| Maryland (State or other jurisdiction of incorporation or organization) | | | 6798 (Primary Standard Industrial Classification Code Number) | | | 33-0580106 (I.R.S. Employer Identification No.) | |
| Large accelerated filer ☒ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☐ | | | Smaller reporting company ☐ | |
| | | | Emerging growth company ☐ | |
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Title of Each Class of Securities To Be Registered | | | | Amount To be Registered(1) | | | | Proposed Maximum Offering Price Per Unit | | | | Proposed Maximum Aggregate Offering Price | | | | Amount Of Registration Fee(2) | |
4.600% Notes due February 6, 2024 | | | | $500,000,000 | | | | 100% | | | | $500,000,000 | | | | $46,350 | |
4.625% Notes due November 1, 2025 | | | | $550,000,000 | | | | 100% | | | | $550,000,000 | | | | $50,985 | |
4.875% Notes due June 1, 2026 | | | | $600,000,000 | | | | 100% | | | | $600,000,000 | | | | $55,620 | |
3.950% Notes due August 15, 2027 | | | | $600,000,000 | | | | 100% | | | | $600,000,000 | | | | $55,620 | |
3.400% Notes due January 15, 2028 | | | | $600,000,000 | | | | 100% | | | | $600,000,000 | | | | $55,620 | |
2.200% Notes due June 15, 2028 | | | | $500,000,000 | | | | 100% | | | | $500,000,000 | | | | $46,350 | |
3.100% Notes due December 15, 2029 | | | | $600,000,000 | | | | 100% | | | | $600,000,000 | | | | $55,620 | |
2.850% Notes due December 15, 2032 | | | | $700,000,000 | | | | 100% | | | | $700,000,000 | | | | $64,890 | |
Total | | | | | | | | | | | | $4,650,000,000 | | | | $431,055 | |
Aggregate Principal Amount ($mm) | | | Series of Notes Issued by VEREIT to be Exchanged (Collectively, the “VEREIT Notes”) | | | CUSIP No. | | | Series of Notes to be Issued by Us (Collectively, the “Realty Notes”) | | | Exchange Consideration(1)(2) | | | Early Participation Premium(1)(2) | | | Total Consideration(1)(2)(3) | | |||||||||||||||||||||
| | | | | | | | | | | | Realty Notes (principal amount) | | | Cash | | | Realty Notes (principal amount) | | | Realty Notes (principal amount) | | | Cash | | |||||||||||||||
$500 | | | 4.600% Notes due 2024 (the “2024 Notes”) | | | 03879QAF1 | | | 4.600% Notes due 2024 (the “New 2024 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$550 | | | 4.625% Notes due 2025 (the “2025 Notes”) | | | 92340LAD1 | | | 4.625% Notes due 2025 (the “New 2025 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$600 | | | 4.875% Notes due 2026 (the “2026 Notes”) | | | 92340LAA7 | | | 4.875% Notes due 2026 (the “New 2026 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$600 | | | 3.950% Notes due 2027 (the “2027 Notes”) | | | 92340LAC3 | | | 3.950% Notes due 2027 (the “New 2027 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$600 | | | 3.400% Notes due January 2028 (the “Jan 2028 Notes”) | | | 92340LAF6 | | | 3.400% Notes due January 2028 (the “New January 2028 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$500 | | | 2.200% Notes due June 2028 (the “June 2028 Notes”) | | | 92340LAH2 | | | 2.200% Notes due June 2028 (the “New June 2028 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$600 | | | 3.100% Notes due 2029 (the “2029 Notes”) | | | 92340LAE9 | | | 3.100% Notes due 2029 (the “New 2029 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$700 | | | 2.850% Notes due 2032 (the “2032 Notes”) | | | 92340LAG4 | | | 2.850% Notes due 2032 (the “New 2032 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
| | | | | | | | | | | | | | | Exchange Consideration(1)(2) | | | Early Participation Premium(1)(2) | | | Total Consideration(1)(2)(3) | | |||||||||||||||||||||
Aggregate Principal Amount ($mm) | | | Series of Notes Issued by Spirit OP to be Exchanged (Collectively, the “Spirit Notes”) | | | CUSIP No. | | | Series of Notes to be Issued by Us (Collectively, the “Realty Notes”) | | | Realty Notes (principal amount) | | | Cash | | | Realty Notes (principal amount) | | | Realty Notes (principal amount) | | | Cash | | ||||||||||||||||||
$300 | | | 4.450% Notes due 2026 (the “2026 Notes”) | | | | | 84861TAC2 | | | | 4.450% Notes due 2026 (the “New 2026 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$300 | | | 3.200% Notes due 2027 (the “2027 Notes”) | | | | | 84861TAE8 | | | | 3.200% Notes due 2027 (the “New 2027 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$450 | | | 2.100% Notes due 2028 (the “2028 Notes”) | | | | | 84861TAH1 | | | | 2.100% Notes due 2028 (the “New 2028 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$400 | | | 4.000% Notes due 2029 (the “2029 Notes”) | | | | | 84861TAD0 | | | | 4.000% Notes due 2029 (the “New 2029 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$500 | | | 3.400% Notes due 2030 (the “2030 Notes”) | | | | | 84861TAF5 | | | | 3.400% Notes due 2030 (the “New 2030 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$450 | | | 3.200% Notes due 2031 (the “2031 Notes”) | | | | | 84861TAG3 | | | | 3.200% Notes due 2031 (the “New 2031 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
$350 | | | 2.700% Notes due 2032 (the “2032 Notes”) | | | | | 84861TAJ7 | | | | 2.700% Notes due 2032 (the “New 2032 Notes”) | | | | $ | 970 | | | | | $ | 1.00 | | | | | $ | 30 | | | | | $ | 1,000 | | | | | $ | 1.00 | | |
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| Series of Notes Issued by (collectively, the | | | Series of Notes to be Issued by Realty (collectively, the “Realty Notes”) | |
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3.200% Notes due 2027 | | | | ||
| 2.100% Notes due 2028 | | | 2.100% Notes due 2028 | |
| 4.000% Notes due 2029 | | | 4.000% Notes due 2029 | |
| 3.400% Notes due | | | 3.400% Notes due | |
3.200% Notes due | | | | ||
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Attention: Liability Management Group Collect: (704) 410-4759 Toll-free: (866) 309-6316 |
48 Wall Street, 22nd Floor New York, New York 10005 Bank and Brokers Call Collect: (212) 269-5550 All Others, Please Call Toll-Free: (866) 796-7184 Email: realtyincome@dfking.com |
D.F. King & Co., Inc. 48 Wall Street, 22nd Floor New York, New York 10005 Bank and Brokers Call Collect: (212) 269-5550 All Others, Please Call Toll-Free: (866) 796-7184 Email: realtyincome@dfking.com |
| Interest Rates and Maturity Dates | | | Semi-Annual Interest Payment Dates | | | Expected First Interest Payment Date | |
4.450% Notes due | ||||||||
| | | | | ||||
3.200% Notes due | | | January 15 and July 15 | | | July 15, 2024 | | |
