Realty Income slips after announcing $750 mln convertible offering

Realty Income

11/08/2026 21:45

** Realty Income's O.N shares down 0.2% at $61.75 post-market after planned capital raise news
** Commercial REIT announces private offering of $750 mln convertible bonds (CBs) due 2031
** Co intends to use net proceeds for general corporate purposes, including repayment or repurchasing debt, foreign currency swaps or other hedging instruments, development, redevelopment and acquisition of additional properties, among other uses
** Also plans to use some proceeds to pay cost of capped call transactions and repurchase its shares from initial purchasers of the CBs to facilitate hedging
** San Diego, California-based firm has about $58 bln market cap
** O shares closed flat at $61.89 on Tues. YTD, stock up 9.8%, in line with ~10% advance in S&P 500 Real Estate sector .SPLRCR
** Avg rating of 26 analysts is "hold"; median PT $68, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))