Realty Income’s property values and rent rates are likely to benefit from inflation, despite concerns about more expensive debt. The stock, which has underperformed in the past, could be a good buy now. Core U.S. inflation rose by 0.3% in July, with a 2.7% trailing-12-month rate. Realty Income, a REIT with a net lease business model, stands to benefit from inflation as it owns a diversified portfolio of properties. However, high inflation could lead to increased borrowing costs, affecting the REIT’s profitability. Despite this, Realty Income has historically navigated challenging interest rate environments well.
Read more at Yahoo Finance: Inflation Is Ticking Upward. Should Realty Income Investors Be Worried?
