Realty Income Completes €1.3 Billion Senior Note Offering

Author: Logan Wright Updated: 06-11-2025 04:11 PM

Realty Income Completes Major Offering of Senior Unsecured Notes

Realty Income Corporation, known as The Monthly Dividend Company, has successfully priced a public offering of dual-tranche euro-denominated senior unsecured notes, amounting to €1.3 billion. This offering consists of €650 million in 3.375% senior unsecured notes maturing in 2031 and €650 million in 3.875% senior unsecured notes maturing in 2035. This strategic move underscores Realty Income's robust positioning within the market.

Details of the Offering

The 2031 notes were priced at 99.568% of the principal amount, indicating an effective annual yield to maturity of 3.456%. Meanwhile, the 2035 notes were priced at 99.552% of the principal amount, which translates to an effective annual yield to maturity of 3.930%. Together, these notes exhibit a weighted average tenor of approximately 8.0 years and a combined yield of 3.693%. Such favorable terms highlight Realty Income's appeal in a competitive landscape.

Planned Use of Proceeds

The net proceeds from this offering are earmarked for general corporate purposes. These funds may facilitate a range of activities including the repayment or repurchase of existing indebtedness. This encompasses borrowings from revolving credit facilities and commercial paper programs, in addition to supporting foreign currency swaps and other hedging instruments. Moreover, Realty Income plans to invest in the development, redevelopment, and acquisition of properties to enhance its extensive portfolio.

Closing and Management Team

This significant offering is expected to close soon, pending the fulfillment of customary closing conditions. The active joint book-running managers for this transaction include notable financial institutions such as BNP PARIBAS, BBVA, Citigroup, RBC Capital Markets, and Wells Fargo Securities. Their involvement signals strong institutional confidence in Realty Income’s financial strategies.

About Realty Income Corporation

Founded in 1969, Realty Income Corporation operates as an S&P 500 company that invests heavily in diversified commercial real estate. As of early 2025, Realty Income boasts a remarkable portfolio consisting of over 15,600 properties across various locations, ensuring a spread of risk and opportunity. Renowned for its reliability, Realty Income has established a firm reputation as 'The Monthly Dividend Company', dedicated to providing dependable monthly dividends that grow over time. Notably, the company has maintained an impressive streak of 660 consecutive monthly dividend declarations and is recognized as a member of the S&P 500 Dividend Aristocrats index. This status is attributable to its commitment to raising dividends consistently for over 30 years.

Frequently Asked Questions

What is Realty Income Corporation's primary business focus?

Realty Income Corporation primarily invests in diversified commercial real estate and is recognized for providing reliable monthly dividends to its shareholders.

What are the terms of the recently announced note offering?

The offering consists of €650 million in 3.375% senior unsecured notes due in 2031 and €650 million in 3.875% senior unsecured notes due in 2035.

How will the proceeds from the note offering be utilized?

The proceeds will be used for general corporate purposes, including repaying existing debt and funding property acquisitions or developments.

When is the closing date for this offering?

The offering is expected to close soon, subject to normal closing conditions being met.

Why is Realty Income known as 'The Monthly Dividend Company'?

The nickname stems from the company's commitment to providing consistent and growing monthly dividend payments to its shareholders.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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