Realty Income prices $1.25 billion in senior notes

SAN DIEGO – Realty Income Corporation (NYSE: NYSE:), known as The Monthly Dividend Company®, has priced a dual-tranche offering totaling $1.25 billion in senior unsecured notes, the company announced Monday. The offering comprises $450 million of 4.750% notes due February 15, 2029, and $800 million of 5.125% notes due February 15, 2034.

The 2029 Notes were priced at 99.225% of their principal amount, resulting in a semi-annual yield to maturity of 4.923%. The 2034 Notes were priced at 98.910% of their principal amount, yielding 5.265% to maturity. Collectively, the notes have an average tenor of roughly 8.3 years and a weighted average semi-annual yield to maturity of 5.142%, with a weighted average coupon rate of 4.990%.

Realty Income intends to use the net proceeds for general corporate purposes. These may include repaying or repurchasing company debt, such as borrowings under Realty Income’s revolving credit facility and commercial paper programs; foreign currency swaps or other hedging instruments; and investing in property development, redevelopment, acquisitions, business combinations, as well as property expansions and improvements.

The offering is slated to close on January 16, 2024, subject to customary closing conditions. Wells Fargo Securities, BBVA (BME:), Citigroup, Mizuho, and TD Securities are acting as the active joint book-running managers for the offering.

Realty Income is an company and a member of the S&P 500 Dividend Aristocrats® index, structured as a real estate investment trust (REIT). The firm’s monthly dividends are backed by cash flow from over 13,250 real estate properties under long-term net lease agreements. Realty Income has declared 642 consecutive common stock monthly dividends since its inception 55 years ago and has increased its dividend 123 times since its public listing in 1994.

This press release contains forward-looking statements and is based on a press release statement. The offering of these securities is made only by means of the prospectus included in the Registration Statement and the prospectus supplement related to the offering.

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