FBR Capital Maintains a 'Market Perform' on Realty Income (O); Going with the Flow; Investment Opportunities Abound
Tweet
Share
E-mailGet Alerts O Hot Sheet
Price: $62.40 -0.54%
Rating Summary:
18 Buy, 22 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
18 Buy, 22 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Join SI Premium – FREE
FBR Capital maintains a 'Market Perform' on Realty Income (NYSE: O), PT $34.
FBR analyst says, "We believe O has started the year on solid footing with regard to (1) portfolio performance (same-store sales up +1.3%, occupancy +20 bps to 96.8%), and (2) reiterating expectations for ample acquisitions in 2011 (maintained guidance of $600M to $750M). Management noted it continues to see a “substantial flow of acquisition opportunities,” giving us confidence O will meet, or possibly exceed, the aforementioned capital deployment goal this year. With over $550M of purchasing power ($129M of cash and $425M on the credit facility), we believe O's balance sheet is set up well for additional growth. However, from a valuation standpoint, we still feel shares are appropriately valued trading at 16.5x 2012 FFO and a 30+% premium to NAV. That being said, with the 10-year Treasury yield tightening below 3.30%, O’s 4.8% dividend yield continues to look attractive on a relative value basis for income-oriented investors, especially with potential upside to the dividend considering O's conservative 88% AFFO payout ratio."
For more ratings news on Realty Income click here and for the rating history of Realty Income click here.
Shares of Realty Income closed at $36.07 yesterday.
FBR analyst says, "We believe O has started the year on solid footing with regard to (1) portfolio performance (same-store sales up +1.3%, occupancy +20 bps to 96.8%), and (2) reiterating expectations for ample acquisitions in 2011 (maintained guidance of $600M to $750M). Management noted it continues to see a “substantial flow of acquisition opportunities,” giving us confidence O will meet, or possibly exceed, the aforementioned capital deployment goal this year. With over $550M of purchasing power ($129M of cash and $425M on the credit facility), we believe O's balance sheet is set up well for additional growth. However, from a valuation standpoint, we still feel shares are appropriately valued trading at 16.5x 2012 FFO and a 30+% premium to NAV. That being said, with the 10-year Treasury yield tightening below 3.30%, O’s 4.8% dividend yield continues to look attractive on a relative value basis for income-oriented investors, especially with potential upside to the dividend considering O's conservative 88% AFFO payout ratio."
For more ratings news on Realty Income click here and for the rating history of Realty Income click here.
Shares of Realty Income closed at $36.07 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Realty Income closes $1B convertible notes offering
- Enovix Corporation (ENVX) PT Lowered to $5 at BofA Securities
- argenx SE (ARGX) PT Raised to $1,353 at TD Cowen
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
