Realty Income (O) risk factors, FY2024 10-K

Risks Related to Our Business and Industry

1. 01In order to grow we need to continue to acquire investment properties. The acquisition of investment properties may be subject to competitive pressures
2. 02If we fail to qualify as a REIT, it could adversely impact us, and the amount of dividends we are able to pay would decrease, which could adversely affect the market price of our capital stock and could adversely affect the value of our debt securities
3. 03Distribution requirements imposed by law limit our flexibility
4. 04Future issuances of equity securities could dilute the interest of holders of our common stock
5. 05We may acquire properties or portfolios of properties through tax deferred contribution transactions, which could result in stockholder dilution and limit our ability to sell or refinance such assets
6. 06We intend to incur additional indebtedness in the future, including borrowings under our $4.25 billion unsecured revolving credit facility and our $3.0 billion commercial paper programs
7. 07Real estate ownership is subject to particular conditions that may have a negative impact on our revenue
8. 08Real estate property investments are illiquid. We may not be able to acquire or dispose of properties when desired or on favorable terms
9. 09Our acquisition of additional properties may have a significant effect on our business, liquidity, financial position and/or results of operations
10. 10As a property owner, we may be subject to unknown environmental liabilities
11. 11We are subject to risks and liabilities in connection with forming and attracting third-party investment in our anticipated fund business, investing in new or existing co-investment ventures or funds, and managing properties through our anticipated fund business or other co-investment ventures
12. 12management fee structures and other incentive fees, on terms that are beneficial to us, and the inherent conflicts that may exist in allocating investment opportunities effectively between us and the fund or such other co-investment ventures
13. 13We are subject to additional risks from our international investments and debt
14. 14We may engage in development, speculative development, or expansion projects or invest in new asset classes, which would subject us to additional risks that could negatively impact our operations
15. 15Property taxes may increase without notice
16. 16We may face extensive regulations from gaming and other regulatory authorities regarding current and future gaming properties
17. 17An uninsured loss or a loss that exceeds the policy limits on our properties could subject us to lost capital or revenue on those properties
18. 18Compliance with the Americans with Disabilities Act of 1990 and fire, safety, and other regulations may require us to make unanticipated expenditures that could adversely impact our results of operations
19. 19Our business is subject to risks associated with climate change
20. 20Increased scrutiny and changing expectations from regulators and other stakeholders regarding sustainability practices and reporting could impact our business practices, cause us to incur additional costs and expose us to new risks
21. 21Our charter contains restrictions upon ownership of our common stock
22. 22The value of certain of our investment in real property may be reduced as the result of the expiration or loss of local tax abatements, tax credit programs, or other governmental incentives
23. 23The market value of our capital stock and debt securities could be substantially affected by various factors
24. 24Litigation risks could affect our business
25. 25We depend on key personnel
26. 26Natural disasters, terrorist attacks, other acts of violence or war, or other unexpected events may affect the value of our debt and equity securities, the markets in which we operate and our results of operations
27. 27We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could harm our business
28. 28Volatility in market and economic conditions may impact the accuracy of the various estimates used in the preparation of our financial statements and footnotes to the financial statements
29. 29Inherent limitations of internal controls over financial statements, disclosure controls and safeguarding of assets may adversely impact our financial condition and results of operations
30. 30Our business operations may not generate the cash needed to make distributions on our capital stock or to service our indebtedness
31. 31Disruptions in the financial markets could affect our ability to obtain financing on reasonable terms and have other adverse effects on us, the market price of our common stock, and may make it more difficult or costly for us to raise capital
32. 32Inflation (including prolonged inflationary periods) may adversely affect our results of operations, financial condition and liquidity
33. 33We are subject to complex and changing laws, regulations, policies, and executive orders, which exposes us to potential liabilities, increased costs and other adverse effects on our business