If You Invested in Spirit Rlty Cap Inc (SRC)

Spirit Realty Capital, Inc. (historically NYSE: SRC) was a net-lease real estate investment trust (REIT) that focused on owning single-tenant, operationally essential commercial real estate. The company is now part of Realty Income Corporation following the completion of an all-stock merger. The common stock of the combined company trades on the New York Stock Exchange under the symbol O, and the final day of trading for Spirit’s common and preferred stock on the NYSE was January 22, 2024.

Before the merger, Spirit Realty Capital operated as a net-lease REIT, primarily investing in properties subject to long-term leases where tenants were responsible for key operating expenses. According to company disclosures, Spirit focused on single-tenant properties that were considered operationally essential to its tenants’ businesses. This approach was intended to support stable occupancy and rental income over time.

As described in multiple company communications, Spirit’s portfolio included retail, industrial and other commercial properties across the United States. As of June 30, 2023, Spirit reported a diverse portfolio of 2,064 retail, industrial and other properties across 49 states, leased to 345 tenants operating in 37 industries, with its properties approximately 99.8% occupied. As of September 30, 2023, Spirit reported 2,037 properties across 49 states, leased to 338 tenants in 37 industries, with occupancy of approximately 99.6%. These figures illustrate the breadth of its tenant base and the emphasis on maintaining a high level of occupancy.

Spirit’s business model centered on long-term lease agreements with commercial tenants. The company described its assets as single-tenant, operationally essential real estate subject to long-term leases, which is a common structure in the net-lease REIT sector. Under this model, tenants typically bear many property-level costs, while the REIT receives contractual rent over extended lease terms. Spirit’s communications highlighted its focus on properties that are important to tenants’ operations, which can be a key factor in lease stability.

In October 2023, Realty Income Corporation and Spirit Realty Capital announced a definitive merger agreement under which Realty Income would acquire Spirit in an all-stock transaction. The transaction was valued at an enterprise value of approximately $9.3 billion for Spirit, based on the joint announcement. Spirit shareholders were to receive 0.762 newly issued Realty Income common shares for each Spirit common share. The merger was subject to customary closing conditions, including approval by Spirit stockholders.

On January 19, 2024, Spirit stockholders approved all proposals necessary for closing the merger with Realty Income. Following this approval and the satisfaction of closing conditions, Realty Income announced on January 23, 2024 that it had closed the merger with Spirit Realty Capital in an all-stock transaction. At the closing, Spirit common stockholders became entitled to receive 0.762 shares of Realty Income common stock for each share of Spirit common stock held, and all of Spirit’s outstanding shares of Series A Cumulative Redeemable Preferred Stock were exchanged for shares of Realty Income Series A Cumulative Redeemable Preferred Stock, which trade under the symbol "O PR" on the NYSE.

As a result of this merger, Spirit Realty Capital no longer trades as an independent company under the SRC ticker. Instead, former Spirit equity interests are reflected in Realty Income’s common and preferred shares. Realty Income has described the acquired Spirit portfolio as highly complementary to its existing holdings and has indicated that the combination enhances the size, scale and diversification of its net-lease real estate platform.

Prior to the merger, Spirit’s public communications emphasized its status as a net-lease REIT investing in single-tenant, operationally essential real estate assets under long-term leases. The company reported that its portfolio included retail, industrial and other property types, and that it maintained high occupancy levels. Spirit also regularly declared quarterly cash dividends on its common stock and on its 6.00% Series A Cumulative Redeemable Preferred Stock, consistent with its REIT structure.

For investors researching the historical SRC stock, it is important to recognize that the ticker represents Spirit Realty Capital before its acquisition by Realty Income. Ongoing performance, dividends and portfolio information for the combined business are now reported by Realty Income Corporation under the symbol O, while SRC serves as a historical reference to Spirit’s standalone operations and capital markets activity prior to January 23, 2024.

Historical business focus

According to Spirit’s public descriptions, the company:

• Operated as a net-lease REIT listed on the New York Stock Exchange under the symbol SRC.
• Primarily invested in single-tenant, operationally essential real estate assets subject to long-term leases.
• Maintained a diverse portfolio of retail, industrial and other properties across 49 states.
• Leased properties to hundreds of tenants across dozens of industries, with reported occupancy levels near 100% as of mid and late 2023.

These characteristics defined Spirit’s role within the broader finance and insurance sector under the "Other Financial Vehicles" industry classification, reflecting its structure as a specialized real estate investment vehicle.

Post-merger context

Following the closing of the merger, Realty Income’s announcements have continued to reference Spirit in the context of dividend tax allocation for Spirit’s historical common and preferred stock distributions. Realty Income has provided final calculations of the dividend tax status for Spirit’s 2023 and 2024 common stock distributions and for Spirit’s 6.00% Series A Cumulative Redeemable Preferred Stock distributions in 2023. These communications underscore that Spirit’s legacy securities and distributions are now administered and reported within Realty Income’s broader corporate structure.

For current information on the underlying real estate portfolio and ongoing dividend policy after the merger, investors would look to Realty Income’s disclosures, while SRC remains relevant for understanding Spirit Realty Capital’s historical operations, portfolio composition and corporate actions prior to its combination with Realty Income.