Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
Realty Income Corporation
Physical assets are 75.5% of total assets, a heavy footprint. Reported capex is 0.05x depreciation. Acquisitions sit outside that line, so a low ratio here is the landlord pattern rather than an aging building stock. ROIC is 2.2%, below an 8% cost-of-capital hurdle.
Real estate revenue is mostly rent, so fixed-asset turnover often sits around 0.05x to 0.15x. This name is at 0.10x.
Physical asset ratio
75.5%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
0.10x
Revenue per dollar of the physical asset base.
Capex / D&A
0.05x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
$38.79
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
1.45x
Price $56.08.
Fixed-charge coverage
1.10x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
7.3%
Latest free cash flow divided by current market cap ($53.06B).
ROIC
2.2%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 0.03x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 90.6% | 0.10x | 0.05x | $23.82 | 3.20x | $915.39M | 7.0% | 0.05x |
| 2019 | 89.3% | 0.09x | 5.87x | $26.24 | -3.47x | -$2.42B | 4.1% | 0.04x |
| 2020 | 90.5% | 0.09x | 0.04x | $26.90 | 0.15x | $1.09B | 4.0% | 0.05x |
| 2021 | 76.8% | 0.07x | 7.05x | $39.00 | -2.69x | -$5.01B | 2.1% | 0.03x |
| 2022 | 76.1% | 0.09x | 5.38x | $32.58 | -2.00x | -$6.42B | 2.6% | 0.03x |
| 2023 | 77.7% | 0.09x | 0.04x | $35.15 | 2.35x | $2.89B | 3.0% | 0.04x |
| 2024 | 75.9% | 0.10x | 0.05x | $31.70 | 1.95x | $3.45B | 3.3% | 0.04x |
| 2025 | 75.5% | 0.10x | 0.05x | $38.79 | 1.10x | $3.86B | 2.2% | 0.03x |
- The short-term debt line matched total current liabilities, so principal due uses the current portion of debt.
- The physical ratio uses the property line, which is larger than net corporate PP&E. Real estate portfolios are often carried there.
- Capex/D&A uses reported capital expenditures only. Property acquisitions sit in other investing cash flow, so this ratio does not capture portfolio growth.
- Reported free cash flow matched operating cash flow, so capex was subtracted.
Latest year inputs (2025)
Net PP&E: $54.83B
Inventory: $91.78M
Total assets: $72.80B
Goodwill: $4.93B
Intangibles: $91.78M
Liabilities: $32.67B
Tangible book: $35.10B
Shares: 904,786,324
Revenue: $5.75B
Capex: $131.80M
D&A: $2.52B
EBITDA: $3.60B
Interest: $1.14B
Short-term debt: $2.02B
Free cash flow: $3.86B
Operating income: $1.63B
Invested capital: $71.86B
Tax rate: 1.9%