$SRC
$O (-3.73%) Acquisition
Realty Income acquires Spirit Realty Capital in $9.3 billion transaction
More than 2.5% increase in annualized AFFO per share across all neutral leveraged equity transactions
- Complementary real estate portfolio improves size, scale and diversification to expand runway for future growth
- No reliance on capital markets to complete transaction; real estate income to assume existing debt with low interest rates
SAN DIEGOUndDALLAS, Oct. 30, 2023 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company® and Spirit Realty Capital, Inc. (Spirit, NYSE: SRC) today announced that the two companies have entered into a definitive merger agreement under which Realty Income will acquire Spirit in an all-stock transaction with an enterprise value of approximately $9.3 billion. The leverage-neutral transaction is expected to increase Realty Income's annualized adjusted funds from operations (AFFO) per share by more than 2.5%. In addition, no new debt is expected to be required to finance the transaction. Upon completion of the merger, there will be an enterprise value of approximately $63 billion for the combined company, enhancing Realty Income's size, scale and diversification to expand opportunities for future growth.
