OUR ASSETS IN ACTION

In 2022, Realty Income purchased the Wynn Encore Boston Harbor Resort and Casino for $1.7 billion at a 5.9% cash cap rate.

• Realty Income’s entry into gaming demonstrates that its growth opportunities are unconstrained by industry or property type.
• This 30-year, triple net lease includes favorable annual rent escalators linked to CPI and was purchased at a discount to replacement cost.
• The state-of-the-art asset, which is LEED Platinum certified, was built in 2019 and includes 3.1 million square feet, more than 670 luxury resort accommodations, approximately 10,000 square feet of retail space and more than 2,700 slot machines.
• In 2022, Massachusetts legalized sports betting. On January 31, 2023, Encore Boston Harbor launched in-person sports betting at the resort's WynnBET Sportsbook. 
• The property is uniquely positioned as the only integrated resort and casino located in the Boston metropolitan area. Additionally, Encore holds one of only three Class I gaming licenses that have been granted in Massachusetts.
• As the only casino located in the Boston metro area, the Wynn Encore Boston Harbor is within five miles of Harvard University, Fenway Park, Boston Logan International Airport and other destinations.

In 2019, Realty Income acquired 12 hypermarket assets across the UK through a £429 million sale-leaseback with Sainsbury’s, a blue-chip grocery operator with proven resiliency through multiple economic cycles.

• All properties fall under triple net leases with a 15-year weighted-average lease term and attractive annual rent increases.
• Since 2019, we have strengthened our partnership with Sainsbury’s through several additional attractive sale-leaseback transactions.
• This transaction established our international growth platform in the UK, which offers sizable opportunity for strategic growth and provided the foundation for our expansion into Continental Europe in 2021.
• This opportunity was sourced through a relationship and completed as an off-market sale-leaseback transaction.
• Sainsbury’s is a leading operator in the Grocery Industry, which fits our key investment criteria as a defensive, non-discretionary business.

• An online leading retailer has been leasing this e-commerce fulfillment center since 2014.
• This asset totals more than one million square feet and includes more than 2,500 parking spaces for the large workforce that operates this space.
• We acquired this asset as part of a transaction totaling more than three million square feet.
• With favorable proximity to major cities including Atlanta, Nashville, Charlotte, Charleston and Memphis, this property benefits from a large employment audience and key southeast location.
• An international airport is located in close proximity to this property which facilitates commercial shipping.
• Based on the credit quality of the client, a long remaining lease term, recent construction and the strategic location, Realty Income acquired this asset to add to our mission-critical industrial property portfolio.

Throughout 2016, Realty Income partnered with 7-Eleven, an investment grade (A/Baa2) leader in the convenience store industry, to complete sale-leaseback transactions which in total included over 100 convenience stores under a long-term triple net leases.

• The majority of the convenience stores acquired were located in densely populated areas with high median household incomes and strong cash flow coverage ratios.
• These transactions built the foundation for our relationship with 7-Eleven, which included meeting with leadership to understand their long-term strategic plans, current operating performance, and their view of the future of convenience stores. Since 2016, we have strengthened our partnership with 7-Eleven through several additional transactions.
• Leveraging our size and scale, we provided 7-Eleven with a comprehensive solution to monetize their real estate, supplying our clients with growth capital while expanding our business in the convenience store industry.

Three years prior to a property’s expected lease expiration date, Realty Income negotiated a 10-year renewal agreement with the client that included a 1.07 acre outparcel development in exchange for certain improvements to the parking lot.

• Completed in 2021, we developed a 2,350 square foot building leased to Chipotle Mexican Grill, which includes a drive thru expected to help generate traffic to the center to benefit the surrounding retailers.
• This redevelopment has maximized rental income on previously underutilized land.
• This transaction strengthened our relationship with Chipotle Mexican Grill as well as the client with whom we negotiated.
• Through parking lot improvements, increased traffic and a new centrally located restaurant location, this redevelopment benefits a number of stakeholders.