Realty Income Company Announces Pricing of $500 Million Senior Unsecured Notes Offering
SAN DIEGO, Aug. 19, 2024 /PRNewswire/ — Realty Income Company (Realty Income, NYSE: O), The Monthly Dividend Company®, recently announced the pricing of a public offering of $500 million of 5.375% senior unsecured notes due 2054 (the “Notes”). The offering price for the Notes was 98.374% of the principal amount for an effective semi-annual yield to maturity of 5.486%.
The net proceeds from this offering will be used for general corporate purposes, which may include, among other things, the repayment or repurchase of Realty Income’s indebtedness (including borrowings under Realty Income’s revolving credit facility and commercial paper programs), foreign currency swaps or other hedging instruments, the development, redevelopment, and acquisition of additional properties, acquisition or exchange transactions, redemptions of Realty Income’s outstanding preferred stock, and the expansion and enhancement of certain properties in our portfolio.
This offering is expected to close on August 26, 2024, subject to the satisfaction of customary closing conditions.
The active joint book-running managers for the offering are Barclays, J.P. Morgan, RBC Capital Markets, TD Securities, and Wells Fargo Securities.
A copy of the prospectus supplement and prospectus, when available, related to this offering may be obtained by contacting: Barclays Capital Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue, Edgewood, NY 11717, [email protected], 1-888-603-5847; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk, 3rd Floor, Facsimile: 212-834-6081; RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281, Toll-Free Number: (866) 375-6829, Fax: (212) 428-6308, Email: [email protected], ATTN: Syndicate Operations; TD Securities (USA) LLC, 1 Vanderbilt Avenue, 11th Floor, New York, New York 10017, Attention: DCM – Transaction Advisory, by phone (toll-free) at 1-855-495-9846; and Wells Fargo Securities, LLC, 608 Second Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, Email: [email protected], by phone (toll-free) at 1-800-645-3751.
These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act of 1933, as amended. These securities are only offered by the prospectus included in the Registration Statement and the prospectus supplement related to the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which, or to any person to whom, the offer to sell, solicitation, or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Realty Income
Realty Income (NYSE: O), an S&P 500 company, is a real estate partner to the world’s leading businesses. Founded in 1969, we invest in diversified commercial real estate and have a portfolio of 15,450 properties in all 50 U.S. states, the U.K., and 6 other countries in Europe. We are known as “The Monthly Dividend Company®,” and have a mission to provide stockholders with monthly dividends that grow over time. Since our inception, we have declared 650 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats® index, having increased our dividend for the last 30 consecutive years.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words “estimated,” “anticipated,” “expect,” “believe,” “intend,” “continue,” “should,” “may,” “likely,” “plans,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business and portfolio (including our growth strategies and our intention to acquire or dispose of properties including geographies, timing, partners, customers, and terms); releases, re-development and speculative development of properties and expenditures related thereto; timing of operations and results; the declaration of operating results, strategy, plans, and the intentions of management; settlement of shares of common stock sold pursuant to forward sale agreements under our at-the-market program; dividends, including the amount, timing, and payment of dividends related thereto; and trends in our business, including trends in the market for long-term leases of freestanding, single-tenant properties. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which could cause our actual results to differ materially from anticipated results. Realty Income Corporation, a leading real estate investment trust, faces a multitude of factors that can significantly impact its performance and results. One of the key components that can influence the company’s outcomes is its continued qualification as a real estate investment trust (REIT). This qualification comes with certain tax advantages and requirements that can affect Realty Income Corporation’s financial position.
In addition to its REIT status, Realty Income Corporation is also subject to various external factors such as changes in the domestic and international economic landscape, competition in the real estate market, fluctuations in interest and currency rates, inflation, and access to capital markets. These factors can all have a significant impact on the company’s financial health and overall performance.
Furthermore, the real estate industry itself presents inherent risks such as tenant defaults, bankruptcies, environmental liabilities, illiquidity of assets, and potential damages from natural disasters. Realty Income Corporation must navigate these risks to ensure the stability and growth of its real estate portfolio.
Moreover, external events such as epidemics, pandemics, acts of terrorism, and war can also disrupt Realty Income Corporation’s operations and financial results. The company must be prepared to address these unforeseen challenges and mitigate their impact on its business.
Additionally, Realty Income Corporation’s recent merger with Spirit Realty Capital, Inc. is expected to bring about certain benefits. However, the success of this merger and the realization of anticipated benefits will depend on various factors, including integration efforts, market conditions, and overall performance.
In conclusion, Realty Income Corporation operates in a dynamic and challenging environment, where it must navigate various risks and uncertainties to achieve its strategic objectives. Investors should be aware of these factors and exercise caution when evaluating the company’s performance and prospects. Forward-looking statements should be interpreted with caution, as actual results may vary from what is expressed or forecasted.
