Realty Income Is Better Than Simon Property After U.S. Credit Rating Downgrade

(10min)

Summary

  • Recent macroscopic uncertainties have culminated in the downgrade of the U.S. credit rating.
  • These developments have caused interest rates to rise, making the valuations of the overall REIT sector attractive.
  • Despite sector-wide attractive valuations, I urge caution and favor REITs like O with lower leverage and proven performance through economic cycles.
  • In addition, O trades at a historical discount and offers an unusually attractive dividend yield spread versus SPG, enhancing its value proposition.
  • I do much more than just articles at Envision Early Retirement: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

REIT, Real Estate Investment Trust Financial Concept. Businessman using laptop with REIT investment icons. property, finance charts, growth, mutual fund, investor, return, and income strategy.

O and SPG stock: Q1 earning reports met U.S. Credit rating

I last analyzed Realty Income (NYSE:O) in late April. That article was titled “Realty Income Q1 Preview: 7% Equity Bond In Disguise”. It rated O as a buy based on its

Join Envision Early Retirement to navigate such a turbulent market.

  • Receive our best ideas, actionable and unambiguous, across multiple assets.
  • Access our real-money portfolios, trade alerts, and transparent performance reporting.
  • Use our proprietary allocation strategies to isolate and control risks.

We have helped our members beat S&P 500 with LOWER drawdowns despite the extreme volatilities in both the equity AND bond market.

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.

This article was written by

9.77K Followers

Sensor Unlimited is an economist by training with a PhD, with a focus on financial economics. She is a quantitative modeler and for the past decade she has been covering the mortgage market, commercial market, and the banking industry. She writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets.

Sensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About O Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on O

Related Stocks

SymbolLast Price% Chg
SPG
--
O
--