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Realty Income (O) is up 16.18% YTD with a gain of 5% and a dividend of $3.24 per year. The company issued $2.4B in Q4 2025, is targeting $8B for 2026, is trading 3-4 times below historical multiples, and committed $200M to Mexican industrial sites.
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Realty Income is diversifying beyond retail into industries, gaming, and data centers, and new revenue channels take 3-5 years to fully contribute to growth.
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Jim Cramer doesn’t make recommendations on REITs lightly. But in recent times Crazy Money part, he made his position clear: “I like what I see, so let’s take a closer look with Sumit Roy, President and CEO of Realty Income Corp, to better study the situation.” He continued, calling Realty Income (NYSE:O) is the best of REITs. That’s a bold claim that deserves to be released.
The stock is up 16.18% year to date and has a dividend yield of nearly 5%. But the most interesting story is not the first of the latter. That’s what Realty Income builds on.
Most investors still think of Realty Income as a real estate agent that sells merchandise to dollar stores and drug stores. That image is getting old. The company has been diversifying in the industrial, gaming, and data center areas, and recently made its first move into Mexico with a $200 million industrial portfolio commitment. The Mexico game is a close bet, targeting logistics services in Mexico City and Guadalajara alongside partners GIC and Hines.
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CEO Sumit Roy planned the company’s direct appearance on the Q4 earnings call:
“Income Realty today is a full-service real estate financing provider with global reach, multi-product capabilities, and a large diversified set of channels that support our growth engine, supported by a high-quality portfolio that generates stable and growing cash flow.”
That’s not marketing speak. The company spent $2.4 billion in Q4 2025 alone and is targeting $8 billion in investment volume for 2026, up from $6.3 billion in 2025.
This is where it gets interesting for long-term investors. Roy admitted on air that the stock is trading 3 to 4 times below its historical multiple. Framing that as a gap, not a decision. Large new channels, including the US Core Plus Fund targeting $1.7 billion by March 31, 2026 and the GIC joint venture with combined commitments of more than $1.5 billion, take time to show in profits. Roy laid out a timeline of 3 to 5 years for these channels to fully contribute to growth.
Cramer approved that patience. The strategy may take time to pay off, but the foundation is being laid now.
As the growth thesis grows, Realty Income continues to pay monthly dividends. The company recently recorded its 113th consecutive quarterly earnings increase, with an annual average of $3.24 per share. The next payment is due on March 13, 2026.
Cramer sees a REIT that has quietly reinvented its growth engine while keeping its income promise intact. The valuation gap described by Roy could indicate a market waiting to see a new strategy deliver results. Monthly dividend payments continue as the market assesses the company’s direction.
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