Is O (Realty Income Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, O is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.00% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (0.72% vs ≤33% threshold).

Realty Income, famously known as 'The Monthly Dividend Company ,' is an S&P 500 Real Estate Investment Trust (REIT) that owns a massive portfolio of over 6,500 commercial properties. Instead of operating the businesses inside, they act as the landlord for major retail chains like Walgreens , 7-Eleven, and Dollar General, collecting rent through long-term lease agreements. This simple business model allows them to generate consistent cash flow, which they pass on to shareholders as monthly dividends. For Muslim investors, Realty Income is currently classified as Halal, passing all four AAOIFI screening metrics. The company’s core business involves tangible assets—real estate—and generating revenue through permissible rental contracts rather than interest-based lending. Because it passes the business activity screen and financial ratio tests, it represents a compliant way to gain exposure to the US commercial real estate market without directly owning property. Financially, the company shows excellent adherence to Islamic finance principles, with a Debt-to-Market Cap ratio of 0.0% and interest income sitting at effectively zero. This is rare for many large corporations, which often rely heavily on interest-bearing debt or cash deposits that generate impermissible interest. The low level of cash and interest-bearing securities (only 0.7% of market cap) further solidifies its position as a clean investment choice. Investors should, however, remain aware that while the company itself is compliant, a small portion of its tenants may sell prohibited goods (like alcohol or pork in convenience stores). Most scholars permit investing in REITs as long as the primary business is property leasing and not the direct sale of haram items, but conservative investors may choose to purify a small percentage of their dividends to account for this indirect exposure. Realty Income Corporation operates in the Real Estate sector under the REIT - Retail industry and is headquartered in San Diego, CA, US. The company is led by CEO Sumit Roy and employs approximately 468 people.

O was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. O passed 4 of these 4 screens.

O has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

O was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.