Why Realty Income Stock Significantly Underperformed the S&P 500 in 2024

Shares of Realty Income (NYSE: O) declined by 7% in 2024, according to data provided by S&P Global Market Intelligence. That greatly underperformed the S&P 500 (SNPINDEX: ^GSPC), which rallied 23.3% last year. The real estate investment trust (REIT) was still in the red after adding in its high-yielding dividend (negative 2.1% total return compared to the S&P 500's 25% return, when adding reinvested dividends). Here's a look at what weighed on the REIT last year, and whether it can bounce back in 2025.Realty Income had a solid year in 2024, all things considered. The diversified REIT was on track to grow its adjusted funds from operations (FFO) by about 5%, an increase from its initial expectations. The company closed its highly accretive $9.3 billion acquisition of fellow diversified REIT Spirit Realty in early January. In addition, it bumped its full-year investment guidance from $2 billion to $3 billion (which doesn't include the Spirit deal). Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool