Realty Income’s February Milestone: Dividend Record Date and Tax Details Released

Shareholders of Realty Income Corporation are marking a significant date on the calendar. The real estate investment trust (REIT) has reached the ex-dividend date for what is its 667th consecutive monthly distribution. This event coincides with the company's publication of the tax classification for its 2025 dividends, providing essential data for investor tax planning. Furthermore, the market anticipates the firm's year-end financial report, scheduled for release later this month.

The company, a member of the S&P 500 Dividend Aristocrats index, has not only maintained but consistently increased its shareholder payout for more than 31 years. The upcoming monthly cash dividend of $0.27 per share is payable on February 13 to stockholders of record as of today's date. This distribution annualizes to a rate of $3.24 per share.

2025 Dividend Tax Breakdown Clarified

On January 29, Realty Income provided the final tax status report for all dividends paid throughout the 2025 calendar year. The total distribution amounted to $3.2170 per share.

This sum is categorized as follows:
* 66.4% is classified as taxable dividend income, equating to $2.1351 per share.
* 33.6% is designated as a non-taxable return of capital, totaling $1.0819 per share.

Should investors sell immediately? Or is it worth buying Realty Income?

This return-of-capital component reduces the investor's cost basis in the shares and is not immediately subject to income tax. Such a structure is common among REITs due to their specific operational model and distribution requirements.

Strategic Use of Recent Capital Raise

In a separate financial move earlier this year, Realty Income strengthened its balance sheet. The completion of a $862.5 million convertible note offering in early January, carrying an interest rate of 3.5% and maturing in 2029, provided net proceeds of approximately $845.5 million after issuance costs.

Management allocated these funds strategically:
* A primary use was the scheduled redemption of $500 million in 5.05% senior notes that matured in mid-January.
* Approximately $102 million was directed toward repurchasing around 1.8 million shares of the company's own stock.
* The remaining capital is earmarked for general corporate purposes, which include property acquisitions, development projects, and commitments under its credit facilities.

Fourth-Quarter and Full-Year Earnings on Deck

Investors are awaiting the company's comprehensive financial update. Realty Income is set to announce its results for the fourth quarter and the full fiscal year 2025 after the market closes on February 24. A conference call with investors and analysts will follow, beginning at 11:00 p.m. Central European Time. The REIT's extensive portfolio currently consists of more than 15,500 commercial properties located across the United States, the United Kingdom, and seven additional European nations.