What Investors Missed in Q2 Report

Realty Income (NYSE: O), also known as The Monthly Dividend Company, has released its operational performance report for the second quarter of 2023, covering the three months that ended June 30. In the report, the funds from operations, available to the common stockholders were reported as $688.3 Million and after some further adjustments, it came up to $671.7 Million. Moreover, the firm also invested $3.1 Billion in 710 properties and properties under development.

Stong Financial Position

When the balance sheet was analysed, the company seemed strong The debt-to-earnings ratio was 5.3 times, while they sold 414 convenience stores for $1.5 Billion to EG Group. These notes provide the company with additional funding and flexibility as it navigates the market. The company sold 414 convenience stores to EG Group for $1.5 billion and then leased them back.

The management has stated that the investment opportunities in the global pipeline continue to offer favourable risk-adjusted return profiles. In Q2, the company closed a $3.1 Billion investment volume and is currently assessing new geographies for expansion. The well-capitalized balance sheet is further supported by a successful Euro bond offering in July.

Another $650 Million On The Way

The company expects over $650 Million in net proceeds from unsettled sales of common stock to support growth initiatives. The company’s real estate portfolio finished with a 99.0% occupancy rate, providing investors with consistent cash flows and compelling risk-adjusted returns.

Technical Analysis and Prediction of the Realty Income Stock Price

At press time, the Realty Income stock price is trading at the level of $47.9. The stock is in a downtrend after falling from the level of $75.1 in mid-August. Bears are in action as Realty Income has broken several significant supports during this downward rally.

At present, the shares fell near their 2-and-a-half-year low at a support level of $48.3. Meanwhile, the resistance levels from this point are $55.5 and $63.3, respectively.

If investors can maintain control of the current levels, the price prediction for Realty Income stock will be bullish. Currently, the stock is hovering near a strong support level and the bulls are likely to regain control. However, if the bears take over, the stock price could fall towards the second support level of $42.10.

Conclusion

Realty Income (NYSE: O) stock has posted its earnings report for the 2nd quarter that ended in June. The company has shown significant growth in its portfolio which made its balance sheet strong. The current stock trend is negative but the bulls might make a trend reversal.

Technical Levels

Support Levels: $48 and $42
Resistance Levels: $55 and $63

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.