Realty Income Secures £900M Term Loan to Enhance Financial Stability and Flexibility

Realty Income Strengthens Financial Position with Major Term Loan

Realty Income Corporation announces the successful closure of a £900 million Sterling-denominated unsecured term loan, a strategic move aimed at bolstering its financial stability and flexibility. This loan, which matures in January 2028 with a possible twelve-month extension, is designed to refinance existing Sterling-denominated borrowings from their substantial $4.0 billion multicurrency revolving credit facility. By proactively addressing upcoming loan maturities, Realty Income effectively positions itself to manage its debt obligations while optimizing its capital structure.

The funds from this term loan will primarily be utilized to pre-fund the refinancing of a multi-currency term loan set to mature in January 2026, which includes a significant £705 million Sterling tranche. Such financial maneuvers underscore Realty Income's commitment to maintaining a robust balance sheet amid a dynamic market environment. With its strong A3/A- credit ratings, the company secures favorable borrowing terms, specifically a rate of 80 basis points above the Sterling Overnight Index Average (SONIA). This financial prudence allows Realty Income to safeguard its operations and continue providing reliable returns to investors.

To further enhance its financial strategy, Realty Income has executed two-year variable-to-fixed interest rate swaps, effectively stabilizing its weighted average interest rate at 4.3% for the term of the loan. Jonathan Pong, the company’s Executive Vice President and CFO, highlights the importance of lender support in facilitating this transaction, which not only improves financial flexibility but also mitigates risks associated with fluctuating interest rates. With a solid foundation of over 15,500 properties across the U.S., U.K., and European markets, Realty Income continues to uphold its reputation as The Monthly Dividend Company®, having declared 665 consecutive dividends since its establishment in 1969.

In addition to strengthening its liquidity and refinancing capabilities, Realty Income's recent loan agreement reflects its long-term strategic vision. The diverse portfolio, spanning various sectors and regions, positions the company well to navigate economic uncertainties. The partnership with a strong consortium of lenders, including Toronto Dominion (Texas) LLC and JPMorgan Chase, further solidifies Realty Income’s credibility within the financial community.

As Realty Income continues to focus on operational excellence and shareholder value, this recent financial move signals a proactive approach to capital management, ensuring the company is well-prepared for future growth and market challenges.