| 2.100% Notes due March 15, 2028 | | | March 15 and September 15 | | | March 15, 2024 | |
| 4.000% Notes due July 15, 2029 | | | January 15 and July 15 | | | July 15, 2024 | |
| 3.400% Notes due January 15, 2030 | | | January 15 and July 15 | | | July 15, 2024 | |
| 3.200% Notes due February 15, 2031 | | | February 15 and August 15 | | | February 15, | |
2.700% Notes due | ||||||||
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| | | Realty Income Historical | | | Spirit Historical, As Reclassified (Note 3) | | | Pro Forma Transactions Adjustments (Note 4) | | | Item in Note 4 | | | Pro Forma Combined | | |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate held for investment, at cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | | | | $ | 14,408,324 | | | | | $ | 1,808,364 | | | | | $ | 49,088 | | | | | | [1] | | | | | $ | 16,265,776 | | |
Buildings and improvements | | | | | 33,606,951 | | | | | | 7,015,086 | | | | | | (948,871) | | | | | | [1] | | | | | | 39,673,166 | | |
Total real estate held for investment, at cost | | | | | 48,015,275 | | | | | | 8,823,450 | | | | | | (899,783) | | | | | | | | | | | | 55,938,942 | | |
Less accumulated depreciation and amortization | | | | | (5,781,056) | | | | | | (1,354,807) | | | | | | 1,354,807 | | | | | | [2] | | | | | | (5,781,056) | | |
Real estate held for investment, net | | | | | 42,234,219 | | | | | | 7,468,643 | | | | | | 455,024 | | | | | | | | | | | | 50,157,886 | | |
Real estate and lease intangibles held for sale, net | | | | | 19,927 | | | | | | 61,545 | | | | | | 31,255 | | | | | | [3] | | | | | | 112,727 | | |
Cash and cash equivalents | | | | | 344,129 | | | | | | 134,166 | | | | | | (156,656) | | | | | | [4] | | | | | | 321,639 | | |
Accounts receivable, net | | | | | 678,441 | | | | | | 199,826 | | | | | | (185,245) | | | | | | [5] | | | | | | 693,022 | | |
Lease intangible assets, net | | | | | 5,089,293 | | | | | | 389,100 | | | | | | 844,630 | | | | | | [6] | | | | | | 6,323,023 | | |
Goodwill | | | | | 3,731,478 | | | | | | 225,600 | | | | | | 377,467 | | | | | | [7] | | | | | | 4,334,545 | | |
Other assets, net | | | | | 3,239,433 | | | | | | 171,328 | | | | | | (11,785) | | | | | | [8] | | | | | | 3,398,976 | | |
Total assets | | | | $ | 55,336,920 | | | | | $ | 8,650,208 | | | | | $ | 1,354,690 | | | | | | | | | | | $ | 65,341,818 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions payable | | | | $ | 187,288 | | | | | $ | 99,571 | | | | | $ | (99,571) | | | | | | [4] | | | | | $ | 187,288 | | |
Accounts payable and accrued expenses | | | | | 660,366 | | | | | | 69,045 | | | | | | 60,000 | | | | | | [9] | | | | | | 789,411 | | |
Lease intangible liabilities, net | | | | | 1,426,264 | | | | | | 106,814 | | | | | | 284,677 | | | | | | [10] | | | | | | 1,817,755 | | |
Other liabilities | | | | | 786,437 | | | | | | 61,737 | | | | | | — | | | | | | | | | | | | 848,174 | | |
Line of credit payable and commercial paper | | | | | 858,260 | | | | | | — | | | | | | — | | | | | | | | | | | | 858,260 | | |
Term loan, net | | | | | 1,287,995 | | | | | | 1,090,198 | | | | | | 10,507 | | | | | | [11] | | | | | | 2,388,700 | | |
Mortgages payable, net | | | | | 824,240 | | | | | | 4,545 | | | | | | (316) | | | | | | [11] | | | | | | 828,469 | | |
Notes payable, net | | | | | 17,482,652 | | | | | | 2,725,505 | | | | | | (385,651) | | | | | | [11] | | | | | | 19,822,506 | | |
Total liabilities | | | | | 23,513,502 | | | | | | 4,157,415 | | | | | | (130,354) | | | | | | | | | | | | 27,540,563 | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock and paid-in capital | | | | | — | | | | | | 166,177 | | | | | | (1,957) | | | | | | [12] | | | | | | 164,220 | | |
Common stock and paid-in capital | | | | | 38,031,829 | | | | | | 7,307,795 | | | | | | (1,412,109) | | | | | | [12] | | | | | | 43,927,515 | | |
Distributions in excess of net income | | | | | (6,416,534) | | | | | | (3,036,475) | | | | | | 2,954,406 | | | | | | [12] | | | | | | (6,498,603) | | |
Accumulated other comprehensive income | | | | | 41,849 | | | | | | 55,296 | | | | | | (55,296) | | | | | | [12] | | | | | | 41,849 | | |
Total stockholders’ equity | | | | | 31,657,144 | | | | | | 4,492,793 | | | | | | 1,485,044 | | | | | | | | | | | | 37,634,981 | | |
Noncontrolling interests | | | | | 166,274 | | | | | | — | | | | | | — | | | | | | | | | | | | 166,274 | | |
Total equity | | | | | 31,823,418 | | | | | | 4,492,793 | | | | | | 1,485,044 | | | | | | | | | | | | 37,801,255 | | |
Total liabilities and equity | | | | $ | 55,336,920 | | | | | $ | 8,650,208 | | | | | $ | 1,354,690 | | | | | | | | | | | $ | 65,341,818 | | |
| | | Realty Income Historical | | | Spirit Historical, As Reclassified (Note 3) | | | Pro Forma Transactions Adjustments (Note 4) | | | Item in Note 4 | | | Pro Forma Combined | | |||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rental (including reimbursable) | | | | $ | 2,929,440 | | | | | $ | 561,765 | | | | | $ | 24,244 | | | | | | [13] | | | | | $ | 3,515,449 | | |
Other | | | | | 73,268 | | | | | | 9,200 | | | | | | 1,212 | | | | | | [14] | | | | | | 83,680 | | |
Total revenue | | | | | 3,002,708 | | | | | | 570,965 | | | | | | 25,456 | | | | | | | | | | | | 3,599,129 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 1,419,321 | | | | | | 236,527 | | | | | | 15,180 | | | | | | [15] | | | | | | 1,671,028 | | |
Interest | | | | | 522,110 | | | | | | 104,993 | | | | | | 63,066 | | | | | | [16] | | | | | | 690,169 | | |
Property (including reimbursable) | | | | | 235,081 | | | | | | 24,077 | | | | | | 72 | | | | | | [17] | | | | | | 259,230 | | |
General and administrative | | | | | 106,521 | | | | | | 46,190 | | | | | | — | | | | | | | | | | | | 152,711 | | |
Provisions for impairment | | | | | 59,801 | | | | | | 36,052 | | | | | | — | | | | | | | | | | | | 95,853 | | |
Merger and integration-related costs | | | | | 4,532 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,532 | | |
Total expenses | | | | | 2,347,366 | | | | | | 447,839 | | | | | | 78,318 | | | | | | | | | | | | 2,873,523 | | |
Gain on sales of real estate | | | | | 19,675 | | | | | | 66,450 | | | | | | — | | | | | | | | | | | | 86,125 | | |
Foreign currency and derivative gain, net | | | | | 4,957 | | | | | | — | | | | | | — | | | | | | | | | | | | 4,957 | | |
Equity in income and impairment of investment in unconsolidated entities | | | | | 411 | | | | | | — | | | | | | — | | | | | | | | | | | | 411 | | |
