Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price55.54 USD
Fair value46.17
Ethical score10.0/100
RatingAVOID
Our investment reviews on this name
2026-09-08Read Markdown63.17-12.1% to today ✓
2026-08-07Read Markup62.70-11.4% to today
2026-07-02Read Distribution60.84-8.7% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Realty Income holds its Markdown at $55.54. Consolidating, no directional conviction, held for 1 days.
As held on the ledger · 2026-09-25
Phase
Markdown · caution
Quantitative state
Consolidating, no directional conviction, held for 1 days
Price at the screen
$55.54
Valuation
40.54 trailing · 35.76 forward price to earnings
Values screen
FAIL· score 10.0
Beta
0.71
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
40.31%
Below 33%
Interest-bearing debt is 40.3% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
1.10%
Below 33%
Cash held in interest-bearing accounts and securities is 1.1% of assets, under the one-third limit.
Pass
Receivables
2.04%
Below 49%
Money owed to the company is 2.0% of assets, under the 49% limit.
Pass
Revenue purity
0.00%
Below 5%
Only 0.0% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Realty Income's business is in a permissible area, but its interest-bearing debt is about 40% of the company, well over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
What the Numbers Say It Is Worth
The Fair Value Range
Our framework reads AVOID: it trades above our $46.17 fair value estimate, narrow competitive moat, 9.60% revenue growth.
Fair value range in USD, drawn from the 2026-09-25 screen. The gold marker is the market price at the same screen. The price runs 16.9% above the base estimate.
Third-party analyst targets: 20 covering, consensus Buy. The average target sits +22% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-25 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Premium Retail REITs With Heavy Debt Loads
Picture a landlord with fifteen thousand retail sites across America, collecting rent from big brands every month. Realty Income looks like a reliable income machine on the surface, yet our fair value sits at 47.58 against the current 65.71 price. The narrow moat, 3 percent return on equity and 38.7 times forward earnings give us no reason to step in.
Revenue growth of 12 percent and a 19 percent profit margin sound steady, yet the business fails our ethical screen on its debt ratio. Analysts may cluster around a 68 target and a buy rating, but that does not change the fact that the shares trade at a 28 percent premium to what the numbers support.
Cyclical retail exposure adds another layer of risk if consumer spending slows. We pass. Analysis, not advice.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
O trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown$55.54-12.1%Entry 6
The framework reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 12.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 15%. Our forward projection puts the odds of a 10% gain over the next month near 9%. The street (20 analysts) rates it buy, with a mean price target of $68.
2026-09-08Markdown · changed$63.17+0.7%Entry 5
The framework has shifted from markup to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 0.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 15%. Our forward projection puts the odds of a 10% gain over the next month near 9%. The street (20 analysts) rates it buy, with a mean price target of $68.
2026-08-07Markup · changed$62.70+3.1%Entry 4
The framework has shifted from distribution to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 3.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 15%. Our forward projection puts the odds of a 10% gain over the next month near 9%. The street (20 analysts) rates it buy, with a mean price target of $68.
2026-07-18Distribution$60.84+0.0%Entry 3
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 15%. Our forward projection puts the odds of a 10% gain over the next month near 9%. The street (20 analysts) rates it buy, with a mean price target of $68.
2026-07-03Distribution$60.84+0.0%Entry 2
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Distribution$60.84Entry 1
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
