Choosing between Realty Income (O Quick QuoteO - Free Report) and Prologis (PLD Quick QuotePLD - Free Report) is not a simple income-versus-growth debate. Both are high-quality REITs with long operating histories, strong management teams and global portfolios. Yet, they are built for very different investor needs. Realty Income is designed to deliver consistency and predictability, while Prologis is structured to capture long-term growth tied to global logistics and infrastructure trends.

What makes this comparison timely is how each company is positioning itself for the next phase of the real estate cycle. Realty Income is leaning into scale, diversification and partnerships to reinforce stability. Prologis is doubling down on secular demand drivers such as e-commerce, supply-chain reconfiguration and data infrastructure. These choices shape not only near-term performance but also how each company compounds value over time.

For investors deciding where to allocate capital today, the key question is not which company is safer, but which one is better positioned to grow cash flows steadily in a changing global economy.

The Case for Realty Income

Realty Income’s biggest strength is the durability of its business model. As of the third quarter of 2025, the company owned more than 15,500 properties leased to more than 1,600 tenants across 92 industries, with portfolio occupancy close to 99%. This level of diversification reduces dependence on any single tenant or sector and supports reliable rent collection through different economic cycles. During the third quarter of 2025, rent recapture on expiring leases exceeded 100%, showing that Realty Income has been able to maintain pricing power even in a cautious environment.

The company has also remained very active on the capital deployment front. In the third quarter alone, Realty Income invested about $1.4 billion, taking year-to-date investments to nearly $4 billion. Europe has become an increasingly important growth market, accounting for a large share of new investments, while strategic initiatives such as the partnership with GIC and the $800 million preferred equity investment in CityCenter Las Vegas expand the company’s opportunity set beyond traditional net lease acquisitions. Management raised full-year 2025 investment guidance to roughly $6 billion.

From an income perspective, Realty Income continues to do what it is best known for. The company declared its 133rd common stock monthly dividend increase in 2025, reinforcing its reputation as a dependable income generator. This consistency is supported by long lease terms, high-quality tenants and disciplined balance sheet management, which together help smooth earnings and cash flows.

That said, the price of Realty Income’s stability is measured growth. Same-store revenue gains are steady but limited, and the net lease structure caps upside in stronger economies. Exposure to select retail tenants requires ongoing credit vigilance, while broad diversification reduces sensitivity to faster-growing sectors, slightly moderating near-term growth potential.

The Case for Prologis

Prologis operates at the center of global logistics, a segment supported by long-term structural demand rather than short-term economic cycles. In the third quarter of 2025, Prologis signed nearly 62 million square feet of leases, one of the strongest leasing quarters in its history. Portfolio occupancy improved sequentially to about 95.3%, while rent change was strong, with net effective rent growth close to 50% and cash rent growth around 29% during the quarter. These figures highlight the company’s ability to capture mark-to-market gains as older leases roll over.

Prologis also increased its full-year development starts outlook to as much as $3.25 billion at its share, with more than half of development activity tied to build-to-suit projects for large global customers. This approach reduces leasing risk while locking in long-term demand.
One of Prologis’ most important differentiators is how it is expanding beyond traditional warehouses. With 5.2 gigawatts of power either secured or in an advanced stage, Prologis is one of the largest owners of utility-fed power available for data centers, representing billions of dollars in long-term investment opportunity. This strategy ties Prologis directly to growth in cloud computing, AI workloads and digital infrastructure while leveraging its existing land bank and customer relationships.

Balance sheet strength further supports this growth. Prologis ended the quarter with an in-place cost of debt around 3.2%, an average debt maturity of more than eight years and broad access to global capital markets. This financial flexibility allows the company to invest through cycles without sacrificing long-term returns.

While there are some risks to consider with industrial real estate being influenced by global trade and economic conditions, these negatives are relatively limited when weighed against the company’s leasing momentum, embedded rent growth, and expanding development and data center platforms.

How Do Estimates Compare for Realty Income & Prologis?

The Zacks Consensus Estimate for Realty Income’s 2025 and 2026 sales implies year-over-year growth of 8.49% and 7.48%, respectively. The consensus mark for 2025 and 2026 funds from operations (FFO) per share suggests year-over-year growth of only 1.67% and 3.69%, respectively. Moreover, over the past two months, estimates for O’s 2025 FFO per share have been tweaked southward, while estimates for 2026 have been kept unchanged.

For Realty Income:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Prologis’ 2025 and 2026 sales calls for year-over-year growth of 8.72% and 6.30%, respectively. The consensus mark for 2025 FFO per share has remained unchanged over the past two months, while the same for 2026 has declined a tad to $5.80 and $6.08. However, the figures suggest a year-over-year increase of 4.32% and 4.72%, respectively. 

For Prologis:

Image Source: Zacks Investment Research

Price Performance and Valuation of O & PLD

Over the past six months, Realty Income shares have risen 4.5%, while Prologis stock has rallied 19.9%. In comparison, the S&P 500 composite has advanced 14.8% in the same time frame. 

Image Source: Zacks Investment Research

O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.38X, which is above its three-year median. 

Meanwhile, PLD is presently trading at a forward 12-month price-to-FFO of 21.37X, which is also above its three-year median of 20.86X. Both O and PLD carry a Value Score of D.

Image Source: Zacks Investment Research

Conclusion: PLD Has the Edge

Realty Income remains a high-quality REIT built for investors who prioritize steady income and low volatility. Its scale, diversification and disciplined approach provide confidence that cash flows will remain resilient over time. However, Prologis combines financial strength with exposure to powerful secular growth drivers in logistics, supply chains and digital infrastructure. With strong leasing activity, meaningful embedded rent growth and a growing data center opportunity, Prologis offers a clearer path to sustained long-term cash flow expansion. 

For investors choosing between the two, PLD emerges as the stronger stock to consider. Estimate revisions also suggest that Prologis stands out as the better REIT pick currently.

While PLD carries a Zacks Rank #2 (Buy), O has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.