Realty Income to Acquire $1.3B Portfolio from CIM
The investor has announced plans to acquire 454 single-tenant retail properties from CIM Real Estate Finance Trust.
Realty Income has announced plans to acquire 454 single-tenant retail properties from CIM Real Estate Finance Trust. The deal is valued at $1.25 billion and is an all-cash transaction.
The sales price equates to a 7% cap rate and produces an investment spread relative to Realty Income’s first-year weighted average cost of capital well above the company’s historical average. The portfolio has a remaining lease term of 9.7 years and generates 58% of total rental revenue from investment-grade rated companies or their subsidiaries.
Upon completion of the transaction, Realty Income will 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 5.3 years.