Realty Income Announces Commencement of Common Stock Public Offering

Rhea-AI Summary

Realty Income Corporation (NYSE: O) announced the start of an underwritten public offering of 10,500,000 shares of common stock, with an option for underwriters to purchase an additional 1,575,000 shares. Proceeds will be utilized, along with cash and borrowings, to fund property acquisitions worth approximately $676.8 million in the U.S. and U.K. As of January 8, 2021, property acquisitions totaled approximately $807.5 million. Remaining proceeds will support general corporate purposes, including debt repayment and working capital.

Positive

• Commencement of a public offering of 10.5 million shares, potentially raising significant capital.
• Intended use of proceeds includes funding property acquisitions valued at approximately $676.8 million, indicating growth strategy.

Negative

• Potential dilution of existing shares due to the new public offering.
• Uncertainty around property acquisitions may impact completion and pricing, leading to financial risks.

SAN DIEGO, Jan. 11, 2021 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company^®, today announced that it has commenced an underwritten public offering of 10,500,000 shares of common stock. The company also plans to grant the underwriters a 30-day option to purchase up to 1,575,000 additional shares of common stock. The joint book-running managers for the offering are BofA Securities, Morgan Stanley, Wells Fargo Securities and Citigroup.

The company intends to use net proceeds from the offering, along with available cash and additional borrowings as necessary, to fund property acquisitions. As of January 8, 2021, the company had entered into agreements or letters of intent to acquire additional U.S. and U.K. properties with an aggregate estimated purchase price of approximately $676.8 million. Moreover, from January 1 through January 8, 2021, the company has acquired properties with an aggregate purchase price of approximately $130.7 million, which, when combined with the properties under agreement or letter of intent as of January 8, 2021, equals an aggregate estimated purchase price of approximately $807.5 million.

Any remaining net proceeds will be used for general corporate purposes and working capital, which may include additional acquisitions, developments or expansions and/or repayment of borrowings under the company's $3.0 billion revolving credit facility and/or the company's $1.0 billion commercial paper program. Acquisitions are subject to uncertainties and there can be no assurance that these planned property acquisitions will be completed at the prices or on the timetable or other terms currently contemplated, or at all, or that the company will enter into binding agreements to acquire properties as to which the company has entered into letters of intent.

A preliminary prospectus supplement and accompanying prospectus related to the public offering of these securities have been or will be filed with the Securities and Exchange Commission. Copies of the preliminary prospectus supplement and the accompanying prospectus, when available, may be obtained from BofA Securities, Attn: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001 or email: dg.prospectus_requests@bofa.com; or Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or Wells Fargo Securities, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, New York, 10001, at (800) 326-5897 or email: cmclientsupport@wellsfargo.com; or Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, at (800) 831-9146 or email: prospectus@citi.com.

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act. These securities are only offered by means of the preliminary prospectus supplement related to the offering and the related prospectus. 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.

Forward-Looking Statements

Statements in this press release that are not strictly historical, including statements regarding planned acquisitions, are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, domestic and foreign real estate conditions, tenant financial health, the availability of capital to finance planned growth, volatility and uncertainty in the credit markets and broader financial markets, changes in foreign currency exchange rates, property acquisitions and the timing of these acquisitions, charges for property impairments, the effects of the COVID-19 pandemic and the measures taken to limit its impact, the effects of pandemics or global outbreaks of contagious diseases or fear of such outbreaks, the company's tenants' ability to adequately manage its properties and fulfill their respective lease obligations to the company, and the outcome of any legal proceedings to which the company is a party, as described in the company's filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results and property acquisitions may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these 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

What is the size of Realty Income's public offering on January 11, 2021?

Realty Income announced a public offering of 10,500,000 shares of common stock.

What are the intended uses of funds from the stock offering by Realty Income?

Funds will be used to support property acquisitions, general corporate purposes, and repayment of debts.

What is the estimated value of property acquisitions associated with Realty Income's offering?

As of January 8, 2021, the estimated value of property acquisitions is approximately $676.8 million.

How many shares can underwriters purchase in addition to Realty Income's public offering?

Underwriters have a 30-day option to purchase up to 1,575,000 additional shares.

What risks does Realty Income mention regarding the public offering?

Risks include uncertainties in property acquisitions and potential impacts on financial conditions.