Realty Income (NYSE: O) has faced headwinds as interest rate hikes have dampened its pandemic recovery, but analysts suggest that now may be the time to hold rather than sell. The REIT, which owns over 15,500 single-tenant properties leased to blue-chip clients like Dollar General and Wynn Resorts, boasts a nearly 99% occupancy rate, ensuring a steady revenue stream despite rising interest costs.

In 2025, Realty Income reported $5.75 billion in revenue, a 9% increase year-over-year, and a net income of $1.06 billion, up 23% from the previous year. The company’s funds from operations (FFO) reached $3.89 billion, or $4.25 per diluted share, comfortably covering its annual dividend payout of $3.25 per share, yielding 5.1%—well above the S&P 500 average.

Investors are advised to view any price pullbacks as potential buying opportunities, as Realty Income’s strong client base and favorable financing terms position it well for continued growth and income generation in a challenging interest rate environment.

Source: fool.com