BUZZ-Mizuho raises Realty Income's PT on new acquisition strategy

Reuters03-11
BUZZ-Mizuho raises Realty Income's PT on new acquisition strategy

** Mizuho raises price target on commercial real estate investment trust Realty Income Corp O.N to $68 from $60; reiterates "neutral" rating

** New PT represents a 4.8% upside to stock's last close

** Brokerage notes the REIT will split its U.S. and European acquisitions evenly, financing them through both itself and new private capital fund, which brings in an extra 75–100 basis points in management fees

** Adds, fund will hold higher‑growth, lower‑cap‑rate more expensive assets, while co keeps higher‑yield, immediately accretive assets on its own balance sheet to lift earnings right away

** Median PT of 24 brokerages covering the stock is $68 - data compiled by LSEG

** As of last close, shares up 15.1% YTD

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))

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