Aureus
AExcellent

Realty Income Corporation(O)

A

Financial data as of Dec 31, 2025Improving · Real Estate

FCF Margin68.9%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$4.0B
Revenue$5.7B
Net Cash-$28.9BNet debt position
Debt / FCF7.4xElevated debt burden
Current Ratio1.42Adequate short-term liquidity
YoY FCF Growth+10.4%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (68.9%, 7.4x; 4.2x sector-adjusted)
→
+0.5Modest YoY FCF growth (10.4% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (68.9%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Heavy debt position ($28.9B net debt, 7.4x FCF)
  • High debt-to-FCF ratio (7.4x)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin68.9%
Net Margin18.4%
Operating CF Margin69.5%
CapEx Ratio0.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$28.9BNet debt position
Debt / FCF7.4xElevated debt burden
Current Ratio1.42Adequate liquidity
Debt / Equity0.74Low leverage

Quarterly FCF Trend

+10.4% YoYImproving (+10.4%)

Free cash flow per quarter

Sector Comparison — Real Estate

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameRealty Income Corporation
SectorReal Estate
Free Cash Flow$4.0B
Revenue$5.7B
Net Income$1.1B
Operating Cash Flow$4.0B
Capital Expenditure$0
FCF Margin68.9%
Cash Conversion Rate—
Net Margin18.4%
Total Debt$29.3B
Total Cash$434.8M
Net Cash-$28.9B
Current Ratio1.42
Debt / Equity0.74
Debt / FCF7.4x
YoY FCF Growth+10.4%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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