Realty Income’s Dividend Resilience Tested by Interest Rate Pressures

Realty Income, long celebrated as a cornerstone for income-focused investors, now faces a critical test of its market dominance. The real estate investment trust (REIT) finds itself navigating a complex environment where its proven strategy of consistent dividend growth clashes with the harsh reality of elevated interest rates. The central question for shareholders is whether the company’s operational strength can eventually overcome these macroeconomic headwinds.

The true measure of a company’s dividend sustainability lies in its ability to generate sufficient cash flow. For Realty Income, this is quantified through Adjusted Funds from Operations (AFFO). During the first six months of 2025, the company reported an AFFO of $2.11 per share. Over this same period, dividend distributions totaled approximately $1.60 per share. This... Read more...