Other income, net | | | | | 12,985 | | | | | | — | | | | | | — | | | | | | | | | | | | 12,985 | | |
Income before income taxes | | | | | 693,370 | | | | | | 189,576 | | | | | | (52,862) | | | | | | | | | | | | 830,084 | | |
Income taxes | | | | | (36,218) | | | | | | (754) | | | | | | — | | | | | | | | | | | | (36,972) | | |
Net income | | | | | 657,152 | | | | | | 188,822 | | | | | | (52,862) | | | | | | | | | | | | 793,112 | | |
Net income attributable to noncontrolling interests | | | | | (3,248) | | | | | | — | | | | | | — | | | | | | | | | | | | (3,248) | | |
Dividends paid to preferred stockholders | | | | | — | | | | | | (7,763) | | | | | | — | | | | | | | | | | | | (7,763) | | |
Net income available to common stockholders | | | | $ | 653,904 | | | | | $ | 181,059 | | | | | $ | (52,862) | | | | | | | | | | | $ | 782,101 | | |
Amounts available to common stockholders per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 5) | | |||
Net income, basic and diluted | | | | $ | 0.96 | | | | | $ | 1.28 | | | | | | | | | | | | | | | | | $ | 0.99 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 5) | | |||
Basic | | | | | 681,419 | | | | | | 141,095 | | | | | | | | | | | | | | | | | | 789,815 | | |
Diluted | | | | | 682,129 | | | | | | 141,103 | | | | | | | | | | | | | | | | | | 790,525 | | |
| | | Realty Historical, As Reclassified (Note 3) | | | VEREIT Historical, As Reclassified (Note 3) | | | Mergers Transaction Adjustments (Note 4) | | | Item in Note 4 | | | Orion Divestiture Transaction Adjustments (Note 5) 1 | | | Item in Note 5 | | | Pro Forma Combined | | |||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate held for investment, at cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Land | | | | $ | 6,975,008 | | | | | $ | 2,724,975 | | | | | $ | 648,265 | | | | | | 1 | | | | | $ | (437,481) | | | | | | | | | | | $ | 9,910,767 | | |
Buildings and improvements | | | | | 15,700,846 | | | | | | 9,912,886 | | | | | | 759,505 | | | | | | 1 | | | | | | (1,692,089) | | | | | | | | | | | | 24,681,148 | | |
Total real estate held for investment, at cost | | | | | 22,675,854 | | | | | | 12,637,861 | | | | | | 1,407,770 | | | | | | | | | | | | (2,129,570) | | | | | | | | | | | | 34,591,915 | | |
Less accumulated depreciation and amortization | | | | | (3,775,540) | | | | | | (2,950,819) | | | | | | 2,950,819 | | | | | | 2 | | | | | | 144,865 | | | | | | | | | | | | (3,630,675) | | |
Real estate held for investment, net | | | | | 18,900,314 | | | | | | 9,687,042 | | | | | | 4,358,589 | | | | | | | | | | | | (1,984,705) | | | | | | | | | | | | 30,961,240 | | |
Real estate and lease intangibles held for sale, net | | | | | 39,540 | | | | | | 28,977 | | | | | | 9,897 | | | | | | 3 | | | | | | — | | | | | | | | | | | | 78,414 | | |
Cash and cash equivalents | | | | | 231,164 | | | | | | 275,496 | | | | | | (224,067) | | | | | | 4 | | | | | | 417,476 | | | | | | 2 | | | | | | 700,069 | | |
Accounts receivable, net | | | | | 327,920 | | | | | | 331,232 | | | | | | (284,003) | | | | | | 5 | | | | | | (15,618) | | | | | | | | | | | | 359,531 | | |
Lease intangible assets, net | | | | | 1,969,793 | | | | | | 941,822 | | | | | | 1,878,958 | | | | | | 6 | | | | | | (296,747) | | | | | | | | | | | | 4,493,826 | | |
Goodwill | | | | | 14,017 | | | | | | 1,337,773 | | | | | | (601,437) | | | | | | 7 | | | | | | (116,358) | | | | | | 3 | | | | | | 633,995 | | |
Other assets, net | | | | | 502,193 | | | | | | 312,653 | | | | | | 14,025 | | | | | | 8 | | | | | | (35,021) | | | | | | | | | | | | 793,850 | | |
Total assets | | | | $ | 21,984,941 | | | | | $ | 12,914,995 | | | | | $ | 5,151,962 | | | | | | | | | | | $ | (2,030,973) | | | | | | | | | | | $ | 38,020,925 | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions payable | | | | $ | 90,455 | | | | | $ | 106,999 | | | | | $ | (1,042) | | | | | | 9 | | | | | $ | — | | | | | | | | | | | $ | 196,412 | | |
Accounts payable and accrued expenses | | | | | 259,805 | | | | | | 117,445 | | | | | | 100,664 | | | | | | 10 | | | | | | (9,572) | | | | | | | | | | | | 468,342 | | |
Lease intangible liabilities, net | | | | | 319,495 | | | | | | 115,831 | | | | | | 410,705 | | | | | | 11 | | | | | | (40,356) | | | | | | | | | | | | 805,675 | | |
Other liabilities | | | | | 276,120 | | | | | | 263,932 | | | | | | — | | | | | | | | | | | | (18,707) | | | | | | | | | | | | 521,345 | | |
Line of credit payable and commercial paper | | | | | 1,285,306 | | | | | | — | | | | | | 150,000 | | | | | | 13 | | | | | | — | | | | | | | | | | | | 1,435,306 | | |
Term loan, net | | | | | 249,457 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | 249,457 | | |
Mortgages payable, net | | | | | 300,574 | | | | | | 1,002,496 | | | | | | 45,079 | | | | | | 12 | | | | | | (187,906) | | | | | | 4 | | | | | | 1,160,243 | | |
Notes payable, net | | | | | 7,330,050 | | | | | | 4,588,286 | | | | | | 477,742 | | | | | | 12 | | | | | | — | | | | | | | | | | | | 12,396,078 | | |
Total liabilities | | | | | 10,111,262 | | | | | | 6,194,989 | | | | | | 1,183,148 | | | | | | | | | | | | (256,541) | | | | | | | | | | | | 17,232,858 | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock and paid-in capital | | | | | — | | | | | | 371,781 | | | | | | (371,781) | | | | | | 13 | | | | | | — | | | | | | | | | | | | — | | |
Common stock and paid-in capital | | | | | 15,827,231 | | | | | | 12,985,316 | | | | | | (2,216,650) | | | | | | 13 | | | | | | — | | | | | | | | | | | | 26,595,897 | | |
Distributions in excess of net income | | | | | (3,968,333) | | | | | | (6,644,896) | | | | | | 6,563,907 | | | | | | 13 | | | | | | (1,773,275) | | | | | | 5 | | | | | | (5,822,597) | | |
Accumulated other comprehensive (loss) income | | | | | (19,366) | | | | | | 732 | | | | | | (732) | | | | | | 13 | | | | | | — | | | | | | | | | | | | (19,366) | | |
Total stockholders’ equity | | | | | 11,839,532 | | | | | | 6,712,933 | | | | | | 3,974,744 | | | | | | | | | | | | (1,773,275) | | | | | | | | | | | | 20,753,934 | | |
Noncontrolling interests | | | | | 34,147 | | | | | | 7,073 | | | | | | (5,930) | | | | | | 14 | | | | | | (1,157) | | | | | | | | | | | | 34,133 | | |
Total equity | | | | | 11,873,679 | | | | | | 6,720,006 | | | | | | 3,968,814 | | | | | | | | | | | | (1,774,432) | | | | | | | | | | | | 20,788,067 | | |
Total liabilities and equity | | | | $ | 21,984,941 | | | | | $ | 12,914,995 | | | | | $ | 5,151,962 | | | | | | | | | | | $ | (2,030,973) | | | | | | | | | | | $ | 38,020,925 | | |
