Realty Income's Stock May Be Undervalued Despite Strong Fundamentals

Realty Income's stock has underperformed the market despite its strong fundamentals, indicating it may be undervalued.

The company's properties are concentrated in resilient retail sectors not vulnerable to e-commerce disruption.

Management is adeptly managing debt loads, raising capital at spreads above estimated WACC.

Valuation looks reasonable at only an 8% premium to peers based on forward FFO.

Dividend yield remains high at 5.6%, providing income while awaiting a potential reversion to fair value.