On Apr 10, 2015, Realty Income Corporation O, the San Diego, CA-based retail real estate investment trust (“REIT”), closed a public offering comprising 5.5 million in common shares at a price of $50.51 per share. The offering will enhance financial flexibility of the company, which already has a strong balance sheet. Notably, the offering was priced on Apr 5.
Realty Income, boasting a robust capital position, is committed to rewarding its shareholders. Since its listing in 1994, the company has paid over $3.3 billion in monthly dividends. Last January, the REIT announced a hike of 3% in its monthly dividend rate to 18.9 cents from 18.34167 cents paid earlier, marking its 79th common stock dividend raise since 1994.
Through the latest offering, Realty Income expects to generate net proceeds, after underwriting discounts, of around $276.7 million. The company intends to use the proceeds for repayment of borrowings under its $1.5 billion acquisition credit facility. Notably, the company uses this facility for funding real estate acquisitions.
Realty Income is engaged in acquisition, leasing, underwriting, portfolio management and capital markets activities. Besides adding to its financial strength, the offering will help the company conduct its strategic objectives in a better way.
Currently, Realty Income carries a Zacks Rank #3 (Hold).
Investors interested in the retail REIT industry may consider stocks like Acadia Realty Trust AKR, American Realty Capital Properties, Inc. ARCP and STORE Capital Corp. STOR. All these stocks hold a Zacks Rank #2 (Buy).
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