Realty Income Recasts and Expands Credit Facilities to $5.38 Billion

Rhea-AI Summary

Realty Income has successfully expanded its credit facilities to $5.38 billion, including a new $1.38 billion facility for its U.S. Core Plus Fund. The company's main revolving credit facilities now total $4.0 billion with potential expansion to $5.0 billion, split into two $2.0 billion tranches maturing in 2027 and 2029.

The credit facilities feature favorable terms, with U.S. Dollar borrowing rates at 72.5 basis points over SOFR and a facility commitment fee of 12.5 basis points. A consortium of 25 lenders supports these facilities, led by Wells Fargo Bank as Administrative Agent.

The newly established U.S. Core Plus Fund facility comprises a $1.0 billion revolving credit facility and a $380 million delayed draw term loan, with expansion potential to $2.0 billion. The Fund, launched in late 2024, currently manages 184 industrial and retail properties across 33 states, focusing on generating dependable income through diversified U.S. net lease investments.

Positive

• Expanded total credit facilities to $5.38 billion, enhancing liquidity position
• New $1.38 billion credit facility established for U.S. Core Plus Fund, showing growth in private capital business
• Strong lender support with 25 banks participating in main facilities and 23 in Fund facilities
• Favorable borrowing rate of 85 basis points over SOFR for USD borrowings, reflecting strong A3/A- credit ratings
• Portfolio includes over 15,600 properties across multiple countries
• Consistent dividend performance with 658 consecutive monthly dividends and 30 years of increases

Negative

• Credit facilities subject to obtaining lender commitments for accordion expansion
• Additional debt could increase financial leverage and interest expenses
• Exposure to interest rate fluctuations through SOFR-based borrowing rates

Insights

REIT Financial Analyst

Realty Income enhances financial flexibility with $5.38B credit facility expansion, signaling strong banking relationships and future growth capacity.

Realty Income's credit facility expansion represents a significant enhancement to the company's liquidity position, increasing total capacity to $5.38 billion. The structure includes $4.0 billion in revolving credit facilities for the parent company with accordion features allowing expansion to $5.0 billion, plus a new $1.38 billion facility dedicated to their private capital vehicle.

The favorable pricing terms - just 72.5% basis points over SOFR with a 12.5% facility commitment fee - reflect Realty Income's strong A3/A- credit ratings. This translates to all-in pricing of 85% basis points over SOFR for USD borrowings, positioning them competitively in the current interest rate environment.

The staggered maturity dates (extending to 2027 and 2029) with additional six-month extension options provide long-term stability to their capital structure. The participation of 25 lenders in the main facilities demonstrates robust banking relationships and market confidence in Realty Income's business model and growth trajectory.

Most notably, the $1.38 billion dedicated facility for their U.S. Core Plus Fund (launched in late 2024) signals institutional commitment to this newer growth channel, which already owns 184 properties across 33 states. This strategic allocation of capital resources enables Realty Income to pursue diversified growth opportunities while maintaining the financial discipline that supports their 658 consecutive monthly dividends.

Includes Establishment of $1.38 Billion Credit Facility for U.S. Core Plus Fund

SAN DIEGO, April 29, 2025 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, announced that it has closed on the recast and expansion of aggregate $5.38 billion multi-currency unsecured credit facilities. Included in the total capacity is a newly established $1.38 billion unsecured credit facility for Realty Income U.S. Core Plus Fund, LP, Realty Income's open-end, perpetual life private capital vehicle.  

"We are grateful for the support of our longtime lending partners and their continued confidence in the Realty Income platform. The recast includes the introduction of liquidity for our U.S. Core Plus Fund, demonstrating our robust access to capital to drive our growth initiatives," said Jonathan Pong, Realty Income's Chief Financial Officer and Treasurer.