| | | Realty Historical | | | VEREIT Historical, As Reclassified (Note 3) | | | Mergers Transaction Adjustments (Note 4) | | | Item in Note 4 | | | Orion Divestiture Transaction Adjustments (Note 5) 6 | | | Pro Forma Combined | | ||||||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rental (including reimbursable) | | | | $ | 899,621 | | | | | $ | 580,876 | | | | | $ | 31,801 | | | | | | 15 | | | | | $ | (106,509) | | | | | $ | 1,405,789 | | |
Other | | | | | 7,465 | | | | | | 7,955 | | | | | | — | | | | | | | | | | | | (492) | | | | | | 14,928 | | |
Total revenue | | | | | 907,086 | | | | | | 588,831 | | | | | | 31,801 | | | | | | | | | | | | (107,001) | | | | | | 1,420,717 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 365,774 | | | | | | 213,914 | | | | | | 161,369 | | | | | | 16 | | | | | | (41,387) | | | | | | 699,670 | | |
Interest | | | | | 146,749 | | | | | | 120,027 | | | | | | (35,792) | | | | | | 17 | | | | | | (4,619) | | | | | | 226,365 | | |
Property (including reimbursable) | | | | | 60,233 | | | | | | 59,779 | | | | | | 1,236 | | | | | | 18 | | | | | | (23,765) | | | | | | 97,483 | | |
General and administrative | | | | | 42,645 | | | | | | 27,759 | | | | | | 661 | | | | | | 19 | | | | | | (17) | | | | | | 71,048 | | |
Provisions for impairment | | | | | 19,966 | | | | | | 45,978 | | | | | | — | | | | | | | | | | | | (21,624) | | | | | | 44,320 | | |
Merger-related costs | | | | | 13,298 | | | | | | 12,673 | | | | | | — | | | | | | | | | | | | — | | | | | | 25,971 | | |
Total expenses | | | | | 648,665 | | | | | | 480,130 | | | | | | 127,474 | | | | | | | | | | | | (91,412) | | | | | | 1,164,857 | | |
Gain on sales of real estate | | | | | 23,302 | | | | | | 92,970 | | | | | | — | | | | | | | | | | | | — | | | | | | 116,272 | | |
Foreign currency and derivative gains, net | | | | | 1,204 | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | 1,204 | | |
Equity in income of unconsolidated entities | | | | | — | | | | | | 911 | | | | | | — | | | | | | | | | | | | (410) | | | | | | 501 | | |
Loss on extinguishment of debt | | | | | (46,473) | | | | | | (2,097) | | | | | | — | | | | | | | | | | | | 80 | | | | | | (48,490) | | |
Income before income taxes | | | | | 236,454 | | | | | | 200,485 | | | | | | (95,673) | | | | | | | | | | | | (15,919) | | | | | | 325,347 | | |
Income taxes | | | | | (15,450) | | | | | | (1,859) | | | | | | — | | | | | | | | | | | | — | | | | | | (17,309) | | |
Net income | | | | | 221,004 | | | | | | 198,626 | | | | | | (95,673) | | | | | | | | | | | | (15,919) | | | | | | 308,038 | | |
Net income attributable to noncontrolling interests | | | | | (585) | | | | | | (83) | | | | | | — | | | | | | | | | | | | (31) | | | | | | (699) | | |
Net income available to common stockholders | | | | $ | 220,419 | | | | | $ | 198,543 | | | | | $ | (95,673) | | | | | | | | | | | $ | (15,950) | | | | | $ | 307,339 | | |
Amounts available to common stockholders per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 6) | | |||
Basic and diluted | | | | $ | 0.59 | | | | | $ | 0.81 | | | | | | | | | | | | | | | | | | | | | | | $ | 0.57 | | |
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 6) | | |||
Basic | | | | | 372,879,165 | | | | | | 229,205,720 | | | | | | | | | | | | | | | | | | | | | | | | 534,621,683 | | |
Diluted | | | | | 372,971,744 | | | | | | 229,740,111 | | | | | | | | | | | | | | | | | | | | | | | | 534,775,234 | | |
| | Realty Historical, As Reclassified (Note 3) | | VEREIT Historical, As Reclassified (Note 3) | | Mergers Transaction Adjustments (Note 4) | | Item in Note 4 | | Orion Divestiture Transaction Adjustments (Note 5) 6 | | Item in Note 5 | | Pro Forma Combined | | | Realty Income Historical | | Spirit Historical, As Reclassified (Note 3) | | Pro Forma Transactions Adjustments (Note 4) | | Item in Note 4 | | Pro Forma Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Rental (including reimbursable) | | | $ | 1,639,533 | | | | $ | 1,158,285 | | | | $ | 50,207 | | | | | 15 | | | | $ | (223,778) | | | | | | | | | $ | 2,624,247 | | | | | $ | 3,299,657 | | | | $ | 703,029 | | | | $ | 36,775 | | | | | [13] | | | | $ | 4,039,461 | | | ||||||||||||
Other | | | | 12,092 | | | | | 9,691 | | | | | — | | | | | | | | | | (754) | | | | | | | | | | 21,029 | | | | | | 44,024 | | | | | 6,600 | | | | | 1,617 | | | | | [14] | | | | | 52,241 | | | ||||||||||||
Total revenue | | | | 1,651,625 | | | | | 1,167,976 | | | | | 50,207 | | | | | | | | | | (224,532) | | | | | | | | | | 2,645,276 | | | | | | 3,343,681 | | | | | 709,629 | | | | | 38,392 | | | | | | | | | | 4,091,702 | | | ||||||||||||
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Depreciation and amortization | | | | 677,038 | | | | | 452,008 | | | | | 302,365 | | | | | 16 | | | | | (88,612) | | | | | | | | | | 1,342,799 | | | | | | 1,670,389 | | | | | 292,985 | | | | | 42,623 | | | | | [15] | | | | | 2,005,997 | | | ||||||||||||
Interest | | | | 309,336 | | | | | 265,660 | | | | | (74,741) | | | | | 17 | | | | | (12,836) | | | | | | | | | | 487,419 | | | | | | 465,223 | | | | | 117,622 | | | | | 86,643 | | | | | [16] | | | | | 669,488 | | | ||||||||||||
Property (including reimbursable) | | | | 104,603 | | | | | 122,967 | | | | | 2,472 | | | | | 18 | | | | | (52,367) | | | | | | | | | | 177,675 | | | | | | 226,330 | | | | | 29,837 | | | | | 96 | | | | | [17] | | | | | 256,263 | | | ||||||||||||
General and administrative | | | | 73,215 | | | | | 68,487 | | | | | 1,874 | | | | | 19 | | | | | (40) | | | | | | | | | | 143,536 | | | | | | 138,459 | | | | | 62,023 | | | | | — | | | | | | | | | | 200,482 | | | ||||||||||||
Provisions for impairment | | | | 147,232 | | | | | 65,075 | | | | | — | | | | | | | | | | (27,977) | | | | | | | | | | 184,330 | | | | | | 25,860 | | | | | 37,156 | | | | | — | | | | | | | | | | 63,016 | | | ||||||||||||
Merger-related costs | | | | — | | | | | — | | | | | 127,592 | | | | | 20 | | | | | — | | | | | | | | | | 127,592 | | | ||||||||||||||||||||||||||||||||||||||
Merger and integration-related costs | | | | 13,897 | | | | | — | | | | | 82,069 | | | | | [18] | | | | | 95,966 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | | | | 1,311,424 | | | | | 974,197 | | | | | 359,562 | | | | | | | | | | (181,832) | | | | | | | | | | 2,463,351 | | | | | | 2,540,158 | | | | | 539,623 | | | | | 211,431 | | | | | | | | | | 3,291,212 | | | ||||||||||||
