There was an article about 5 reasons why Realty

<5 Reasons Realty Inc. Is Best Ritz Dividend Stock To Buy>

There was an article about 5 reasons why Realty Income is the best REIT dividend stock to buy, so I read it.

First, the key point in the article is,

- There is a huge opportunity for Realty Income.

- The Spirit Realty merger diversified its portfolio and improved access to capital.

- Realty Income has proven its ability to create shareholder value over the years.

I think I can summarize this much.

Now, if you look at the content in more detail,

Since going public in 1994, Realty Income has been a company that has been doing well, increasing dividends by an average of 4.3% per year, continuing to increase dividends by 123 times during that period. This steadily increasing dividend contributed to achieving a total return of 14% per year.

Realty Income is a leading company in REITs and explained five reasons why Realty Income stands out as one of the best investment opportunities in the real estate sector.

1. a great opportunity

Realty Income CEO Summit Roy explains that Realty Income is currently best positioned to take advantage of the opportunity to see the future in the real estate sector,

"We're estimating traditional triple-net leasing and a market worth a total of $14 trillion in the U.S. and Europe across emerging sectors such as data centers and gaming," he said.

As they are doing well in the past, emerging industries such as the U.S. data center development market and the game market are also expanding, so they will be able to save good opportunities.

2. a proven success

"In addition to completing sales and rental transactions, we are firmly demonstrating our capital allocation capabilities, investing more than $9 billion annually, including public M&A, over the past three years after a 20-year pandemic," said Summit Roy, CEO.

Realty Income is a company that knows how to acquire real estate better than anyone else, and in addition to simply buying it from its owner, it acquired its peer VEREIT in 21 and recently acquired Spirit Realty.

These transactions were part of the ability to increase operating income per share while significantly increasing its size. The figure is said to have increased by more than 6% annually over the past three years.

"Looking beyond 24 years, we are on track to meet similar capital allocation and operating income per share growth targets this year. Realty Income is excited to grow new data centers and gaming sectors that deliver healthy cash flow and strong rental growth," Roy said.

3. deep access to capital

With the recent completion of the merger with Spirit Realty, it also appealed that its ability to access the capital market has deepened through an increase in the volume of publicly listed stocks.

Realty Income is currently considered one of the 200 largest companies in the S&P 500, and in terms of the same industry, it is more than seven times larger than its nearest competitors.

He said one of the attractive points is that capital can be used to finance businesses in an efficient way by issuing stocks regularly when needed.

As Realty Income grows in size, it is expected to generate a lot of free cash to raise new investment funds, and it is analyzed that the acquisition of Spirit Realty will generate more than $800 million in annual free cash flow.

4. an increasingly diversified portfolio

Realty Income's real estate portfolio is becoming increasingly diverse over time, consisting of properties that rent out the world's best companies in the industry: blue-chip tenants as customers.

Spiritualty's merger has allowed Realty Inc to lower its current share of convenience stores to 10.2% from 11.1% while increasing its share of industrial properties to 15.1% from 13.1%, it said. It has added assets in data centers and agriculture and gaming to its portfolio over the past few years and has also begun buying properties in previously non-operating European countries.

5. Differentiated platforms

The power of these platforms is also an important differentiator for Realty Inc, as Realty Inc. is leveraging its expertise in more than 15,400 real estate ownership worldwide, including Spirit Realty's portfolio.

Since 1996, Realty Income has managed more than 5,900 rental expiration cases, and recently, it is said to be using AI tools to create data that can maximize the value of existing assets and provide insights.

In the end, it seemed that the use of such data would lead to Realty Income's ability to increase shareholder value by enabling better informed investment decisions.

<Best real estate stock>

Realty Income is a REIT company that is showing the best performance since it was listed on the US Stock Exchange 25 years ago. It has the experience, portfolio, and stable financial resources to match it to take advantage of the investment opportunities that can grow.

Expanding portfolios and cash flows is essential to supporting steadily increasing dividends, and in that regard, Realty Income has done really well so far and is one of the companies expected to do well in the future.