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Realty Income Closes First Tranche Transaction With CIM Real Estate Finance Trust


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San Diego-based Realty Income Corp. has closed on the acquisition of 411 properties for approximately $1.035 billion. According to a prepared release, this represents the first tranche of the previously revealed transaction with CIM Real Estate Finance Trust Inc.

The acquisition of the remaining properties in the CMFT portfolio are expected to close in late 2019 and/or early 2020 for approximately $207 million, subject to customary closing conditions. Upon closing of the acquisition of the remaining properties, Realty Income expects to assume existing mortgage debt totaling approximately $131 million at a weighted average interest rate of 4.5% and a weighted average remaining term to maturity of approximately five years.

The total portfolio transaction with CMFT, which was previously announced in September 2019, is valued at approximately $1.25 billion and is expected to be executed at an approximate 7% cash cap rate.

Realty Income is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,900 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 593 consecutive common stock monthly dividends throughout its 50-year operating history and increased the dividend 103 times since Realty Income’s public listing in 1994.