The sale-leaseback transaction with Sainsbury’s is executed at a 5.31% GBP initial cap rate, includes annual rent increases over the duration of the lease term, and carries a weighted average lease term of approximately 15 years.
"We believe that the size of the European net lease market and a need for a large-scale, well-capitalized institutional real estate partner creates a very propitious environment for us to increase our addressable market. Realty Income Corporation's "short interest ratio" (SIR) is the quantity of Realty Income Corporation shares currently shorted divided by the average quantity of Realty Income Corporation shares traded daily (recently around 1.9 million). Conference Call Information and Supplemental Materials. Realty Income Corporation, incorporated on March 25, 1997, is a real estate investment trust (REIT).
The Company is engaged in in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology and …
The sale-leaseback transaction with Sainsbury's is executed at a 5.31% GBP initial cap rate, includes annual rent increases over the duration of the lease term, and carries a weighted average lease term of approximately 15 years. Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing shareholders with dependable monthly income. To date, the company has declared 586 consecutive common stock monthly dividends throughout its 50-year operating history and increased the dividend 101 times since Realty Income's public listing in 1994 (NYSE: O). Sainsbury’s is a natural fit to our existing high-quality real estate portfolio, as the company is one of the top operators in the grocery industry with a consistent track record and respected management team.
Our company is ideally positioned to pursue these additional growth avenues in Europe given our position as the leader in the net lease industry, sector-leading cost of capital, and ability to complete large-scale sale-leaseback transactions without creating tenant or industry concentration issues. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. As a result, we are increasing our 2019 AFFO per share guidance to $3.28 - $3.33 from $3.25 - $3.31.".
We are using cookies to give you the best experience on our website. We believe there is significant demand from high-quality tenants in Europe for sale-leaseback capital on reasonable terms and believe Realty Income is uniquely positioned to capitalize on this opportunity utilizing its industry-leading scale and cost of capital.
We are pleased to execute this sale-leaseback transaction at investment spreads relative to our first-year weighted average cost of capital that exceed our historical average. Realty Income is a net lease REIT, which means it owns properties but its tenants are responsible for most of the operating expenses of the assets they occupy. “We believe that the size of the European net lease market and a need for a large-scale, well-capitalized institutional real estate partner creates a very propitious environment for us to increase our addressable market. "We are excited to announce this strategic transaction, which supplements our robust domestic investment pipeline and represents a natural evolution of the company's strategy," said Sumit Roy, President and Chief Executive Officer. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. You can find out more about which cookies we are using or switch them off in settings. The transaction is expected to close on or around May 22, 2019, subject to customary closing conditions.
The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,700 real estate properties owned under long-term lease agreements with regional and national commercial tenants.
San Diego-based Realty Income was founded in 1969 and went public in 1994. Find out more about how we use your information in our Privacy Policy and Cookie Policy. Realty Income, The Monthly Dividend Company ®, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. Member: S&P 500 | S&P 500 Dividend Aristocrats® Index, Compound Average Annual Total Return Since 1994 NYSE Listing, Compound Annualized Dividend Growth Since 1994 NYSE Listing, Properties Under Long-termNet Lease Agreements, States, Puerto Ricoand the United Kingdom, Compound average annual total return presented as of 6/30/20.
Sainsbury's has demonstrated resiliency through multiple economic cycles, most recently during the Great Recession, as Sainsbury's maintained healthy same store sales growth, improved EBITDA margins, and reduced leverage.