10 Best Real Estate Stocks to Buy According to Billionaires

4. Realty Income Corporation (NYSE:O)

Number of Billionaire Investors: 11

Number of Hedge Fund Holders: 36

Realty Income Corporation (NYSE:O) is a real estate partner to the world’s leading companies. The company’s expansion into Europe offers numerous potential benefits. It enables geographical diversification, reducing its dependence on any single market and potentially offsetting regional economic risks. This diversification can result in a more stable and resilient income stream over time. The European market can provide opportunities for higher cap rates in comparison to the saturated US market. Realty Income Corporation (NYSE:O) has been able to expand the average acquisition cap rates via investments in Europe.

Also, the private capital fund initiative by Realty Income Corporation (NYSE:O) can provide numerous advantages. It mainly addresses the challenge of accessing significant amounts of capital for the purposes of continued growth. By the creation of evergreen vehicle, Realty Income Corporation (NYSE:O) can improve its cost of capital over the long run, which remains important for REIT’s performance and ability to make acquisitions. The company’s deep access to capital, global reach for proprietary acquisition opportunities, and track record using predictive analytics tools in a bid to improve portfolio management capabilities demonstrate the inherent advantages of the company’s unique business model.

Parnassus Investments, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:

“Realty Income Corporation (NYSE:O) is poised to benefit from lower interest rates. Because its commercial tenants are mostly on 10-year leases, the stock’s steady dividend stream is attractive in the current environment of slow deceleration in the economy with rates coming down. In this favorable backdrop, the company also continues to execute well.”