Realty Income vs. Stag Industrial: One Monthly Dividend REIT Is Leaving the Other in the Dust

By Vandita Jadeja Published Apr 23, 10:13AM EDT

Quick Read

Realty Income (O) generated $1.48B in Q4 revenue, beating estimates by 27.34%, while STAG Industrial (STAG) achieved a 100% EPS beat with $0.44 versus the $0.22 consensus on 24% full-year cash rent growth across 14.4 million square feet.
Realty Income committed $950M to European investments at a 7.2% yield and expanded to Mexico, while STAG executed $449.1M in 2025 acquisitions with 69.2% of 2026 leasing already pre-leased at 20% cash rent spreads.
Industrial rent growth is driving STAG’s valuation momentum, but Realty Income’s global scale, diversified asset portfolio, and 113-consecutive-quarter dividend raises position it to weather rising interest expenses and market volatility better than STAG’s pure-play U.S. warehouse focus.

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Realty Income vs. Stag Industrial: One Monthly Dividend REIT Is Leaving the Other in the Dust — © Courtesy of Netflix

Realty Income (NYSE: O | O Price Prediction) and STAG Industrial (NYSE: STAG) both reported fourth quarter earnings and paid monthly dividends. One is a global REIT with retail, industrial, and gaming assets. The other is a U.S. industrial pure-play. Their results tell two different stories about where income real estate is heading.

Industrial Rent Growth Carries STAG. Scale and Diversification Carries Realty Income.

STAG delivered the sharper quarter. EPS came in at $0.44 against a consensus of $0.22, a 100% beat. The engine was genuine leasing momentum: full-year Cash Rent Change hit 24% across 121 leases and 14.4 million square feet. That is real pricing power, not financial engineering. Same Store Cash NOI grew 5.4% in Q4 and 4.3% for the full year.

Business Driver	Realty Income (O)	STAG Industrial (STAG)
Main Growth Engine	Global acquisitions, private capital vehicles	Industrial leasing spreads, U.S. warehouse demand
Q4 Same Store Growth	1.1% same store rent	5.4% Same Store Cash NOI
Occupancy	98.9%	97.2%
EPS vs. Estimate	Miss (-16.05%)	Beat (+100%)

Realty Income’s quarter looked different on the surface. EPS of $0.32 missed the $0.381 consensus by 16.05%. But revenue told a better story: $1.48 billion against a $1.16 billion estimate, a 27.34% beat. Portfolio occupancy held at 98.9%, and the rent recapture rate reached 104.9% on re-leased properties.

A wide-angle outdoor shot of a modern strip mall on a clear, sunny day. The buildings on the left have light beige and brick facades with large glass windows and gray awnings. A paved road with yellow crosswalk markings runs down the center, lined with black streetlights, small trees, and various bushes and ornamental grasses on either side. Several cars are parked along the road, and the road recedes into the distance with more commercial buildings visible under a bright blue sky.

One Bets on Global Scale. The Other Doubles Down on U.S. Warehouses.

Realty Income is building large-scale global operations. European investments totaled $950 million in Q4 at a 7.2% yield. The company closed an $800 million preferred equity stake in Blackstone-affiliated CityCenter assets and expanded into Mexico with a $200 million industrial portfolio commitment. Its GIC partnership and U.S. Core Plus fund attracted over $3 billion in combined commitments.

STAG keeps focus tight. Full-year 2025 acquisitions totaled 13 buildings across 3.8 million square feet for $449.1 million at a 6.5% cash cap rate. Q4 deals spanned Chicago, Raleigh, Fresno, Kansas City, Nashville, and Cincinnati.

The acquisition pipeline stands at $3.6 billion across 169 buildings and 30.5 million square feet. Crucially, 69.2% of expected 2026 leasing is already addressed at a 20% Cash Rent Change, giving STAG near-term visibility.

Strategic Lens	Realty Income (O)	STAG Industrial (STAG)
Geographic Scope	U.S., Europe, Mexico	U.S. only
Asset Mix	Retail, Industrial, Gaming, Other	Single-tenant industrial only
2026 Investment Target	~$8.0 billion	$3.6B pipeline
Key Vulnerability	Rising interest expense, impairment provisions	Rising rates, declining cash balance

Vadi Fuoco / Shutterstock.com

The Next Test Is Whether Rent Spreads or Scale Wins in 2026

For Realty Income, the 2026 watch is execution on $8 billion investment volume target while managing full-year 2025 interest expense that already rose to $1.13 billion from $1.02 billion in 2024.

Impairment provisions deserve attention: $471.3 million for the full year 2025 is a number income investors should not ignore. The dividend remains reliable. Realty Income has now raised its dividend for 113 consecutive quarters, with the current monthly payment at $0.2705 per share.

For STAG, the question is whether industrial demand holds through a slower macro environment. Cash on hand fell to $14.91 million at quarter end, down 58.91% year over year, and the term loan rate step-up from 1.70% to 3.94% adds pressure.

STAG’s monthly dividend has grown consistently, with the most recent payment at $0.387 per share on the March 20, 2026 ex-dividend date. Watch whether STAG’s 20% pre-leasing rent spreads hold if industrial vacancy rises nationally.

On price performance, Realty Income has pulled ahead year-to-date. O is up 16.96% in 2026 versus STAG’s 9.3% gain over the same period. Over one year, the gap flips: STAG is up 25% against O’s 17.9%.

Realty Income vs. STAG: What Each Profile Suits

STAG’s operational story is compelling. Leasing spreads are strong, the pipeline is visible, and pure-play industrial focus removes complexity. U.S. warehouse demand staying elevated through 2026 would support STAG’s growth-within-income profile.

Realty Income’s scale, dividend consistency, and diversification are harder to replicate. The dividend yield sits near 5% with 27 years of uninterrupted monthly payments. The 2026 AFFO per share guidance of $4.38 to $4.42 is modest but reliable growth backed by a platform spanning continents and asset classes.

Realty Income’s income stability profile contrasts with STAG’s rate sensitivity and macro exposure, which is paired with sharper near-term leasing momentum.

About the Author Vandita Jadeja →

Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.