SAN DIEGO, May 23, 2019
/PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O),
The Monthly Dividend Company®, today announced it has
closed on the previously announced acquisition of 12 properties
located in the United Kingdom for
£429 million under long-term net lease agreements with Sainsbury's.
The transaction is Realty Income's first international real estate
acquisition.
The sale-leaseback transaction with Sainsbury's is executed at a
5.31% GBP initial cap rate, includes annual rent increases over the
duration of the lease term, and carries a weighted average lease
term of approximately 15 years. The transaction is partially funded
with proceeds from the private placement of £315 million senior
unsecured notes due 2034 with a fixed interest rate of 2.73%. The
balance of the purchase price, as well as the majority of net cash
flow generated from the transaction, is hedged through a 15-year
cross currency swap, which minimizes the company's exposure to
foreign exchange rate fluctuations.
Forward-Looking Statements
Statements in this press release that are not strictly
historical 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, local and foreign real estate conditions, tenant
financial health, the availability of capital to finance planned
growth, continued volatility and uncertainty in the credit markets
and broader financial markets, property acquisitions and the timing
of these acquisitions, charges for property impairments, 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 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