Realty Income Corporation Puns

I completely missed this and haven't seen it posted here yet so here yall go.

Report (April 2021):https://s21.q4cdn.com/421822989/files/doc_financials/2021/Press-Release-Realty-Income-To-Merge-With-VEREIT-In-All-Stock-Transaction-4.29.21.pdf

TLDR:

• O will buy VER in an "all-stock transaction" and create a spinoff (This will have ALL their office space) called "Spinco". VER shareholders will receive 0.705 a share of O.
• Shareholders of O will have 70% of the new company (basically every 2 shares gives you 1 Spinco (new company's name)) while VER will get 30% (So almost every 4 shares)
• The new company will hold ALL of VER and O's office spaces and, it's a REIT! So it legally needs to pay 90% of its income as dividends (meaning we got another company that pays dividends (I'm assuming monthly)).

Key Takeaways:

" Realty Income Corporation (NYSE: O) (“Realty Income”), The Monthly  Dividend Company®, and VEREIT, Inc. (NYSE: VER) (“VEREIT”) today announced that the two companies have entered  into a definitive merger agreement by which Realty Income will acquire VEREIT in an all-stock transaction, creating a  combined company with an enterprise value of approximately $50 billion "

" VEREIT shareholders will receive 0.705 shares of Realty Income stock for every share of VEREIT stock they own "

" Dividend stability. Realty Income is one of only three REITs in the S&P 500 Dividend Aristocrats Index® for 
having increased its dividend every year for the last 25 consecutive years and the improved diversification 
effectuated through the merger is expected to further enhance the durability of Realty Income’s dividend 
coverage. VEREIT’s shareholders are expected to experience an immediate increase in the dividend upon 
closing of the merger. Dividend payments for both companies are expected to remain uninterrupted through the 
close of this transaction."

About the Spin-Off (Spinco):

Immediately following the closing, the companies expect to effectuate a taxable spin-off of substantially all of the office 
properties of both companies into a new, self-managed, publicly traded REIT (“SpinCo”). Following the merger and the 
spin-off, Realty Income will continue as the surviving public entity. Realty Income and former VEREIT shareholders are 
expected t

Realty Income Corporation (O) is one of only three real estate investment trusts (REITs) in the S&P 500 Dividend Aristocrats Index for having increased its dividend every year for the last 25 consecutive years.

So, for those of us who are shareholders of O, I know many of you already received your proxy materials from your broker. And I know most of you probably didn’t have time to read all 301 pages. Here is the abbreviated version and some important highlights and updates.

First, an important note on how dividends will be affected: The improved diversification resulting from the merger is expected to further enhance the sustainability of Realty Income's dividend coverage. VEREIT's shareholders are expected to experience an immediate increase in the dividend upon closing of the merger. Dividend payments for both companies are expected to remain uninterrupted during this transaction.

The Merger with VEREIT

The boards of directors of Realty Income Corporation and VEREIT, Inc., have each approved an Agreement and Plan of Merger, dated as of April 29, 2021, and is expected to close during the fourth quarter of 2021.

Immediately following the closing, the companies expect to effectuate a taxable spin-off of substantially all of the office properties of both companies into a new, self-managed, publicly traded REIT ("SpinCo").

Following the mergers and assuming the consummation of the Spin-Off, Realty Income’s portfolio is expected to encompass approximately 10,300 primarily single-tenant, net lease commercial real estate properties located in all U.S. states, Puerto Rico and the U.K., with an estimated total portfolio annualized contractual rent of approximately $2.5 billion, based on a combined portfolio as of December 31, 2020.

Will O Stockholders Receive Shares of the New REIT?

The short answer: Yes!

Following the effective time of the Merger, Realty Income and VEREIT intend to contribute certain of their office properties (the “OfficeCo Properties”) to a newly formed direct or indirect wholly owned subsidiary of Realty Income, and for Realty Income to distribute all of the outstanding voting shares of common stock in OfficeCo to Realty Income’s stockholders (which, at that time, would also include the VEREIT stockholders as a result of the Merger) on a pro rata basis. Following the consummation of the Spin-Off, VEREIT and Realty Income intend for OfficeCo to operate as a separate, publicly traded REIT.

**If the Spin-Off is cons

I've been accumulating shares of Realty income corporation (O - NYS) for a year on degiro. Yesterday i wanted to add some shares and i could not buy this stock. When I tried to look for it it the search bar it was gone. So far that is the only stock that has this problem. First I thought it had something to do with the earnings date, but today it happened again.

