Is Realty Income Stock Halal?

Is Realty Income Stock Halal?

How much of Realty Income’s revenue comes from haram?

Realty Income earns its revenue by renting out its portfolio of 6,500 properties to businesses. 

Realty Income’s clients include Walgreens, 7-Eleven, Dollar General, FedEx, LA Fitness, CVS, and several other commercial clients. 

Practical Islamic Finance concludes:

None of Realty Income’s revenue comes from anything inherently haram.

Does Realty Income rely on interest to operate?

for period ended
Fiscal year
Fiscal year
Interest Income
Total Revenue$442,804$1,651,625$1,651,625
Interest Expense $73,075$309,336$309,336
Total Expenses$309,300$1,326,117$1,086,364
Interest Income / Revenue
Interest Expense / Total Expense23.63%23.33%28.47%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

From the consistently elevated levels of Interest Expense / Total Expense, Riba is relied upon in Realty Income’s operations.

What is Realty Income’s Environmental, Social, and Governance (ESG) impact?


According to Realty Income, the company collaborates with its clients to install on-site solar and electric vehicle charging stations at its properties.


Realty Income has a high Glassdoor rating of 4.2 out of 5.0 from current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.


No notable governance highlights.

Practical Islamic Finance concludes:

Realty Income has a net positive ESG impact.

Comfort Rating

From Realty Income’s business, financial, and ESG reviews, Practical Islamic Finance rates Realty Income stock as:

Uncomfortable to invest in from a Halal perspective.

Justification for Our Rating

Realty Income’s consistent elevated use of interest to run its operations suggest a systemic reliance on interest which causes Practical Islamic Finance to be uncomfortable investing in it.



Realty Income 2020 10-K  

Environmental Responsibility 

Realty Income Reviews 

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