European Portfolio Snapshot
REALTY
INCOME
Rising Short-Term Yields Have Historically Been Correlated with Realty Income Outperformance
In 2015, the Fed began raising its benchmark interest rate, which continued through 2018(1)
TOTAL RETURNS:
YEAR 1 OF FED RATE HIKE CYCLE(2)
13.1%
13.0%
7.7%
S&P 500 RMZ
TOTAL RETURN
PERFORMANCE
During the Fed's prior rate
hike cycle, Realty Income
outperformed the S&P 500
and the MSCI US REIT
Index (RMZ) over the 3-
year duration of the rate
hike cycle
TOTAL RETURNS:
3-YEAR DURATION OF FED RATE HIKE CYCLE(3)
44.4%
30.6%
13.0%
S&P 500Ⓡ RMZ
+0.24
+0.35
+0.39
S&P 500Ⓡ
RMZ
COMPARATIVE CORRELATION:
TOTAL RETURN VS. 2-YEAR UST YIELD SINCE 2009 (4)
Historically, Realty Income's returns have been
positively correlated to short-term yields
(1) During the prior rate hike cycle, the Fed initiated its initial rate hike in December 2015 (0.25% -0.50%) with its final hike occurring in December 2018 (2.25% -2.50%).
(2) Total returns between 12/17/2015 and 12/17/2016.
(3) Total returns between 12/17/2015 and 12/19/2016.
(4) Calculated from 12/31/2009 through 6/30/2022.
9View entire presentation