Shares of Realty Income ( O -3.28%) were heading lower Wednesday in response to rising Treasury yields, which signaled that investors think that interest rates could go up in the Trump administration, or at least remain elevated. That condition would present two challenges for the real estate investment trust ( REIT ).

Healthy demand for Realty Income's properties and a diverse tenant base are likely to have benefited the company's Q3 earnings.

Realty Income will benefit from declining interest rates. Some of its tenants are struggling, but those concerns could be overblown. Its stock looks cheap, and its dividend looks attractive. Retail REITs like Realty Income buy up commercial properties ...