Realty Income: The Slowing Growth Is Worrying

Realty Income is downgraded from Strong Buy to Buy due to decelerating AFFO growth despite operational stability and raised guidance. O's AFFO growth slowed from 6.6% in Q1 to an implied 1.4% in Q4, with deployment timing cited as a key factor. Strategic use of private capital, notably the KKR JV, reduces reliance on public equity and supports acquisition funding at favorable rates.