months to sell |
| Diversification | Thousands of properties and clients | Usually one tenant per property |
| Tenant credit | Mix of investment grade, speculative grade, and unrated tenants | Whatever the specific lease’s tenant and guarantor are |
| Depreciation | Taken at the REIT level; shareholders do not deduct it directly | Owner deducts depreciation; cost segregation may accelerate it |
| 1031 exchange | Shares do not qualify as replacement property | Qualifies as like-kind real property |
| Leverage | Set by the REIT | Owner chooses the financing |
| Price behavior | Moves with the stock market and interest rates | Not priced daily; values change with rates and the property |
| Estate planning | Inherited shares generally receive a basis adjustment to value at death | Inherited real estate generally receives the same basis adjustment, subject to applicable tax rules |
For investors completing a 1031 exchange, direct property is the route that preserves the deferral, because REIT shares are securities. For smaller amounts, or investors who want daily liquidity and broad diversification, REIT shares can be a simpler way to own net lease real estate. A tax advisor can help weigh depreciation, exchange plans, and estate considerations.
Risks to Consider
- Interest rates. REIT share prices often fall when long-term rates rise, and higher borrowing costs narrow the spread between acquisition cap rates and Realty Income’s cost of capital.
- Tenant credit. About two-thirds of rent comes from clients that are not rated investment grade, and several large clients, such as Walgreens and Family Dollar, have been closing stores or restructuring.
- Growth through acquisitions. As a very large REIT, Realty Income must invest billions each year to grow per-share results.
- Currency and international exposure from its U.K. and European properties.
Frequently Asked Questions
Is Realty Income investment grade?
Yes. As of its second-quarter 2026 report, Realty Income was rated A‑ (stable) by S&P, A3 (stable) by Moody’s, and A (stable) by Fitch, which assigned its rating on August 3, 2026.
Are all of Realty Income’s tenants investment grade?
No. The REIT’s own rating is investment grade, but as of June 30, 2026 only 34.3% of its annualized base rent came from investment grade rated clients or their affiliates. The rest comes from speculative grade and unrated tenants.
How long has Realty Income paid monthly dividends?
Since its founding in 1969. It had declared 673 consecutive monthly dividends as of its second-quarter 2026 report and has increased the dividend 135 times since its 1994 listing.
Does Realty Income own casinos?
It owns Encore Boston Harbor, leased to Wynn Resorts, and an interest in the joint venture that owns the Bellagio Las Vegas, leased to MGM Resorts, alongside Blackstone Real Estate Income Trust. Gaming was 3.1% of annualized base rent at June 30, 2026.
Can REIT shares be used in a 1031 exchange?
No. REIT shares are securities, not like-kind real property. A Section 721 contribution of property to an operating partnership in exchange for units is a different transaction with its own rules and generally ends the ability to do further 1031 exchanges on that position.
Do inherited REIT shares get a step-up in basis?
Generally yes. Inherited REIT shares and qualifying directly owned real estate both generally receive a basis adjustment to fair market value at the owner’s death, subject to applicable tax rules.
Related Analysis
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