Gain on sales of real estate | | | | 76,232 | | | | | 95,292 | | | | | — | | | | | | | | | | (9,765) | | | | | | | | | | 161,759 | | | | | | 102,957 | | | | | 110,900 | | | | | — | | | | | | | | | | 213,857 | | | ||||||||||||
Foreign currency and derivative gains (losses), net | | | | 4,585 | | | | | (85,392) | | | | | — | | | | | | | | | | — | | | | | | | | | | (80,807) | | | ||||||||||||||||||||||||||||||||||||||
Equity in income and gain on disposition of unconsolidated entities | | | | — | | | | | 3,539 | | | | | — | | | | | | | | | | (535) | | | | | | | | | | 3,004 | | | ||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | | | | (9,819) | | | | | (1,486) | | | | | — | | | | | | | | | | (3,262) | | | | | 7 | | | | | (14,567) | | | ||||||||||||||||||||||||||||||||||||||
Foreign currency and derivative (loss), net | | | | (13,311) | | | | | — | | ��� | | | | — | | | | | | | | | | (13,311) | | | |||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on extinguishment of debt | | | | 367 | | | | | (172) | | | | | — | | | | | | | | | | 195 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity in income and impairment of investment in unconsolidated entities | | | | (6,448) | | | | | — | | | | | — | | | | | | | | | | (6,448) | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | | | | 30,511 | | | | | 5,679 | | | | | — | | | | | | | | | | 36,190 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | | | | 411,199 | | | | | 205,732 | | | | | (309,355) | | | | | | | | | | (56,262) | | | | | | | | | | 251,314 | | | | | | 917,599 | | | | | 286,413 | | | | | (173,039) | | | | | | | | | | 1,030,973 | | | ||||||||||||
Income taxes | | | | (14,693) | | | | | (4,513) | | | | | — | | | | | | | | | | — | | | | | | | | | | (19,206) | | | | | | (45,183) | | | | | (897) | | | | | — | | | | | | | | | | (46,080) | | | ||||||||||||
Net income | | | | 396,506 | | | | | 201,219 | | | | | (309,355) | | | | | | | | | | (56,262) | | | | | | | | | | 232,108 | | | | | | 872,416 | | | | | 285,516 | | | | | (173,039) | | | | | | | | | | 984,893 | | | ||||||||||||
Net income attributable to noncontrolling interests | | | | (1,020) | | | | | (91) | | | | | — | | | | | | | | | | (60) | | | | | | | | | | (1,171) | | | | | | (3,008) | | | | | — | | | | | — | | | | | | | | | | (3,008) | | | ||||||||||||
Dividends paid to preferred stockholders | | | | — | | | | | (10,350) | | | | | — | | | | | | | | | | (10,350) | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | | | $ | 395,486 | | | | $ | 201,128 | | | | $ | (309,355) | | | | | | | | | $ | (56,322) | | | | | | | | | $ | 230,937 | | | | | $ | 869,408 | | | | $ | 275,166 | | | | $ | (173,039) | | | | | | | | | $ | 971,535 | | | ||||||||||||
Amounts available to common stockholders per common share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 6) | | | | | | | | | | | | | | | | | | | | | | | (Note 5) | | ||||||||||||||||||
Basic | | | $ | 1.15 | | | | $ | 0.72 | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.46 | | | ||||||||||||||||||||||||||||||||||||||
Diluted | | | | 1.14 | | | | | 0.72 | | | | | | | | | | | | | | | | | | | | | | | | | 0.46 | | | ||||||||||||||||||||||||||||||||||||||
Net income, basic and diluted | | | $ | 1.42 | | | | $ | 2.04 | | | | | | | | | | | | | | $ | 1.35 | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Note 6) | | | | | | | | | | | | | | | | | | | | | | | (Note 5) | | ||||||||||||||||||
Basic | | | | 345,280,126 | | | | | 217,548,175 | | | | | | | | | | | | | | | | | | | | | | | | | 507,022,644 | | | | | | 611,766 | | | | | 134,548 | | | | | | | | | | | | | | | 720,162 | | | ||||||||||||
Diluted | | | | 345,415,258 | | | | | 217,862,005 | | | | | | | | | | | | | | | | | | | | | | | | | 507,232,603 | | | | | | 612,181 | | | | | 134,646 | | | | | | | | | | | | | | | 720,577 | | |
| | | September 30, 2023 | | |||
Land and improvements: | | | | $ | 2,742,072 | | |
Land (as presented) | | | | | 1,808,364 | | |
Building and improvements | | | | | 933,708 | | |
| | | June 30, 2021 | | |||
Rent and tenant receivables and other assets, net | | | | $ | 365,186 | | |
Less: Straight-line rent receivable, net | | | | | (284,003) | | |
Less: Accounts receivable, net | | | | | (47,229) | | |
Operating lease right-of-use assets | | | | | 188,628 | | |
Investment in unconsolidated entities | | | | | 80,487 | | |
Restricted cash | | | | | 9,584 | | |
Other assets, net, as presented | | | | $ | 312,653 | | |
| | | September 30, 2023 | | |||
Loans receivable, net | | | | $ | 52,949 | | |
Portion of deferred costs and other assets, net | | | | | 110,975 | | |
Real estate assets under direct financing leases, net | | | | | 7,404 | | |
Other assets, net (as presented) | | | | $ | 171,328 | | |
| | | June 30, 2021 | | |||
Straight-line rent receivable, net | | | | $ | 284,003 | | |
Accounts receivable, net | | | | | 47,229 | | |
Accounts receivable, net, as presented | | | | $ | 331,232 | | |
| | | September 30, 2023 | | |||
Accounts payable, accrued expenses and other liabilities: | | | | $ | 230,353 | | |
Distributions payable (as presented) | | | | | 99,571 | | |
Accounts payable and accrued expenses (as presented) | | | | | 69,045 | | |
Other liabilities (as presented) | | | | | 61,737 | | |
| | | September 30, 2023 | | |||
Common stock | | | | $ | 7,067 | | |
Capital in excess of common stock par value | | | | | 7,300,728 | | |
Common stock and paid-in capital (as presented) | | | | $ | 7,307,795 | | |
| | | For the nine months ended September 30, 2023 | | | For the year ended December 31, 2022 | | ||||||
Interest income on loans receivable | | | | $ | 3,919 | | | | | $ | 1,884 | | |
Earned income from direct financing leases | | | | | 393 | | | | | | 525 | | |
Other operating income | | | | | 4,888 | | | | | | 4,191 | | |
Other revenue (as presented) | | | | $ | 9,200 | | | | | $ | 6,600 | | |
| | | June 30, 2021 | | |||
Intangible lease assets | | | | $ | 1,908,178 | | |
Less: Accumulated amortization | | | | | (966,356) | | |
Lease intangible assets, net, as presented | | | | $ | 941,822 | | |
| | | June 30, 2021 | | |||
Deferred rent and other liabilities | | | | $ | 64,371 | | |
Operating lease liabilities | | | | | 199,561 | | |
Other liabilities, as presented | | | | $ | 263,932 | | |
| | | June 30, 2021 | | |||
Preferred stock | | | | $ | 149 | | |
Additional paid-in capital | | | | | 371,632 | | |
Preferred stock and paid-in capital, as presented | | | | $ | 371,781 | | |
| | | June 30, 2021 | | |||
Common stock | | | | $ | 2,291 | | |
