Superior Stability and Dividend Growth
Credit Valuation Arbitrage:
Acquiring Cash Flow from Blue-Chip Operators
at Attractive Real Estate Spreads
NET LEASE ACQUISITIONS GENERATE PREMIUM
INCOME STREAM RELATIVE TO BONDS
Top 50 Clients Represent(2)
~60%
of total annual
rent
~40%
of total annual rent from
clients with public ~10-yr
notes outstanding
~60%
of Top 50 clients
have an investment
grade credit rating(3)
BBB-/Baa3
weighted average
credit rating
~90%
of total rent from
publicly traded
companies
~70%
of total rent from
members of S&P 500
or equivalent index
Realty Income's
acquisitions generate
~180 bps spread over
comparable bond yields
Walgreens 7-ELEVEN. CIRCLE K
❤CVS pharmacy LOWE'S
THE
HOME
DEPOT
FedEx. DOLLAR GENERAL
amazon TESCO
TSC
TRACTOR
SUPPLY CO
Kroger
DOLLAR TREE
O'Reilly Walmart
BEST
BUY
Advance
Auto Parts
AUTO PARTS
Source: Bloomberg
(1) Weighted average (by rent) ~10-year bond yields as of 3/31/2022.
(2) As of 3/31/2022.
(3) As measured by rent. -12% of clients (by rent) are not rated. Investment grade clients are clients with a credit rating of
Baa3/BBB- or higher from one of the three major rating agencies (Moody's/S&P/Fitch).
382 bps
562 bps
(1)
Top 50 Client 10-Year Bond Yields
1Q22 Acquisition Cap Rate
REALTY
INCOME
42
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