Realty Income Prices $800 Million Dual-Tranche Offering of Senior Unsecured Notes

Rhea-AI Summary

Realty Income (NYSE: O) has priced a dual-tranche offering of senior unsecured notes totaling $800 million. The offering consists of $400 million of 3.950% notes due 2029 and $400 million of 4.500% notes due 2033.

The 2029 notes were priced at 99.412% of principal with a 4.143% yield, while the 2033 notes were priced at 98.871% with a 4.685% yield. The combined notes have a weighted average tenor of 5.3 years and a weighted average yield of 4.414%. The proceeds will be used for general corporate purposes, including debt repayment, particularly the $550 million of 4.625% notes due November 2025.

The offering, managed by Wells Fargo Securities, Barclays, BofA Securities, Mizuho, and TD Securities, is expected to close on October 6, 2025.

Positive

• Strategic refinancing of upcoming debt maturity ($550M due November 2025)
• Successful pricing of large $800M dual-tranche offering in challenging market
• Weighted average yield of 4.414% demonstrates strong credit profile
• Extended debt maturity profile with 5.3-year weighted average tenor

Negative

• New notes carry higher interest rates compared to maturing 4.625% notes
• Slight discount to par value pricing indicates challenging market conditions

SAN DIEGO, Sept. 25, 2025 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced the pricing of a public offering of $400 million of 3.950% senior unsecured notes due February 1, 2029 (the "2029 notes"), and $400 million of 4.500% senior unsecured notes due February 1, 2033 (the "2033 notes" and, together with the 2029 notes, the "notes"). The public offering price for the 2029 notes was 99.412% of the principal amount for an effective yield to maturity of 4.143%, and the public offering price for the 2033 notes was 98.871% of the principal amount for an effective yield to maturity of 4.685%. Combined, the notes have a weighted average tenor of approximately 5.3 years and a weighted average yield to maturity of 4.414%.

The net proceeds from this offering will be used for general corporate purposes, which may include, among other things, the repayment or repurchase of our indebtedness (including the approximately $550.0 million of outstanding 4.625% notes due 2025, which mature on November 1, 2025, and/or borrowings under our revolving credit facilities and commercial paper programs), foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, and the expansion and improvement of certain properties in our portfolio.

This offering is expected to close on October 6, 2025, subject to the satisfaction of customary closing conditions.

The active joint book-running managers for the offering are Wells Fargo Securities, Barclays, BofA Securities, Mizuho, and TD Securities.

A copy of the prospectus supplement and prospectus, when available, related to this offering may be obtained by contacting: Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, Email: wfscustomerservice@wellsfargo.com, by telephone (toll free) at 1-800-645-3751; Barclays Capital Inc., c/o Broadridge Financial Solutions 1155 Long Island Avenue, Edgewood, NY 11717, Email: barclaysprospectus@broadridge.com, by telephone (toll-free) at 1-888-603-5847; BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attention: Prospectus Department, by telephone at 1-800-294-1322; Mizuho Securities USA LLC, 1271 Avenue of the Americas, New York, New York 10020, by telephone (toll-free) at 1-866-271-7403; and TD Securities (USA) LLC, 1 Vanderbilt Avenue, 11th Floor, New York, New York 10017, by telephone (toll free) at 1-855-495-9846.

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act of 1933, as amended. These securities are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of these securities in any state or other jurisdiction where, or to any person to whom, the offer, solicitation, or sale of these securities would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Realty Income
Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the world's leading companies^®. Founded in 1969, we serve our clients as a full-service real estate capital provider. As of June 30, 2025, we have a portfolio of over 15,600 properties in all 50 U.S. states, the U.K., and seven other countries in Europe. We are known as "The Monthly Dividend Company^®" and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since our founding, we have declared 663 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats^® index for having increased our dividend for over 30 consecutive years.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimated," "anticipated," "expect," "believe," "intend," "continue," "should," "may," "likely," "plans," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business and portfolio and are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in the real estate business including our clients' solvency, client defaults under leases, increased client bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics,; the loss of key personnel; the outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Actual plans and results may differ materially from what is expressed or forecasted and expectations and forecasts made in the forward-looking statements may not materialize. We do not undertake any obligation to update forward-looking statements or to publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.

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SOURCE Realty Income Corporation

FAQ

What is the size and structure of Realty Income's (NYSE: O) new notes offering?

Realty Income priced an $800 million dual-tranche offering, consisting of $400 million of 3.950% notes due 2029 and $400 million of 4.500% notes due 2033.

What are the yields on Realty Income's (O) new senior unsecured notes?

The 2029 notes yield 4.143% to maturity, while the 2033 notes yield 4.685% to maturity, with a weighted average yield of 4.414%.

How will Realty Income use the proceeds from its $800M notes offering?

The proceeds will be used for general corporate purposes, including repayment of $550M of 4.625% notes due November 2025, debt repurchases, property development, acquisitions, and portfolio improvements.

When will Realty Income's (NYSE: O) new notes offering close?

The offering is expected to close on October 6, 2025, subject to customary closing conditions.

Who are the managers for Realty Income's notes offering?

The active joint book-running managers are Wells Fargo Securities, Barclays, BofA Securities, Mizuho, and TD Securities.