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Realty Income's Valuation Ignores COVID-19's Spread; Capital For Lease Renewals Will Also Hurt Returns


An analysis of changes in Realty Income's Lease Expiration Schedule reveals primarily short-term renewals.

Lease renewals appear to require significantly more capital than O's disclosure indicates.

2Q18 Financial Supplement eliminated disclosure of releasing capital.

The pandemic and its impact on O's tenants will make it difficult for investors and analysts to ignore Realty Income troubling renewal trends.

Realty Income's management commentary on COVID-19 during its 1Q20 Earnings Call and at NAREIT seems pollyannaish in light of the recent spread in the South and West.

Read on for this short's (see the disclosure at the end of the essay) pejorative analysis:

Long O
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