Additional paid-in capital | | | | | 13,354,657 | | |
Less: Additional paid-in capital related to preferred stock | | | | | (371,632) | | |
Common stock and paid-in capital, as presented | | | | $ | 12,985,316 | | |
| | | For the six months ended June 30, 2021 | | | For the year ended December 31, 2020 | | ||||||
Fees from managed partnerships | | | | $ | 1,200 | | | | | $ | 3,081 | | |
Other income, net | | | | | 6,755 | | | | | | 6,610 | | |
Other, as presented | | | | $ | 7,955 | | | | | $ | 9,691 | | |
| | | For the six months ended June 30, 2021 | | | For the year ended December 31, 2020 | | ||||||
Acquisition-related | | | | $ | 2,782 | | | | | $ | 4,790 | | |
Litigation and non-routine costs, net | | | | | 6,673 | | | | | | 2,348 | | |
Less: Mergers costs | | | | | (12,673) | | | | | | — | | |
General and administrative | | | | | 30,977 | | | | | | 61,349 | | |
General and administrative, as presented | | | | $ | 27,759 | | | | | $ | 68,487 | | |
| | | Amount | | |||
Estimated shares of VEREIT common stock and VEREIT OP common units to be exchanged(a) | | | | | 229,301,649 | | |
Exchange Ratio | | | | | 0.705 | | |
Estimated shares of Realty common stock to be issued | | | | | 161,657,663 | | |
Closing price of Realty common stock on October 5, 2021(b) | | | | $ | 66.25 | | |
Estimated fair value of Realty common stock to be issued to former holders of VEREIT common stock and VEREIT OP common units | | | | $ | 10,709,820 | | |
Estimated fair value of VEREIT’s equity-based compensation awards attributable to pre-combination services(c) | | | | | 31,918 | | |
Consideration to be transferred | | | | $ | 10,741,738 | | |
Preliminary fair value of VEREIT debt assumed by Realty | | | | | 6,263,603 | | |
Total estimated preliminary purchase price | | | | $ | 17,005,341 | | |
| | | Amount | | |||
Shares of Spirit’s common stock to be exchanged(a) | | | | | 141,331,218 | | |
Exchange Ratio | | | | | 0.762 | | |
Shares of Realty Income common stock issued | | | | | 107,694,388 | | |
Closing price of Realty Income common stock on December 11, 2023 | | | | $ | 54.39 | | |
Estimated fair value of Realty Income common stock to be issued to the former holders of Spirit common stock | | | | $ | 5,857,498 | | |
Shares of Realty Income Series A preferred stock issued in exchange for Spirit Series A preferred stock(b) | | | | | 6,900,000 | | |
Closing price of Spirit Series A preferred stock on December 11, 2023(b) | | | | $ | 23.80 | | |
Estimated fair value of Realty Income Series A preferred stock to be issued to the former holders of Spirit Series A preferred stock | | | | $ | 164,220 | | |
Estimated fair value of Spirit’s performance share awards attributable to pre-combination services(c) | | | | $ | 21,538 | | |
Cash payment for accrued and unpaid dividend equivalents to Spirit performance share award holders to be settled by Realty Income(d) | | | | $ | 4,021 | | |
Less: estimated fair value of Spirit restricted stock awards attributable to post-combination costs(e) | | | | $ | (5,419) | | |
Total estimated preliminary purchase price | | | | $ | 6,041,858 | | |
| | | Amount | | |||
Total estimated preliminary purchase price | | | | $ | 6,041,858 | | |
Assets: | | | | | | | |
Real estate held for investment | | | | $ | 7,923,667 | | |
Real estate and lease intangibles held for sale | | | | | 92,800 | | |
Lease intangible assets | | | | | 1,233,730 | | |
Cash and cash equivalents(a) | | | | | 39,531 | | |
Accounts receivable | | | | | 14,581 | | |
Other assets | | | | | 159,543 | | |
Total assets acquired | | | | $ | 9,463,852 | | |
Liabilities: | | | | | | | |
Accounts payable and accrued expenses(b) | | | | $ | 127,045 | | |
Lease intangible liabilities | | | | | 391,491 | | |
Other liabilities | | | | | 61,737 | | |
Term loan | | | | | 1,100,705 | | |
Mortgages payable | | | | | 4,229 | | |
Notes payable | | | | | 2,339,854 | | |
Total liabilities assumed | | | | $ | 4,025,061 | | |
Estimated preliminary fair value of net assets acquired | | | | $ | 5,438,791 | | |
Goodwill | | | | $ | 603,067 | | |
| | | Amount | | |||
Total estimated preliminary purchase price | | | | $ | 17,005,341 | | |
Assets: | | | | | | | |
Real estate held for investment | | | | $ | 14,045,631 | | |
Real estate and lease intangibles held for sale | | | | | 38,874 | | |
Lease intangible assets | | | | | 2,820,780 | | |
Cash and cash equivalents(a) | | | | | 51,429 | | |
Accounts receivable | | | | | 47,229 | | |
Other assets | | | | | 326,678 | | |
Total assets acquired | | | | $ | 17,330,621 | | |
Liabilities: | | | | | | | |
Distributions payable(a) | | | | $ | 105,957 | | |
Accounts payable and accrued expenses(b) | | | | | 164,048 | | |
Lease intangible liabilities | | | | | 526,536 | | |
Other liabilities | | | | | 263,932 | | |
Line of credit payable and commercial paper(a) | | | | | 150,000 | | |
Mortgages payable | | | | | 1,047,575 | | |
Notes payable | | | | | 5,066,028 | | |
Total liabilities assumed | | | | $ | 7,324,076 | | |
Estimated preliminary fair value of net assets acquired | | | | $ | 10,006,545 | | |
Add: Estimated preliminary fair value of noncontrolling interests acquired | | | | | 1,143 | | |
Goodwill | | | | $ | 736,336 | | |
| | Estimated fair value | | Less: Elimination of historical carrying value | | Total pro forma adjustment | | | Estimated fair value | | Less: Elimination of historical gross carrying value | | Total pro forma adjustment | | ||||||||||||||||||||||||
Land | | | $ | 3,373,240 | | | | $ | (2,724,975) | | | | $ | 648,265 | | | | | $ | 1,857,452 | | | | $ | (1,808,364) | | | | $ | 49,088 | | | ||||||
Buildings and improvements | | | | 10,672,391 | | | | | (9,912,886) | | | | | 759,505 | | | | | | 6,066,215 | | | | | (7,015,086) | | | | | (948,871) | | |
| | | Amount | | |||
Preliminary allocation of fair value: | | | | | | | |
In-place leases | | | | $ | 2,146,346 | | |
Leasing commissions and marketing costs | | | | | 296,102 | | |
Above-market lease assets | | | | | 378,332 | | |
Less: Elimination of historical carrying value of lease intangible assets, net | | | | | (941,822) | | |
Total pro forma adjustment | | | | $ | 1,878,958 | | |
| | | Amount | | |||
Preliminary allocation of fair value: | | | | | | | |
In-place leases | | | | $ | 803,589 | | |
Leasing commissions, legal and marketing costs | | | | | 250,429 | | |
Above-market lease assets | | | | | 179,712 | | |
Less: Elimination of historical carrying value of lease intangible assets, net | | | | | (389,100) | | |
