Realty Income concludes exchange offer for Spirit Notes

NEW YORK – Realty Income Corporation (NYSE: NYSE:), known as The Monthly Dividend Company®, has announced the completion of its exchange offers for Spirit Realty, L.P.’s notes, with an impressive turnout from note holders. As of the expiration date on Friday, a significant portion of each series of Spirit Notes had been tendered, with percentages ranging from 96.91% to 99.31%.

This exchange is part of a broader strategy involving the amendment of the indenture governing the Spirit Notes to remove most restrictive covenants. The final settlement of these exchange offers is expected to coincide with the anticipated closing of the merger on January 23, 2024, subject to meeting customary closing conditions.

The success of the exchange offers was determined by the consent of at least a majority of the outstanding aggregate principal amount of each series of Spirit Notes, with each series voting separately. The merger, as detailed in the prospectus filed with the SEC, is a non-waivable condition for the completion of these offers.

The dealer manager for the exchange offers was Wells Fargo Securities, LLC, with D.F. King & Co., Inc. serving as the exchange agent and information agent.

Realty Income, a member of the S&P 500 Dividend Aristocrats® index, has a long-standing history of delivering consistent monthly dividends, supported by its extensive real estate portfolio. The company’s properties, leased to commercial clients, form the backbone of its dividend payments.

This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein.

InvestingPro Insights

As Realty Income Corporation (NYSE: O) completes its strategic exchange offers, investors may find additional value in understanding the company’s financial health and market performance. With a substantial market capitalization of $40.99 billion, Realty Income stands as a prominent player in the Retail REITs industry. The company’s gross profit margin is remarkably high at 92.18% for the last twelve months as of Q3 2023, demonstrating its efficiency in generating revenue relative to the cost of goods sold. This impressive margin may be a testament to the company’s strong portfolio of commercial properties and its ability to manage operational costs effectively.

InvestingPro Tips suggest that Realty Income has maintained its appeal to income-focused investors, having raised its dividend for 27 consecutive years and currently offering an attractive dividend yield of 5.45%. This consistent performance in dividend payments underscores the company’s commitment to shareholder returns. Moreover, the company has experienced a strong return over the last three months, with a price total return of 16.23%, highlighting the positive investor sentiment and market confidence in its business model.

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