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Realty Income Spending $503 Million on 84 Properties

Today, Realty Income (NYSE: O  ) announced it has purchased 84 single-tenant properties for approximately $503 million from Inland Diversified Real Estate Trust.

Realty Income, a real estate firm that owns more than 3,800 properties, noted in its  press release that the move to purchase the properties will be financed with approximately $350 million in cash and the remainder will be financed through the assumption of debt.

The properties acquired span across 22 states and include 16 tenants in 12 different industries. The portfolio consists of 100% net-leased properties that include primarily retail, industrial, and distribution locations. The average lease term of the properties currently stands at 13.7 years.

Realty Income noted the transaction is expected to close in the first quarter of next year, but also added the transaction "is subject to certain closing conditions, and it is possible that the company will not acquire some or all of these properties, or that the timing of the closing will be delayed."

Realty Income has been on a buying spree this year, and through the first nine months of the year it had invested almost $1.4 billion in new properties, in addition to the acquisition of American Realty Capital Trust in January of this year for $3.2 billion.

In October, Realty Income also issued 9,775,000 shares of common stock, and highlighted that the $378 million generated from the offering "will be used to repay borrowings under the company's $1.0 billion acquisition credit facility, which were, and will be, used to fund real estate acquisitions." 


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9/28/2016 10:27 AM
O $68.35 Up +0.17 +0.25%
Realty Income CAPS Rating: ****