$4.0 Billion Revolving Credit Facilities for Realty Income Corporation

Realty Income's revolving credit facilities provide for updated capacity of $4.0 billion with an accordion expansion feature up to $5.0 billion, which is subject to obtaining lender commitments. The revolving credit facilities are bifurcated into two $2.0 billion tranches, which initially mature on April 29, 2027 and April 29, 2029, respectively, before giving effect to two six-month extension options for each facility. Pursuant to the terms of the revolving credit facilities, the company's current A3 / A- credit ratings provide for a borrowing rate of 72.5 basis points over SOFR for U.S. Dollar borrowings, with a facility commitment fee of 12.5 basis points, for all-in drawn pricing of 85 basis points over SOFR for U.S. Dollar borrowings.

A total of 25 lenders are participating in the Realty Income revolving credit facilities, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC, JPMorgan Chase Bank, N.A., BofA Securities, Inc., TD Bank, N.A, and Mizuho Bank, Ltd. are serving as Joint Bookrunners.

$1.38 Billion Credit Facilities for Realty Income U.S. Core Plus Fund, LP

A subsidiary of Realty Income's U.S. Core Plus Fund established the Fund's $1.38 billion capacity credit facilities, which consists of a $1.0 billion revolving credit facility and a $380 million delayed draw, unsecured term loan with an accordion expansion feature up to $2.0 billion, which is subject to obtaining lender commitments. The revolving credit facility initially matures on April 29, 2029, before giving effect to two six-month extension options, and the $380 million delayed draw term loan initially matures on April 29, 2028, before giving effect to two six-month extension options.

A total of 23 lenders are participating in the Fund credit facilities, including Wells Fargo Bank, National Association, as the Administrative Agent. Wells Fargo Securities, LLC and TD Bank, N.A., are serving as Joint Bookrunners.

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 invest in diversified commercial real estate and have a portfolio of over 15,600 properties in all 50 U.S. states, the U.K., and six 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 658 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats^® index for having increased our dividend for the last 30 consecutive years. Additional information about the company can be found at www.realtyincome.com.

About Realty Income U.S. Core Plus Fund, LP

In late 2024, Realty Income established Realty Income U.S. Core Plus Fund, LP, an open-end, perpetual life private capital vehicle. Benefitting from the size, scale and expertise of Realty Income's platform, the Fund aims to partner with institutional investors in acquiring and managing a portfolio of diversified U.S. net lease investments and seeks to generate dependable income. As of March 31, 2025, the Fund owned 184 industrial and retail properties across 33 states nationally.

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 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; growth strategies including our private capital fund business; liquidity and cash flows; and the intentions of management. 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); continued volatility and uncertainty in the credit markets and broader 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, and potential damages from natural disasters; impairments in the value of our real estate assets; changes in domestic and foreign income tax laws and rates; property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which may transfer or limit our control of the underlying investments; epidemics or pandemics, including measures taken to limit their spread, the impacts on us, our business, our clients, and the economy generally; 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 and acquisitions; 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 operating results may differ materially from what is expressed or forecasted in this press release and forecasts made in the forward-looking statements discussed in this press release might not materialize. We do not undertake any obligation to update forward-looking statements or 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.

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SOURCE Realty Income Corporation

FAQ

How much did Realty Income (O) expand its credit facilities in April 2025?

Realty Income expanded its credit facilities to $5.38 billion total, including $4.0 billion in revolving credit facilities for the corporation and $1.38 billion for its U.S. Core Plus Fund.

What are the terms of Realty Income's (O) new $4 billion revolving credit facilities?

The $4 billion facilities are split into two $2.0 billion tranches maturing in April 2027 and April 2029, with two six-month extension options each. The borrowing rate is 72.5 basis points over SOFR for USD borrowings, plus a 12.5 basis point facility fee.

What is Realty Income's U.S. Core Plus Fund and how much credit does it have?

Realty Income's U.S. Core Plus Fund is an open-end, perpetual life private capital vehicle established in late 2024. It received $1.38 billion in credit facilities, including a $1.0 billion revolving facility and $380 million delayed draw term loan.

How many properties does Realty Income (O) own in 2025?

Realty Income owns over 15,600 properties across all 50 U.S. states, the U.K., and six other European countries.

How many consecutive monthly dividends has Realty Income (O) paid?

Realty Income has declared 658 consecutive monthly dividends and has increased its dividend for 30 consecutive years, making it a member of the S&P 500 Dividend Aristocrats index.