Cigna earnings beat by $0.04, revenue topped estimates
Realty Income Corporation (NYSE:O), a real estate investment trust with a market capitalization of $51.4 billion and an impressive 92.85% gross profit margin according to InvestingPro, has entered into a Fourth Amended and Restated Credit Agreement providing $4 billion in unsecured multicurrency revolving credit facilities. This new agreement, effective today, replaces the previous $3 billion agreement established on April 28, 2022.
The new credit facilities are divided into two segments: a $2 billion facility maturing in two years and another $2 billion facility maturing in four years, both with options for six-month extensions. These facilities also feature an accordion expansion capability that could increase the total capacity to $5 billion, subject to additional lender commitments.
Interest rates for borrowings under the new agreement will vary based on the currency of the borrowing, with applicable margins adjusted according to the company’s credit ratings. Currently, the applicable margin stands at 0.725% per annum, reflecting Realty Income’s investment-grade ratings.
In addition to the credit agreement, Realty Income’s subsidiary, Realty Income U.S. Core Plus Aggregator II, LP, secured a separate credit agreement consisting of a $1 billion unsecured revolving credit facility and a $380 million unsecured delayed draw term loan. This subsidiary credit facility is initially guaranteed by Realty Income Corporation, with the potential for the guarantee to be released upon the admittance of third-party investors into the fund.
The subsidiary’s credit agreement includes similar terms to the parent company’s, with interest rates based on SOFR plus an applicable margin determined by the company’s or the subsidiary’s credit ratings or leverage ratio. The current applicable margin for the subsidiary’s facilities is also 0.725% per annum due to Realty Income’s guarantee. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.33, supporting its ability to manage these credit facilities effectively.
Both agreements contain customary covenants, financial reporting requirements, and other standard events of default.
This financial restructuring reflects Realty Income’s strategic efforts to maintain liquidity and financial flexibility. The information provided is based on a press release statement filed with the SEC.
In other recent news, Realty Income Corporation has reported its fourth-quarter 2024 earnings, revealing that its earnings per share (EPS) of $0.23 fell short of the analyst forecast of $0.37. However, the company’s revenue exceeded expectations, reaching $1.28 billion compared to the anticipated $1.27 billion. Realty Income has also expanded its credit facilities to $5.38 billion, including a new $1.38 billion facility for its U.S. Core Plus Fund, LP. Additionally, the company plans to issue $600 million in notes due in 2035, with the transaction expected to close on April 10, 2025. The company recently recast its revolving credit facility, aiming to increase borrowing capacity and extend maturity dates. Analysts have noted Realty Income’s robust portfolio occupancy rate of 98.7% and its forecast for 2025’s AFFO per share to range between $4.22 and $4.28. These developments are part of Realty Income’s broader financial strategy to support its growth and investment initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.