Realty Income ticks higher after upsized $875 mln convertible bond sale

Realty Income

12/08/2026 11:52

** Realty Income's O.N shares up 0.1% to $61.94 before the bell on Weds after co raises more capital than planned
** Commercial REIT announced pricing private offering of $875 mln 3.75% convertible bonds (CBs) due Aug 15, 2031
** Offering size increased from $750 mln; conversion price of $72.72 represents 17.5% premium to stock's last close of $61.89
** Co intends to use net proceeds for general purposes, including repayment or repurchasing debt, foreign currency swaps or other hedging instruments, development, redevelopment and acquisition of additional properties, among other uses
** It also intends to use approx $29 mln to pay cost of capped call transactions and about $188.7 mln to repurchase shares from initial purchasers of the CBs to facilitate hedging
** San Diego, California-based firm has nearly $59 bln market cap
** Through Tues, O shares up 9.8% YTD, in line with ~10% advance in S&P 500 Real Estate sector .SPLRCR
** Avg rating of 25 analysts is "hold"; median PT $68, per latest LSEG data

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