Commercial property investment firm Realty Income Corp. has entered into a new $1 billion unsecured acquisition credit facility, replacing an existing $425 million package, as it looks to expand its portfolio.
The Escondido-based company announced May 10 that the new package runs for four years, with a one-year extension option. There is also an “accordion” feature that would increase the new credit facility by $500 million under certain conditions, according to a company statement.
Chief Financial Officer Paul M. Meurer said the expanded credit facility will enhance the company’s liquidity and financial flexibility, providing ready access to needed capital.
“This facility will provide us with the funds to continue to increase the size of our real estate portfolio, which is fundamental to our goal of regularly increasing the amount of the monthly dividend we pay to our shareholders,” Meurer said.
The lead arranger for the new credit facility was Wells Fargo Securities LLC, with several other financial services firms participating, the statement said.
The real estate investment trust, which acquires retail and related commercial properties, has declared 503 consecutive monthly dividend payments throughout its 43-year operating history. The company trades under the symbol O on the New York Stock Exchange.