Why 2025 Could Be the Year for Realty Income Stock

Realty Income (NYSE: O) stock has become a market enigma over the last few years. Though the real estate investment trust (REIT) has continued to expand, its stock is down by approximately one-third from the peak it touched in February 2020 as higher interest rates reduced its profitability. Nonetheless, the REIT continued to add properties and tenants despite the higher interest rates, a testament to the strength of its business. Now that the Federal Reserve is lowering interest rates, the stock could be due for a long-awaited recovery.Realty Income has prospered by net leasing single-tenant commercial properties. Since net lease arrangements transfer the costs of taxes, insurance, and maintenance to its tenants, it can, in theory, profit more.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool