With a market cap of $52.2 billion, Realty Income Corporation (O) is a real estate investment trust (REIT) that acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients. The San Diego, California-located company is expected to unveil its Q1 2025 earnings after the market closes on Monday, May 5.

Ahead of this event, analysts expect REIT to post an AFFO of $0.99 per share, down 3.9% from $1.03 per share reported in the same quarter last year. The company has met or surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.

For fiscal 2025, analysts expect Realty Income to report an AFFO of $3.97 per share, a decline of 5.3% from $4.19 in fiscal 2024. However, its AFFO is expected to surge 11.1% year-over-year to $4.41 per share in fiscal 2026.

Shares of O have returned 9.7% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 5.5% rise. However, the stock lagged behind the Real Estate Select Sector SPDR Fund’s (XLRE) 11.8% gain during the same period.

Shares of O fell 1.9% the following day after it released its Q4 2024 results on Feb. 24. For the quarter, the company reported revenue of $1.3 billion, up 24.5% year-over-year. Adjusted Funds from Operations (AFFO) came in at $1.05 per share, marking a 4% increase from the prior-year quarter. In addition, Realty Income raised its monthly dividend by 1.3% to $3.17, up from $3.13 in fiscal 2024.

Analysts' consensus view on O is moderately optimistic, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, five suggest a "Strong Buy," one gives a "Moderate Buy," and 17 recommend a "Hold” rating. Its mean price target of $60.84 represents nearly a 4% premium to current price levels.