Morgan Stanley Lifts Realty Income (O) Price Target on Revised AFFO Outlook

Realty Income Corporation (NYSE:O) is included among the 12 Best Income Stocks to Buy Now.

On December 24, Morgan Stanley raised its price target on Realty Income Corporation (NYSE:O) to $65 from $62 and kept an Equal Weight rating on the shares. The update followed changes to the firm’s 2025 and 2026 AFFO per share estimates.

Realty Income follows a straightforward model. It buys single-tenant commercial properties and leases them on a long-term basis using triple-net leases. Under this structure, tenants cover taxes, insurance, and maintenance. That setup lowers operating costs and helps support steady cash flow and reliable monthly dividends.

The REIT focuses on essential, non-discretionary businesses. These are tenants that tend to hold up even when economic conditions soften. Scale also plays a role. As one of the largest net lease REITs, Realty Income Corporation (NYSE:O) operates with an investment-grade-rated balance sheet. That gives it consistent, low-cost access to capital markets. It also opens the door to large acquisition opportunities that smaller competitors often cannot pursue.

The company has been pushing further into Europe. These markets now make up a meaningful share of its investment activity and are offering higher initial cash yields than many US properties. Realty Income currently operates across eight European countries, including the U.K., Spain, Ireland, and Poland.

Dividends remain a core part of the story. Realty Income Corporation (NYSE:O) pays shareholders monthly and has delivered 666 consecutive monthly dividends so far. That record stands out. Since listing on the NYSE in 1994, Realty Income has raised its dividend 133 times and logged 113 straight quarterly increases.

Realty Income Corporation (NYSE:O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties across the US, the United Kingdom, and six other European countries. These properties are leased under NNN agreements, a structure that continues to anchor its long-term strategy.

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