Realty Income offers a 5.6% yield supported by 112 consecutive quarterly dividend increases and 30 years of annual growth. The REIT’s adjusted funds from operations (AFFO) payout ratio stands at a conservative 75%, reflecting strong coverage given that tenants bear most property-level operating expenses. Investors benefit from a diversified portfolio of over 15,500 net-lease properties—approximately 80% retail, 15% industrial and 5% specialty assets such as casinos and data centers. Geographically, 82% of rent rolls stem from the U.S. market, with the remainder generated in seven European countries where the single-tenant net-lease model remains underpenetrated. An investment-grade balance sheet underpins the dividend’s sustainability and provides flexibility for growth initiatives.

On January 6, 2026, Realty Income priced $750 million of 3.50% convertible senior notes due 2029 in a private placement to qualified institutional buyers, with an option for an additional $112.5 million. Settlement is scheduled for January 8, subject to customary closing conditions. The notes accrue semi-annual interest and will mature on January 15, 2029, with conversion rights exercisable beginning October 15, 2028. Initial conversion terms allow holders to receive 14.4051 shares per $1,000 principal, representing a 20% premium to the stock’s recent trading level. Proceeds—estimated at $735 million net of fees—are earmarked for general corporate purposes, including repayment of $500 million of senior notes maturing January 2026, potential acquisitions, property development and a $102.1 million share repurchase to acquire 1.8 million common shares concurrently with the offering.

Realty Income intends to deploy net proceeds to optimize its capital structure and accelerate portfolio expansion. Planned debt retirements and share repurchases aim to lower interest expense and enhance per-share metrics, while continued investments in property acquisitions, redevelopment projects and its emerging asset-management platform target long-term AFFO growth. The company’s investment-grade rating and strong liquidity positions it to pursue accretive transactions across its core U.S. and European markets, reinforcing its status as a leading net-lease landlord and The Monthly Dividend Company®.