O · Earnings call · 2026Q2T · Full report
Liquidity and Debt Position
REALTY INCOME CORP · 2026-08-05 · Importance 46 · Surprise 42 · In source text
Realty Income ended the second quarter with approximately $3.5 billion of available pro rata liquidity and net debt to annualized pro forma adjusted EBITDA of 5.4x, or 5.2x including unsettled ATM forwards. The expanded global revolving credit facility now permits up to $5.5 billion of borrowings, while the commercial paper program increased to $5.5 billion. The company completed a €600 million bond offering at a 3.7% yield and raised $90 million of additional forward equity, increasing pro forma available liquidity to more than $5.7 billion. Year to date, Realty Income issued $3 billion of debt at a 3.9% blended effective coupon versus $1.4 billion of maturities at a 4% blended coupon, and it intends to keep variable-rate debt at 10% or less of total debt.
Key facts
- Updated credit facility now provides for borrowings of up to $5.5 billion, an increase of $1.5 billion from the prior facility with a 5 basis point reduction to the borrowing rate
- Global commercial paper program expanded to $5.5 billion, an increase of $2.5 billion
- Settled $825 million of forward equity year to date to close on $4.7 billion of pro rata investment activity while maintaining leverage within 5.5x target level
- Pro forma for the recent transactions, available liquidity increased to more than $5.7 billion
- Year-to-date issued $3 billion of new debt at a blended effective coupon of 3.9% compared to $1.4 billion of debt that has matured year-to-date at a blended coupon of 4%
- Enterprise value is approaching $90 billion
- Fitch initiated coverage with a solid A long-term issuer default rating for Realty Income
- Realty Income ended Q2 2026 with approximately $3.5 billion of available liquidity on a pro rata basis
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | — | Settled $825 million of forward equity year to date to close on $4.7 billion of pro rata investment activity while maintaining leverage… |
| cash | negative | realized | — | Settled $825 million of forward equity year to date to close on $4.7 billion of pro rata investment activity while maintaining leverage… |
| cash | positive | realized | — | Settled $825 million of forward equity year to date to close on $4.7 billion of pro rata investment activity while maintaining leverage… |
| liability | negative | realized | — | Year-to-date issued $3 billion of new debt at a blended effective coupon of 3.9% compared to $1.4 billion of debt that has matured… |
| cash | positive | realized | — | Year-to-date issued $3 billion of new debt at a blended effective coupon of 3.9% compared to $1.4 billion of debt that has matured… |
| liability | positive | realized | — | Year-to-date issued $3 billion of new debt at a blended effective coupon of 3.9% compared to $1.4 billion of debt that has matured… |
| cash | negative | realized | — | Year-to-date issued $3 billion of new debt at a blended effective coupon of 3.9% compared to $1.4 billion of debt that has matured… |
| net_income | positive | realized | — | Fitch initiated coverage with a solid A long-term issuer default rating for Realty Income |
| cash | positive | realized | — | Realty Income ended Q2 2026 with approximately $3.5 billion of available liquidity on a pro rata basis |
| liability | negative | realized | — | Completed a €600 million-denominated bond offering at a yield of 3.7% |
| liability | negative | realized | — | Year-to-date issued four discrete debt instruments including a convertible bond, a U.S. dollar unsecured bond swapped to euros, a… |