Total pro forma adjustment | | | | $ | 844,630 | | |
| | Mortgages payable | | Notes payable | | | Term loan, net | | Mortgages payable, net | | Notes payable, net | | ||||||||||||||||||||
Estimated fair value | | | $ | 1,047,575 | | | | $ | 5,066,028 | | | |||||||||||||||||||||
Less: Elimination of historical carrying value, including unamortized deferred financing costs and net discounts | | | | (1,002,496) | | | | | (4,588,286) | | | |||||||||||||||||||||
Elimination of historical carrying value of the remaining debt instruments, including unamortized deferred financing costs and net discounts | | | $ | (1,090,198) | | | | $ | (4,545) | | | | $ | (2,725,505) | | | ||||||||||||||||
Estimated pro forma fair value of liabilities assumed in the Merger | | | | 1,100,705 | | | | | 4,229 | | | | | 2,339,854 | | | ||||||||||||||||
Total pro forma adjustment | | | $ | 45,079 | | | | $ | 477,742 | | | | | $ | 10,507 | | | | $ | (316) | | | | $ | (385,651) | | |
| | | Preferred stock and paid-in capital | | | Common stock and paid-in capital | | | Distributions in excess of net income | | | Accumulated other comprehensive loss | | ||||||||||||
Issuance of Realty Income common stock(a) | | | | $ | — | | | | | $ | 5,873,617 | | | | | $ | — | | | | | $ | — | | |
Issuance of Realty Income Series A preferred stock(b) | | | | | 164,220 | | | | | | — | | | | | | — | | | | | | — | | |
Settlement of Spirit’s equity-based awards(c) | | | | | — | | | | | | 22,069 | | | | | | (22,069) | | | | | | — | | |
Spirit transaction – related costs(d) | | | | | — | | | | | | — | | | | | | (58,000) | | | | | | — | | |
Elimination of Spirit’s historical equity balances(e) | | | | | (166,177) | | | | | | (7,307,795) | | | | | | 3,094,475 | | | | | | (55,296) | | |
Realty Income transaction-related costs(f) | | | | | — | | | | | | — | | | | | | (60,000) | | | | | | — | | |
Total pro forma adjustment | | | | $ | (1,957) | | | | | $ | (1,412,109) | | | | | $ | 2,954,406 | | | | | $ | (55,296) | | |
| | | Preferred stock and paid-in capital | | | Common stock and paid-in capital | | | Distributions in excess of net income | | | Accumulated other comprehensive (loss) income | | ||||||||||||
Redemption of the VEREIT Series F Preferred Stock(a) | | | | $ | (371,781) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Realty common stock(b) | | | | | — | | | | | | 10,709,820 | | | | | | — | | | | | | — | | |
Settlement and exchange of VEREIT equity-based awards(c) | | | | | — | | | | | | 31,918 | | | | | | — | | | | | | — | | |
Elimination of VEREIT’s historical equity balances | | | | | — | | | | | | (12,985,316) | | | | | | 6,644,896 | | | | | | (732) | | |
Realty merger related costs(d)(e) | | | | | — | | | | | | 26,928 | | | | | | (80,989) | | | | | | — | | |
Total pro forma adjustment | | | | $ | (371,781) | | | | | $ | (2,216,650) | | | | | $ | 6,563,907 | | | | | $ | (732) | | |
| | | Elimination of historical amounts(a) | | | Recognition of post-combination amounts(b) | | | Total pro forma adjustment | | |||||||||
For the six months ended June 30, 2021 | | | | | | | | | | | | | | | | | | | |
Straight-line rents | | | | $ | (10,612) | | | | | $ | 31,243 | | | | | $ | 20,631 | | |
Amortization of above-market and below-market lease intangibles and deferred lease incentives | | | | | 3,101 | | | | | | 8,069 | | | | | | 11,170 | | |
Total pro forma adjustment | | | | $ | (7,511) | | | | | $ | 39,312 | | | | | $ | 31,801 | | |
For the year ended December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Straight-line rents | | | | $ | (24,219) | | | | | $ | 54,761 | | | | | $ | 30,542 | | |
Amortization of above-market and below-market lease intangibles and deferred lease incentives | | | | | 3,527 | | | | | | 16,138 | | | | | | 19,665 | | |
Total pro forma adjustment | | | | $ | (20,692) | | | | | $ | 70,899 | | | | | $ | 50,207 | | |
| | | Elimination of historical amounts | | | Recognition of post-combination amounts(a) | | | Total pro forma adjustment | | |||||||||
For the nine months ended September 30, 2023 | | | | | | | | | | | | | | | | | | | |
Straight-line rent, net | | | | $ | (26,127) | | | | | $ | 35,555 | | | | | $ | 9,428 | | |
Amortization of above-market and below-market lease intangibles and deferred lease incentives, net | | | | | (767) | | | | | | 15,583 | | | | | | 14,816 | | |
Total pro forma adjustment | | | | $ | (26,894) | | | | | $ | 51,138 | | | | | $ | 24,244 | | |
For the year ended December 31, 2022 | | | | | | | | | | | | | | | | | | | |
Straight-line rent, net | | | | $ | (36,902) | | | | | $ | 55,090 | | | | | $ | 18,188 | | |
Amortization of above-market and below-market lease intangibles and deferred lease incentives, net | | | | | (2,190) | | | | | | 20,777 | | | | | | 18,587 | | |
Total pro forma adjustment | | | | $ | (39,092) | | | | | $ | 75,867 | | | | | $ | 36,775 | | |
| | For the six months ended June 30, 2021 | | For the year ended December 31, 2020 | | | For the nine months ended September 30, 2023 | | For the year ended December 31, 2022 | | ||||||||||||||||
Buildings and improvements(a) | | | $ | 157,961 | | | | $ | 315,922 | | | | | $ | 150,215 | | | | $ | 200,286 | | | ||||
Tenant improvements(a) | | | | 57,645 | | | | | 115,290 | | | | | | 23,957 | | | | | 31,943 | | | ||||
In-place leases and leasing commissions and marketing costs (a) | | | | 130,239 | | | | | 260,478 | | | | | | 77,535 | | | | | 103,379 | | | ||||
Less: Elimination of historical depreciation and amortization | | | | (184,476) | | | | | (389,325) | | | | | | (236,527) | | | | | (292,985) | | | ||||
Total pro forma adjustment | | | $ | 161,369 | | | | $ | 302,365 | | | | | $ | 15,180 | | | | $ | 42,623 | | |
| | | For the six months ended June 30, 2021 | | | For the year ended December 31, 2020 | | ||||||
Elimination of historical deferred financing costs amortization | | | | $ | (5,229) | | | | | $ | (14,896) | | |
Elimination of historical amortization of net (discounts)/premiums | | | | | (1,037) | | | | | | 928 | | |
Amortization of the fair value adjustment on mortgages and notes payable | | | | | (30,351) | | | | | | (62,424) | | |
Incremental interest expense on VEREIT’s Revolving Credit Facility | | | | | 825 | | | | | | 1,651 | | |
Total pro forma adjustment | | | | $ | (35,792) | | | | | $ | (74,741) | | |
| | | For the nine months ended September 30, 2023 | | | For the year ended December 31, 2022 | | ||||||
