Evercore ISI Lifts Realty Income (O) Price Target while Maintaining Neutral Outlook

Realty Income Corporation (NYSE:O) is included among the 13 Best Long-Term Dividend Stocks to Invest in Right Now.

On February 26, Evercore ISI raised its price recommendation on Realty Income Corporation (NYSE:O) to $65 from $62. It maintained an In Line rating on the stock. The firm updated its estimates following the company’s Q4 results, reflecting adjustments based on recent performance and outlook.

During the Q4 2025 earnings call, CEO Sumit Roy said that the company reported AFFO per share of $1.08 for the fourth quarter and $4.28 for the full year. These results were supported by strong portfolio fundamentals, including 98.9% occupancy and rent recapture of 103.9%. Roy said the company remained active on the investment front. Realty Income invested $2.4 billion in the fourth quarter alone. This included an $800 million perpetual preferred investment in Las Vegas CityCenter, made in partnership with Blackstone. For the full year, the company deployed $6.3 billion at an initial cash yield of 7.3%. Investment-grade tenants accounted for 30% of acquisition cash income, reflecting a continued focus on quality.

At the same time, the company sold 425 properties for $744 million as part of its effort to strengthen overall asset quality. Roy highlighted the company’s proactive approach to risk management. He noted that early asset sales tied to At Home, completed before its Chapter 11 filing, helped limit exposure and preserve value.

Roy also discussed the company’s international expansion. Realty Income entered the Mexico market through partnerships with GIC and Hines and committed $200 million toward acquiring an industrial portfolio. He added that the company formed a $1.5 billion joint venture with GIC focused on U.S. industrial build-to-suit properties. The venture’s first transaction was a $58.5 million acquisition in Dallas.

He said Realty Income’s strategy continues to evolve. The company is combining its operating platform with partnership-driven capital to support long-term growth and expand its global reach.

Realty Income Corporation (NYSE:O) operates as a real estate investment trust. The company focuses on acquiring and managing freestanding commercial properties that generate rental income through long-term net lease agreements.