Realty Income focuses on acquiring freestanding, single-tenant properties under long-term, net lease agreements. For retail properties, we target tenants with a service, non-discretionary, and/or low price point component to their business. For non-retail properties, we target primarily industrial and distribution properties leased to Fortune 1000, investment-grade-rated companies.
Our acquisition strategy is to act as a source of capital to regional and national commercial tenants by acquiring and leasing back their real estate locations. In addition, we frequently acquire large portfolios of properties net leased to multiple tenants in a variety of industries. We have an internal team dedicated to sourcing such opportunities, often using our relationships with various tenants, owners/developers, and advisors to uncover and secure transactions. We also undertake thorough research and analysis to identify what we consider to be appropriate industries, tenants, and property locations for investment. This research expertise is instrumental to uncovering net lease opportunities in markets where our investment adds value.
Key advantages we offer include the following:
- Experience and track record (48-year operating history and 22-year history as a publicly traded company on the New York Stock Exchange)
- Ability to fund through cash on hand or $2 billion acquisition credit facility, which also has a $1 billion accordion expansion feature
- No financing contingencies or financial covenants
- Ability to offer tax-deferred solutions through issuance of OP units
- Capacity to provide financing for build-to-suit development deals with identified tenant
- Willingness to engage in acquisitions of all sizes
- Investment-grade balance sheet rated BBB+ equivalent by all three rating agencies
- Access to public debt and equity capital markets
Click below for background on our existing portfolio (as of 12/31/2016):