Realty Income Corporation (O Quick QuoteO - Free Report) has closed the offering of 6.5 million common shares which is likely to add flexibility to the San Diego, CA-based retail real estate investment trust’s (“REIT”) balance sheet.

Before subtracting the expenses related to the offering, the company is expected to generate net proceeds of around $383.8 million. Realty Income intends to utilize the net proceeds for the repayment of borrowing under its $2 billion unsecured revolving credit facility. Also, the company plans to use the proceeds for financing potential investment opportunities and for general corporate purposes.

Notably, Realty Income is focused on providing dependable monthly income to the shareholders, which is supported by the cash flow generated from the property portfolio. Since 1969, the company has been engaged in acquisition and management of commercial properties that accrue rental revenue under long-term, net lease agreements.

Last month, Realty Income reported first-quarter 2016 adjusted funds from operations (“FFO”) of 70 cents per share, missing the Zacks Consensus Estimate by a penny. However, it came in higher than the prior-year tally of 67 cents.

The stock presently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the retail REIT space include Pennsylvania Real Estate Investment Trust , Retail Opportunity Investments Corp. (ROIC Quick QuoteROIC - Free Report) and Saul Centers Inc. (BFS Quick QuoteBFS - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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