Realty Income: The Bad News Isn't as Bad as It Seems. 3 Things Investors Should Know.

An increasing number of retailers have fallen on hard times in some way. The list includes Rite Aid, Red Lobster, Walgreens (NASDAQ: WBA), Dollar Tree (NASDAQ: DLTR), At Home, and Big Lots (NYSE: BIG). For landlords, the problems here -- from outright bankruptcies to plans to close underperforming stores -- mean lost rent.Realty Income (NYSE: O) is no different from any other landlord in this regard. But even though it has exposure to all the retailers noted above, it should sail through the rent problem without skipping a beat. Here are three key facts you need to know to understand why this real estate investment trust (REIT) is so well positioned.Realty Income is the largest net lease REIT. Net leases require tenants to pay for most property-level operating costs. Net lease properties are generally only rented out to one tenant, so each individual property is a pretty big risk. Not only would a vacancy leave the property without any tenant in it, but the property's upkeep might have declined if that tenant was in a weak financial state. There's good reason for investors to have concerns about troubled tenants within the net lease framework.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool