The business behind the dividend
| Measure | O | Median | Formula |
|---|---|---|---|
| Return on equity | 2.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 1.8% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $3.45bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $3.86bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 20.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 18.4% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.63x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 1.08x | 4.43x | Operating income ÷ interest expense |
| Current ratio | — | — | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 3.77x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Current ratio — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 2.7% | 2.2% | 2.6% | 3.0% | 1.4% | 3.6% | 4.5% | 4.5% | 4.3% | 4.7% | 3.0% |
| Return on capital employed | 1.8% | 1.5% | 1.8% | 2.1% | 1.0% | 2.1% | 2.8% | — | — | — | 1.8% |
| Operating margin | 20.1% | 17.7% | 22.8% | 27.4% | 18.9% | 25.0% | 29.8% | — | — | — | 22.8% |
| Net margin | 18.4% | 16.3% | 21.4% | 26.0% | 17.3% | 24.0% | 29.3% | 27.4% | 26.2% | 28.6% | 24.0% |
| Debt to equity | 0.63x | 0.58x | 0.56x | 0.50x | 0.50x | 0.75x | 0.64x | 0.66x | — | 0.59x | 0.59x |
| Cash conversion | 3.77x | 4.15x | 3.39x | 2.95x | 3.68x | 2.82x | 2.45x | 2.59x | 2.75x | 2.53x | 2.82x |
How it compares in real estate
Among the 46 real estate companies here measured on funds from operations, Realty Income pays out less than 5 of them. The median for that group is 65.5%, against this company’s 85.8%.
Closest on funds from operations
- CubeSmart (CUBE) 80.6%
- Extra Space Storage (EXR) 81.3%
- Iron Mountain (IRM) 81.5%
- Americold Realty Trust (COLD) 88.0%
Same sector and same denominator, so the figures are comparable. All 50 in real estate →