Does anyone know why this is or have the same problem?

The company is down $30 a share from its high. It pays a solid dividend. I have about 5k I was thinking about putting into it. No fees like an etf and a solid dividend, I feel like this could make for a solid return over the next few years. Thoughts?

$59.86 > $61.18 (still a good buy / buena compra)

DD below:

¡La empresa 'The Monthly Dividend Income'! Ha existido mucho tiempo, te paga por mantener sus acciones (rendimiento anual superior al 4%) y actualmente está infravalorado debido a la incertidumbre general en torno a los propiedad en este momento.

'The Monthly Dividend Income' company! It's been around a long time, pays you to hold their stock (annual yield above 4%), and currently undervalued due to the general uncertainty around real estate right now.

As someone who likes the idea of receiving regular cashflow from a rental property but doesn't want to deal with the hassle of maintaining an investment property (which costs time, money, or both), dealing with idiotic tenants who don't care about the place because they don't own it, liaising with real estate agents who couldn't give a stuff because they have a long list of landlords they have to look after, trying to find a buyer to sell it eventually, not wanting to go through years of negative gearing etc. I find O to be pretty attractive.

For those who don't know, O is a REIT that invests in US commercial property. It's also a Dividend Aristocrat, i.e. a company that has increased its dividend payout consecutively for at least 25 years. It also pays dividends out monthly which to me is very attractive for cashflow.

I've bought O through Stake and I'm flirting with the idea of increasing my stake (no pun intended) in it long term. At the current dividend payout of $0.2335 USD, if I wanted $600 USD each month I'd have to own ~2570 shares. At the current price of $58.59 I'd have to own $150,552.46 USD worth of O. Not a bad amount and it's basically a house deposit for a ~$1 mil home but without the shit that comes along with owning an IP.

My question is, what are the long term implications that could arise from owning O?

Long term, the main risk that sticks out is that it is not currency hedged, so if in 30 years time the AUD buys $2 USD the dividends will be diminished when converting them back to AUD. Another risk is if the tax treaty between Aus and the US changes (at the moment I pay withholding tax on the dividends). If policy changes could the amount of tax I pay be higher or lower? I don't know much about tax treaties and how often they are updated etc. though. Is this a possible risk? What else is there?

Short term risks are coronavirus and stores shutting up shop, although IMO shit would really have to hit the fan in the US for O to plummet further or decrease dividends because its main tenants are staples, e.g. pharmacies and convenience stores. They have some gyms and cinemas though which could be impacted by coronavirus.

**Does anyone else own O, or is considering buying it into the long term, and what do you see as risks for owni

I found a property that I want to buy and Realty Income owns the property. They are a large REIT based out of San Diego. The property they own is out of the norm for them and has a struggling tenant (I would think Realty Income would at least be interested in talking to me). I have tried calling multiple people and can't get a hold of anyone there. Does anyone have experience working with them?

https://www.prnewswire.com/news-releases/spruce-point-capital-releases-a-strong-sell-forensic-research-opinion-on-realty-income-corporation-nyse-o-300595136.html

http://www.sprucepointcap.com/realty-income-corp/

> Deceptive Same Store Property Reporting: Forensic accounting work indicates that the true underlying economic performance of Realty Income's properties, as measured by Same Store Rents (SSR) are declining. The Company disclosed its SSR growth rate of 1.2% in 2016. Spruce Point's industry normalized definition of same store property performance suggests that that SSR declined by 0.8% in that period – an astounding 2.0% overstatement.

> Tenant Quality Deteriorating as Retail Landscape Changes: A deep dive into the tenant quality of Realty Income reveals the corporation's outsized 20% risk exposure to drug stores, grocery stores and movie theaters -- three retail subsectors facing disintermediation.

> Interest Rate Tightening Cycle Major Headwind: Consensus expectations is that the 10 year treasury will surpass 3.0% by 1Q'19. Realty Income's historical stock performance exhibits negative correlation with interest rates.

> Dividend Sustainability Decreasing: Spruce Point's proprietary measure taking into account the average remaining lease term, run-rate FFO, and dividend suggests that Realty Income's dividend sustainability is at its lowest level in more than a decade. This should be a source of concern for dividend yield seeking investors

>Precedent for Significant Revaluation of Share Price: There are ample case studies to show 40%-50% share price declines when investors revalue a REITs declining performance. For example, Wall Street has meaningfully penalized a few REITS (DDR, Brixmor, Kimco) that own retail properties where the same store growth profile swung from positive to negative growth.

