Realty Income expands credit facilities to $5.38 billion

SAN DIEGO - Realty Income Corporation (NYSE: O), known as The Monthly Dividend Company®, has successfully recast and expanded its multi-currency unsecured credit facilities to a total of $5.38 billion. With a market capitalization of $51.4 billion and an impressive 92.85% gross profit margin, the company continues to demonstrate its financial strength. This expansion includes a new $1.38 billion credit facility dedicated to the Realty Income U.S. Core Plus Fund, LP, the company’s open-end, perpetual life private capital vehicle. According to InvestingPro analysis, the company maintains strong liquidity with assets exceeding short-term obligations.

The updated credit facilities for Realty Income Corporation feature a $4.0 billion revolving credit with an option to increase to $5.0 billion, subject to lender commitments. This is divided into two $2.0 billion tranches with initial maturity dates of April 29, 2027, and April 29, 2029. The facilities include extension options and borrowing rates at 72.5 basis points over SOFR for U.S. Dollar borrowings. A total of 25 lenders, with Wells Fargo Bank as the Administrative Agent, are participating in these facilities. InvestingPro data shows the company maintains a healthy current ratio of 1.33, reflecting strong financial management.

The U.S. Core Plus Fund’s $1.38 billion credit facilities consist of a $1.0 billion revolving credit facility and a $380 million delayed draw term loan, with the potential to expand up to $2.0 billion. The revolving credit facility and the term loan have initial maturities of April 29, 2029, and April 29, 2028, respectively, also with extension options. Twenty-three lenders are participating in the Fund’s credit facilities, with Wells Fargo Bank again serving as the Administrative Agent.

Jonathan Pong, Realty Income’s Chief Financial Officer and Treasurer, expressed gratitude for the continued support from lending partners, highlighting the importance of these facilities in supporting the company’s growth initiatives.

Realty Income is a real estate investment trust that invests in commercial real estate and is a member of the S&P 500 Dividend Aristocrats® index. The company boasts a portfolio of over 15,600 properties across the U.S., the U.K., and Europe. Its U.S. Core Plus Fund, established in late 2024, owns 184 industrial and retail properties in 33 states as of March 31, 2025.

This news is based on a press release statement from Realty Income Corporation and reflects the company’s current financial maneuvers in expanding its credit capacity to support its growth and investment strategies.

In other recent news, Realty Income Corp reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.23, which fell short of analyst forecasts of $0.37. However, the company’s revenue exceeded expectations, reaching $1.28 billion compared to the forecast of $1.27 billion. Realty Income also announced a strategic financial move to restructure its revolving credit facility, aiming to increase borrowing capacity to $5.35 billion and extend the maturity date. Additionally, the company has entered into an agreement to sell $600 million of 5.125% notes due in 2035, with the transaction expected to close in April 2025.

Realty Income maintains a strong portfolio occupancy rate of 98.7% and has provided guidance for 2025 with an AFFO per share expected between $4.22 and $4.28. The company plans to invest $4 billion in 2025, focusing on both U.S. and international markets. In another development, Orion Properties Inc., formerly known as Orion Office REIT Inc., reported a net loss of $32.8 million for the fourth quarter of 2024 but highlighted significant leasing activity and strategic acquisitions. Orion Properties has shifted its focus to dedicated use assets with an office component, aiming for a more stable portfolio.

These recent developments reflect Realty Income’s ongoing strategies to manage its real estate assets and financial operations, while Orion Properties continues to adjust its investment strategy amidst financial challenges.

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