Realty Income Corporation (O - Free Report) has announced the pricing of an upsized underwritten public offering of 8 million shares of common stock. The company had previously planned for offering of 7.25 million shares. Moreover, underwriters have been granted a 30-day option to buy up to 1.2 million additional shares. The move is aimed to improve its balance-sheet strength and enhance liquidity by tapping the equity markets.
The offering expected to close on Jul 6 will yield gross proceeds of roughly $519 million.
The company intends to utilize the net proceeds to repay borrowings under its $3-billion revolving credit facility and $1-billion commercial paper program. The residual proceeds will be used to fund potential investment opportunities and made available for other general corporate needs.
During first-quarter 2021, Realty Income invested $1.03 billion in 110 properties and properties under development or expansion. Moreover, in April 2021, Realty Income announced entering into a definitive merger agreement with VEREIT, Inc. for the acquisition of the latter in an all-stock transaction. Decent investments for the acquisitions of well-located commercial properties add to the company’s scale, offering a competitive edge to its net lease industry.
Markedly, retail REITs, which had already been battling store closures and bankruptcy issues, suffered the brunt of the pandemic with e-commerce adoption increasing by manifolds, and social-distancing requirements affecting customer traffic and rental collections from tenants. In fact, apart from Realty Income, this turbulence has affected other retail REITs, including Macerich, Simon Property (SPG - Free Report) and Kimco (KIM - Free Report) among others.
Particularly, Realty Income’s tenants from theatre as well as health and fitness industries were severely impacted by the pandemic and the consequent social-distancing norms.
However, amid this disruption of cash flows of landlords, Realty Income remains committed to improve its balance-sheet strength and boost its liquidity, and the latest capital raise is also in line with these efforts. Moreover, manageable near-term maturities, modest leverage and strong coverage metrics as well as ample liquidity provide the company with financial flexibility to tide over any mayhem.
Shares of this Zacks Rank #3 (Hold) company have gained 11.5% over the past six months, underperforming the industry’s rally of 28.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Realty Income Corporation (O - Free Report) has announced the pricing of an upsized underwritten public offering of 8 million shares of common stock. The company had previously planned for offering of 7.25 million shares. Moreover, underwriters have been granted a 30-day option to buy up to 1.2 million additional shares. The move is aimed to improve its balance-sheet strength and enhance liquidity by tapping the equity markets.
The offering expected to close on Jul 6 will yield gross proceeds of roughly $519 million.
The company intends to utilize the net proceeds to repay borrowings under its $3-billion revolving credit facility and $1-billion commercial paper program. The residual proceeds will be used to fund potential investment opportunities and made available for other general corporate needs.
During first-quarter 2021, Realty Income invested $1.03 billion in 110 properties and properties under development or expansion. Moreover, in April 2021, Realty Income announced entering into a definitive merger agreement with VEREIT, Inc. for the acquisition of the latter in an all-stock transaction. Decent investments for the acquisitions of well-located commercial properties add to the company’s scale, offering a competitive edge to its net lease industry.
Markedly, retail REITs, which had already been battling store closures and bankruptcy issues, suffered the brunt of the pandemic with e-commerce adoption increasing by manifolds, and social-distancing requirements affecting customer traffic and rental collections from tenants. In fact, apart from Realty Income, this turbulence has affected other retail REITs, including Macerich, Simon Property (SPG - Free Report) and Kimco (KIM - Free Report) among others.
Particularly, Realty Income’s tenants from theatre as well as health and fitness industries were severely impacted by the pandemic and the consequent social-distancing norms.
However, amid this disruption of cash flows of landlords, Realty Income remains committed to improve its balance-sheet strength and boost its liquidity, and the latest capital raise is also in line with these efforts. Moreover, manageable near-term maturities, modest leverage and strong coverage metrics as well as ample liquidity provide the company with financial flexibility to tide over any mayhem.
Shares of this Zacks Rank #3 (Hold) company have gained 11.5% over the past six months, underperforming the industry’s rally of 28.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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