Realty Income Corporation closed a £900 million sterling‑denominated unsecured term loan on November 18 2025. The loan matures in January 2028 and includes a one‑year extension option. After executing two‑year variable‑to‑fixed interest‑rate swaps, the all‑in fixed rate is 4.3%, 80 basis points above the Sterling Overnight Index Average (SONIA). The proceeds will be used to repay existing sterling‑denominated borrowings on the company’s $4.0 billion multicurrency revolving credit facility and to pre‑fund a £705 million tranche of a January 2026 multi‑currency term loan, thereby tightening the company’s debt profile ahead of upcoming maturities.
The refinancing is a proactive step to lock in a lower fixed rate and extend the maturity of sterling‑denominated debt. By replacing higher‑cost short‑term borrowings with a longer‑term, fixed‑rate facility, Realty Income reduces refinancing risk and secures a more predictable interest expense. The 4.3% rate is competitive for a company with an A3/A‑ credit rating, reflecting the firm’s strong credit standing and the market’s confidence in its diversified portfolio of over 15,500 properties across the U.S., U.K., and Europe.
As of the third quarter of 2025, Realty Income’s total debt stood at $29.04 billion. The new loan adds a structured source of liquidity that can be drawn on to support growth initiatives or to refinance other obligations. The company’s credit rating, maintained at A3 by Moody’s and A‑ by S&P, underpins its ability to secure favorable terms and demonstrates the market’s view of its solid balance sheet and steady cash‑flow generation from long‑term leases.
Jonathan Pong, Executive Vice President, Chief Financial Officer and Treasurer, said the transaction “strengthens our financial flexibility abroad and provides a lower all‑in fixed rate for upcoming sterling‑denominated maturities.” He added that the loan “supports our global platform and reinforces the confidence of our lenders in our long‑term strategy.” The comment underscores the company’s focus on maintaining a robust, low‑cost capital structure to fund its international expansion and portfolio diversification.
The loan fits into Realty Income’s broader strategy of balancing a high‑dividend REIT model with disciplined capital allocation. The firm has been expanding beyond traditional retail into industrial, gaming, office, and distribution assets, which now account for roughly 20 % of revenue. A stable, low‑cost sterling facility helps mitigate currency exposure and provides a buffer against potential European regulatory or economic headwinds, while also supporting the company’s ability to pursue opportunistic acquisitions in the U.S. and abroad.
No market reaction data were available at the time of the announcement, and no analyst commentary on the transaction was reported. The focus remains on the company’s strengthened debt profile and the strategic benefits of the new financing.
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