Realty Income Completes €1.3 Billion Senior Note Offering

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.
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