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Moody's Corporation (MCO) - free report >>
Realty Income Corporation (O) - free report >>
Saul Centers, Inc. (BFS) - free report >>
Retail Opportunity Investments Corp. (ROIC) - free report >>
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Realty Income Rating Affirmed by Moody's, Outlook Positive
Ushering in good news for Realty Income Corporation (O - Free Report) , Moody's Investors Service, the rating arm of Moody's Corp. (MCO - Free Report) , announced that it has affirmed the ratings of the company – senior debt at Baa1 – and revised the outlook to positive from stable.
Per the rating agency, this move reveals Realty Income's sturdy balance sheet and liquidity profile that is aided by steady cash flows generated from its triple-net leased retail properties.
The positive outlook reflects the rating agency’s anticipation that the retail real estate investment trust (REIT) would grow in a disciplined way, backed by robust earnings and operating margins together with credit metrics improvement.
In fact, the rating agency noted that strong performance in the triple-net lease sector has helped the company endure market doldrums together with solid liquidity profile that is backed by its large unencumbered asset base.
The rating affirmation reassures a company’s creditworthiness in the market and is likely to support investors’ confidence in the stock. This ensures continuous accessibility to capital required for a company’s growth.
Realty Income is a California-based company, which targets well-located, freestanding, single-tenant, net-lease, commercial properties. The company generates over 40% of its annualized rents from investment grade tenants. Its estimates have been stable lately ahead of the company’s Q2 earnings release. The company had a mixed record of earnings surprises in recent quarters.
REALTY INCOME Price
REALTY INCOME Price | REALTY INCOME Quote
Realty Income currently has a Zacks Rank #3 (Hold). However, investors interested in the retail REIT industry may consider stocks like Retail Opportunity Investments Corp. (ROIC - Free Report) and Saul Centers Inc. (BFS - Free Report) . Both these stocks carry a Zacks Rank #2 (Buy).
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