Spruce Point Capital also criticized the executive management team of consisting of entirely ex-investment bankers, and the ethics board being lackluster.

EDIT: They have also posted on Twitter with data backing their criticism of O: https://twitter.com/sprucepointcap

EDIT2: Thanks to u/ron_leflore for pointing out O's recent situation.

What about Bernanke's news today made this stock plummet?

I've been enjoying this stock's nice returns for the past month but this huge drop all of the sudden has me worried. I'm wanting to get my dividend but i'm not sure its worth the drops today.

https://www.google.com/finance?q=NYSE%3AO&ei=WAydUbDSCaaelgOsWw

Hi O investors,

One of my family members are looking to convert some of her real estate portfolio into O for ease of management and they are concerned about the K-1 form. If you invest in O past few years have you ever received a K1 form ?

Thanks,

Hey Everyone.

Don't let this scare continue to hurt your investments. Right now the stock is trading at 67.52. 4.4% Dividend, not including the recent announced increase.

Right before the Covid-19 crisis, they had quarterly earnings of roughly 410 million, estimated 1.4 Billion year over year. That was when they were trading around the upper 70s.

Now they are seeing almost 500 million in quarterly earnings, trading in the mid 60s still due to the Omicron news.

Their market cap currently is about the same due to diluted shares. But is still a strong buy until the market cap is 15% above pre-covid levels.

Long Live O, the most orgasmic stock ever.

Sources:

https://www.macrotrends.net/stocks/charts/O/realty-income/market-cap

https://www.macrotrends.net/stocks/charts/O/realty-income/revenue

Hi there! Is there anyone crazy enough to be 100% all in on Realty Income?

Here are some reasons I think Realty Income is superior:

1. Scale advantage allowing the company to make bigger deals

2. Management and history of increasing dividends

3. High current yield of >4.20% APY

4. A-rated credit by Moody's and S&P Global

5. Exemplary capital allocation by Morningstar

6. European expansion allows for more growth opportunities with little competition, mainly WPC

7. European expansion gives O access to bond markets with very low yields

8. Inflation means increasing property values, which is good for O because it's an equity REIT. Increased book value compared to dividends paid reduces WACC on the issuing equity side

9. If inflation is transitory, then interest rates will likely stay low for a while, keeping WACC low on the borrowing side, so a heads-O-wins and tails-O-wins situation

10. One downside to inflation is the fact that there are not very many CPI-tracking rent escalators for O leases, I read that a lot of their leases have a 1% annual increase

11. Monthly dividends are cool, and management's first focus, which means the company is conservative with investments

12. Tenant diversification, creditworthiness, and defensive sectors limit probabilities of things going wrong

13. Personally, B2B NNN real estate has a low carbon footprint due to operational efficiency, and it doesn't harm people

14. They have recently this year committed to better environmental outcomes for their properties

15. The fact that they have so many tenants in different industries basically makes it a diversified fund

The only real negatives that I can see is nonsystematic risk regarding management decisions, but the corporate culture seems strong, and the adherence to the dividend protects against this. The dividend growth rate is also somewhat low at ~4-5% annually, but I think there is a chance that this is conservative due to the competitive advantages involving the scale efficiencies.

Any thoughts?

I have noticed a significant amount of confusion and questions regarding Realty Income ($O) and VEREIT's ($VER) "deal." This post is my attempt to help users of this community understand this transaction affecting so many of our portfolios. Please also feel free to use this thread to discuss the transaction itself, as well as to share your thoughts and opinions.

About the Transaction (ELI5 version)

Realty Income acquired a Real Estate company called VEREIT (abbreviated "VER"). VER was a company that owned a large, diverse portfolio of restaurant, retail, office, and industrial properties. As of September 30, 2021, VER owned 3,882 properties (source). All of these were bought by Realty Income.

Realty Income has for a long time been trying to diversify away from office properties, given the trend towards work from home. Once Realty Income acquired VER, they took all 92 of their single tenant office properties (some from O, some from VER) and spun them off into their own separate company, called Orion. That company is now trading under the symbol ONL. The people running Orion are the same as those who were running VEREIT.

More technical details

The Transaction took place as an all-stock deal. VEREIT shareholders were given stock in Realty Income in exchange for their VEREIT shares. As a result, O's stockholders were diluted slightly, but gained over 3,000 properties in the process. Realty Income did spend some cash to finance the technical aspects of the transaction. Both companies hired lawyers to ensure things went smoothly, and Wells Fargo was hired to physically collect the shares and perform the technical requirements of this transaction type.

