Shares of Realty Income Corporation (O) traded lower on Tuesday following the company’s announcement of a $500 million debt offering. The offering, consisting of 5.375% senior unsecured notes due in 2054, was priced at 98.374% of the principal amount, yielding an effective semi-annual return of 5.486%.
Realty Income plans to utilize the net proceeds from the offering for general corporate purposes, including the repayment of existing debt and the management of foreign currency swaps or other hedging instruments. The offering is expected to be finalized on August 26th, pending the fulfillment of customary closing conditions.
Despite the news of the debt offering, Realty Income delivered strong second-quarter results. The real estate investment trust (REIT) reported adjusted funds from operations (FFO) of $1.06 per share, surpassing the analyst consensus of $1.05. The company’s revenue also came in above expectations, reaching $1.34 billion compared to the projected $1.25 billion. As of June 30th, Realty Income’s net debt stood at $25.9 billion.
Investors interested in gaining exposure to Realty Income can utilize exchange-traded funds (ETFs) like the Janus Henderson U.S. Real Estate ETF (JRE) and the NETLease Corporate Real Estate ETF (NETL).
At the time of writing, O shares were down 0.53% at $60.54.
