Realty Income Corp to Issue $600M in Notes Due 2035

Realty Income Corporation (NYSE:O), a real estate investment trust (REIT) with a market capitalization of $51 billion, announced on Monday that it has entered into an agreement to sell $600 million of 5.125% notes due in 2035. The transaction is scheduled to close on April 10, 2025, pending customary closing conditions. According to InvestingPro data, the company maintains a strong financial health score of 3.08, rated as "GREAT" by analysts.

The San Diego-based company, which operates under Maryland jurisdiction, has engaged a syndicate of underwriters led by Wells Fargo (NYSE:WFC) Securities, LLC, BofA Securities, Inc., and others for the issuance. The notes will be available on the New York Stock Exchange under various symbols, including O34 for the newly announced notes. The company’s strong liquidity position is evidenced by a current ratio of 1.33, indicating its ability to meet short-term obligations.

This move by Realty Income Corp (BVMF:R1IN34) is part of its broader strategy to manage its portfolio of real estate assets, which includes acquiring and disposing of properties, as well as re-leasing and redevelopment. The company specializes in single-tenant commercial properties, with a portfolio that spans various clients and geographies.

The press release also contained forward-looking statements regarding the company’s expectations for business growth, operational strategies, and financial outcomes. However, it cautioned that these statements are subject to various risks and uncertainties, including market conditions, interest rates, and the overall economic environment.

Realty Income Corp emphasized that while they anticipate certain future developments and plans, actual results could differ materially due to factors such as changes in tax laws, currency fluctuations, client solvency, and broader financial market volatility.

The company has a history of providing long-term leases to commercial clients and is known for its monthly dividend payments to shareholders, maintaining dividend payments for an impressive 32 consecutive years. Currently offering a 5.64% dividend yield, with an impressive gross profit margin of 92.85%, the issuance of these notes is part of Realty Income’s financial strategy to ensure continued growth and stability. For deeper insights into Realty Income’s financial health and performance metrics, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to detailed Pro Research Reports covering 1,400+ top US stocks.

Investors and stakeholders are reminded that forward-looking statements are not guarantees of future performance and are advised to consider the risks and uncertainties that could affect the company’s operations and financial results.

The information reported is based on a press release statement and filings with the U.S. Securities and Exchange Commission.

In other recent news, Realty Income Corp announced its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.23, which fell short of analyst expectations of $0.37. However, the company’s revenue exceeded forecasts, reaching $1.28 billion against a predicted $1.27 billion. Realty Income also reported plans to restructure its existing revolving credit facility, aiming to increase borrowing capacity to $5.35 billion in unsecured, multicurrency borrowings. Meanwhile, Orion Properties Inc. reported a net loss of $32.8 million for Q4 2024, compared to a $16.2 million loss in the same period of 2023, as the company shifts focus to dedicated use assets. Despite the loss, Orion completed significant leasing activity and acquired a new facility in California for $34.6 million. The company also declared a quarterly cash dividend of $0.02 per share for Q1 2025. Both companies are navigating strategic changes and financial adjustments as they aim to position themselves for future growth.

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