What do shareholders get?

VEREIT shareholders will receive 0.705 shares of Realty Income stock in exchange for every share of VEREIT stock they own.

Realty Income shareholders will receive 1 share of Orion Realty for each 10 shares of Realty Income they own.

----Frequently Asked Questions----

Should I keep or sell Orion Realty?

That is entirely up to you. Orion is a new company with a specific focus on owning office space in the suburbs of the United States. Their largest single tenant is the United States government.

Why is the stock price so unstable?

This is standard for any new company. During the first few weeks, you will have people who got shares they

I had always had my eye on this stock in particular as a dividend stock. it looked promising, gave a great monthly dividend, and has recovered from the pandemic and doesn't look at all like it will slow down any time soon.

comparing it to something such as VTI, you can see here, it has a huge outperformance

I find that absolutely crazy, and it shows that just because something is a "dividend stock" that doesn't mean it isn't capable of growing. On top of that, it pays a monthly dividend that has a good yield that doesn't seem to be hurting the company at all!! Aside from a few years early-mid 2000s, it has crushed VTI it looks like

I'll definitely be picking up shares of realty income later down the line. The companies Financials are solid, the companies track record is solid, the companies dividend yield is solid, and it recently became a dividend aristocrat in 2020 as well. very promising, but admittedly this is all at a glance. I think psychologically, seeing a dividend of 20 or more every month makes you more eager to invest than seeing a dividend from VTI that is lower, and every three months as well.

Does anyone have favorite tickers of monthly paying residential real estate funds? Looking for appreciation, monthly distributions....

(Just want to diversify my income streams in case the 7-11s, walgreens, gyms, etc., that O invests in ever hit hard times...)

Thoughts?

The 1 star review I found:

" I contacted this rental company interested in a property they had that fit within my income limits with a roommate. I am a single mother of two children trying to be keep a roof over our heads and currently with the market and rent cost going up everywhere in Spokane I am down to the point of needing a roommate. Little back story. Both of us have fulltime jobs that pay ABOVE minimum wage and verifiable income and good credit scores above their requirements. I was told by both office people, Frank and Ally, that there was a first month, deposit, and last month of $1600 each totaling to $4,800 just for the move in cost. Understandable, however, not listed on the website as a requirement. What really truly has me frustrated is what the income requirements are to rent from them. Because I would have a roommate or even a boyfriend, they don't count the other persons income unless you are married. So in turn, I MYSELF would need to make $4800 gross income on my own per month. That is $58,000 a year ON MY OWN. First off, this is DISCRIMINATING!!! Secondly, if I made that kind of money I wouldn't need a roommate. Thirdly, as a single mother/person this doesn't help anyone survive. This is pushing people into poverty. This is sad. I would not recommend renting from this company until they change their ways!!!"

For single people, this is pretty crazy. Just read this review online after looking for a place myself. If R H Cooke & Associates requires single people to be making 58,000 individually, that's a problem. Looks like you have to be married, or doing very well financially if you want to rent from this company.

Renters, thoughts?

https://www.google.com/search?q=r+h+cooke+%26+associates+spokane+wa&rlz=1C1OKWM_enUS910US910&oq=R+H+Cooke+%26+Associates&aqs=chrome.0.0i355i512j46i175i199i512j69i57j0i22i30l2j69i60l3.5194j0j4&sourceid=chrome&ie=UTF-8#lrd=0x549e188f4fde9ccb:0xe1c4d0c59377b028,1,,,

The distribution seems to have happened and the new ticker is live, but nothing for Revolut users?

NYSE: ONL

I'll be honest I have not really been paying attention to it, I invested money in it ages ago and just left it alone. It's been doing very well. But now I hear about some merger and also spinning off into a new company? Does that mean I will lose some of my position in O in exchange for some shares in the new spin-off company? In which case, seems like a risky/precarious position, no?

Excuse my ignorance on this matter.

Wie viele Andere, habe auch ich (Student ohne Einkommen) heute die Spin-Off-Aktien (Orion Office REIT; US68629Y1038) von Realty Income (US7561091049) eingebucht bekommen.

1. Wie wird diese Aktieneinbuchung steuerlich behandelt werden müssen?

2. Welcher Kaufkurs ist für mich relevant für den Verkauf?

Vermutlich gilt die gesamte Position als Gewinn und muss daher gänzlich beim Erhalt und Verkauf 100%ig versteuert werden (Kapitalertragssteuer in Deutschland und 30% US-Quellensteuer USA)?

