Realty Income's 98.7% Occupancy Rate and 5.3% Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: NASDAQ.COM
- High Occupancy Rate: Realty Income, with over 15,500 commercial properties, achieved a 98.7% occupancy rate in the latest quarter, indicating its ability to attract tenants amid economic uncertainty, thereby ensuring stable rental income and shareholder returns.
- Stable Dividend Yield: The company has raised its dividend 132 times since its IPO, currently offering a forward yield of 5.3%, with expected AFFO per share growth to $4.25-$4.27 by 2025, comfortably covering its $3.22 dividend payout.
- Diversified Tenant Base: Vici Properties, owning 93 entertainment venues, maintains a 100% occupancy rate by locking tenants into long-term leases tied to the Consumer Price Index, ensuring stable cash flow even during economic fluctuations.
- Data Center Growth Potential: Digital Realty expects its core FFO per share to rise 8%-9% to $7.25-$7.30 by 2025, and while its current yield is about 3%, its expansion in cloud and AI markets positions it as a solid long-term investment.
Analyst Views on DLR
Wall Street analysts forecast DLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DLR is 189.06 USD with a low forecast of 139.00 USD and a high forecast of 220.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
15 Buy
2 Hold
1 Sell
Strong Buy
Current: 160.570
Low
139.00
Averages
189.06
High
220.00
Current: 160.570
Low
139.00
Averages
189.06
High
220.00
About DLR
Digital Realty Trust, Inc. is a real estate investment trust. The Company owns, acquires, develops, and operates data centers through its operating partnership subsidiary, Digital Realty Trust, L.P. The Company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. Its portfolio consists of over 308 data centers, of which 121 are located in the United States, 112 are located in Europe, 36 are located in Latin America, 16 are located in Africa, 16 are located in Asia, six are located in Australia and three are located in Canada. Its PlatformDIGITAL is a global data center platform for scaling digital business which enables customers to deploy their critical infrastructure with a global data center provider.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