Stellt nun die Bank eine nötige Abgabe in Rechnung oder muss ich eine Steuererklärung abgeben, die für mich als Studenten ohne Einkommen aber wieder entfällt?

Ich möchte in kein unnötiges steuerliches Fettnäpfchen treten und mich deshalb über eine Richtungsweisung sehr freuen - danke!

I have a goal for the year to get $10k into REITs as a diversification strategy and to learn more about them as an investment vehicle.

One of the REITs I selected was $O. I noticed that I recently acquired a few shares of $ONL in a spin-off as part of a merger. The price for $ONL has been dropping all week, but there’s no data in terms of yield, etc. (at least in RobinHood) to help me get a sense for whether to buy/sell/hold.

Fellow investors - any tips about how we can evaluate $ONL while it is so new?

$O today has declared an increase in the company's monthly dividend to $0.236 (from $0.235/share). This is the 112th dividend increase since the company’s listing on the NYSE in 1994. Small but exciting!!! On average, $O has been increasing its dividend every 2.8 months.

SAN DIEGO, Dec. 15, 2021 - Realty Income Corporation (Realty Income, NYSE: O) today announced its Board of Directors has declared an increase in the company's common stock monthly cash dividend to $0.2465 per share from $0.246 per share. The dividend is payable on January 14, 2022 to shareholders of record as of January 3, 2022. This is the 114th dividend increase since Realty Income's listing on the NYSE in 1994. The ex-dividend date for January's dividend is December 31, 2021. The new monthly dividend represents an annualized dividend amount of $2.958 per share as compared to the current annualized dividend amount of $2.952 per share.

"As we approach the end of 2021, I'm pleased that our Board of Directors has once again determined that Realty Income can increase the amount of the monthly dividend," said Sumit Roy, President and Chief Executive Officer of Realty Income. "This will be our 114th dividend increase since 1994 and is in line with our mission to invest in people and places to deliver dependable monthly dividends that increase over time. With the payment of the January dividend, we will have made 618 consecutive monthly dividend payments throughout our 52-year operating history."

Personally I am neutral I will need to see the stats on the new company.

View Poll

Ticker: O
Current Price: $66.46
Dividend Yield: 4.26%
Dividend Frequency: Paid Monthly

Background and Objective
O Realty Income, "The Monthly Dividend Company", aims to provide dependable monthly income to shareholders. The dividends paid are supported by the company's real estate portfolio. O is a Real Estate Investment Trust with around 630 clients, over 6,700 properties under long term lease agreements, and locations in all 50 states as well as Puerto Rico and the United Kingdom. Their real estate portfolio focuses on commercial properties primarily in retail.

Real Estate Investment Trusts
REITs can have a high correlation with the price activity of the rest of the stock market and are not immune to market crashes. However, since REITs are also driven by rising rent prices, they can offer an extra layer of diversification in the real estate market for investors. As rent increases, REITs collect more income and in turn pay out higher dividends to investors, which attracts more investors and drives the share price up further. REITs receive tax benefits if they issue 90% or more of their profits to investors as dividends.

Performance and Dividend Growth
Here is O's performance over the last 20 years with dividends reinvested (average annual return 15.76%) and [here](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2000&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&fr

Realty Income is up 3% on these news and I must admit that I have no clue what it’s about.

Link to the article: https://www.prnewswire.com/news-releases/realty-income-announces-results-of-early-participation-in-exchange-offers-and-consent-solicitations-301407119.html

Hi,

Trying to figure out if i am missing something. I don't see $ONL ticker in M1 finance. Dont i have to add this symbol to my pie in order to get the spinoff shares from $O after Nov 1?

thanks

Following the merger of O and VEREIT, Realty income shareholders will receive one share of the new spinoff company for every ten shares of Realty income owned.

This means that you receive an additional $2.50 in value for each Realty income share owned

$25 / 10 = $2.50
Price of Orion shares / Number of Realty Shares needed to get one = Realty Income value received per O share in the new company.

Source: Wall Street Journal https://www.wsj.com/market-data/quotes/ONLWI

Record: Nov. 2

Spinoff-date/"pay date": Nov. 12

Realty Income And VEREIT Announce Anticipated Closing Date For Merger And Realty Income Sets Record And Distribution Dates For Spin-Off