Elimination of Spirit historical deferred financing costs amortization | | | | $ | (5,944) | | | | | $ | (5,410) | | |
Elimination of Spirit historical amortization of net discounts | | | | | (982) | | | | | | (1,269) | | |
Amortization of the fair value adjustment on swap assets, term loan, mortgages and notes payable | | | | | 69,992 | | | | | | 93,322 | | |
Total pro forma adjustment | | | | $ | 63,066 | | | | | $ | 86,643 | | |
| | | Realty Office Assets | | | VEREIT Office Assets | | | Total Orion Business | | |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
Real estate held for investment, at cost: | | | | | | | | | | | | | | | | | | | |
Land | | | | $ | 71,191 | | | | | $ | 366,290 | | | | | $ | 437,481 | | |
Buildings and improvements | | | | | 562,904 | | | | | | 1,129,185 | | | | | | 1,692,089 | | |
Total real estate held for investment, at cost | | | | | 634,095 | | | | | | 1,495,475 | | | | | | 2,129,570 | | |
Less accumulated depreciation and amortization | | | | | (144,865) | | | | | | — | | | | | | (144,865) | | |
Real estate held for investment, net | | | | | 489,230 | | | | | | 1,495,475 | | | | | | 1,984,705 | | |
Cash and cash equivalents | | | | | — | | | | | | 1,300 | | | | | | 1,300 | | |
Accounts receivable, net | | | | | 7,948 | | | | | | 7,670 | | | | | | 15,618 | | |
Lease intangible assets, net | | | | | 25,147 | | | | | | 271,600 | | | | | | 296,747 | | |
Goodwill | | | | | — | | | | | | 116,358 | | | | | | 116,358 | | |
Other assets, net | | | | | 8,702 | | | | | | 26,319 | | | | | | 35,021 | | |
Total assets | | | | $ | 531,027 | | | | | $ | 1,918,722 | | | | | $ | 2,449,749 | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 1,594 | | | | | $ | 7,978 | | | | | $ | 9,572 | | |
Lease intangible liabilities, net | | | | | 6,406 | | | | | | 33,950 | | | | | | 40,356 | | |
Other liabilities | | | | | 4,706 | | | | | | 14,001 | | | | | | 18,707 | | |
Mortgages payable, net | | | | | 22,732 | | | | | | 165,174 | | | | | | 187,906 | | |
Total liabilities | | | | $ | 35,438 | | | | | $ | 221,103 | | | | | $ | 256,541 | | |
| | | Amount | | |||
Repayment of certain existing mortgages payable of Realty Office Assets and VEREIT Office Assets, including prepayment costs | | | | $ | (177,033) | | |
Reimbursement by Orion of amounts paid by Realty with respect to certain existing mortgages payable of Realty Office Assets and VEREIT Office Assets (including a portion of the associated repayment costs) | | | | | 170,809 | | |
Proceeds from the Orion LP new financing arrangements distributed by Orion to Realty | | | | | 425,000 | | |
Cash and cash equivalents attributable to VEREIT Office Assets | | | | | (1,300) | | |
Total pro forma adjustment | | | | $ | 417,476 | | |
| | | Realty Office Assets | | | VEREIT Office Assets | | | Total Orion Business | | |||||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Rental (including reimbursable) | | | | $ | 25,615 | | | | | $ | 80,894 | | | | | $ | 106,509 | | |
Other | | | | | — | | | | | | 492 | | | | | | 492 | | |
Total revenue | | | | | 25,615 | | | | | | 81,386 | | | | | | 107,001 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 11,943 | | | | | | 29,444 | | | | | | 41,387 | | |
Interest | | | | | 803 | | | | | | 3,816 | | | | | | 4,619 | | |
Property (including reimbursable) | | | | | 2,951 | | | | | | 20,814 | | | | | | 23,765 | | |
General and administrative | | | | | — | | | | | | 17 | | | | | | 17 | | |
Provisions for impairment | | | | | — | | | | | | 21,624 | | | | | | 21,624 | | |
Total expenses | | | | | 15,697 | | | | | | 75,715 | | | | | | 91,412 | | |
Equity in income of unconsolidated entities | | | | | — | | | | | | 410 | | | | | | 410 | | |
Loss on extinguishment of debt | | | | | — | | | | | | (80) | | | | | | (80) | | |
Income before income taxes | | | | | 9,918 | | | | | | 6,001 | | | | | | 15,919 | | |
Income taxes | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | 9,918 | | | | | | 6,001 | | | | | | 15,919 | | |
Net income attributable to noncontrolling interests | | | | | — | | | | | | 31 | | | | | | 31 | | |
Net income available to common stockholders | | | | $ | 9,918 | | | | | $ | 6,032 | | | | | $ | 15,950 | | |
| | | Realty Office Assets | | | VEREIT Office Assets | | | Total Orion Business | | |||||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Rental (including reimbursable) | | | | $ | 53,474 | | | | | $ | 170,304 | | | | | $ | 223,778 | | |
Other | | | | | — | | | | | | 754 | | | | | | 754 | | |
Total revenue | | | | | 53,474 | | | | | | 171,058 | | | | | | 224,532 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 25,950 | | | | | | 62,662 | | | | | | 88,612 | | |
Interest | | | | | 2,931 | | | | | | 9,905 | | | | | | 12,836 | | |
Property (including reimbursable) | | | | | 5,770 | | | | | | 46,597 | | | | | | 52,367 | | |
General and administrative | | | | | — | | | | | | 40 | | | | | | 40 | | |
Provisions for impairment | | | | | 18,671 | | | | | | 9,306 | | | | | | 27,977 | | |
Total expenses | | | | | 53,322 | | | | | | 128,510 | | | | | | 181,832 | | |
Gain on sales of real estate | | | | | — | | | | | | 9,765 | | | | | | 9,765 | | |
Equity in income and gain on disposition of unconsolidated entities | | | | | — | | | | | | 535 | | | | | | 535 | | |
Loss on extinguishment of debt | | | | | — | | | | | | (1,686) | | | | | | (1,686) | | |
Income before income taxes | | | | | 152 | | | | | | 51,162 | | | | | | 51,314 | | |
| | | Realty Office Assets | | | VEREIT Office Assets | | | Total Orion Business | | |||||||||
Income taxes | | | | | — | | | | | | — | | | | | | — | | |
Net income | | | | | 152 | | | | | | 51,162 | | | | | | 51,314 | | |
Net income attributable to noncontrolling interests | | | | | — | | | | | | 60 | | | | | | 60 | | |
Net income available to common stockholders | | | | $ | 152 | | | | | $ | 51,222 | | | | | $ | 51,374 | | |
|
| | For the six months ended June 30, 2021 | | For the year ended December 31, 2020 | | | For the nine months ended September 30, 2023 | | For the year ended December 31, 2022 | | ||||||||||||||||
Numerator | | | | | | | | | | | | | | | | | | | | | | | ||||
Pro forma net income available to common stockholders | | | $ | 307,339 | | | | $ | 230,937 | | | | | $ | 782,101 | | | | $ | 971,535 | | | ||||
Denominator | | | | | | | | | | | | | | | | | | | | | | | ||||
Realty historical weighted average common shares outstanding | | | | 372,879,165 | | | | | 345,280,126 | | | |||||||||||||||
VEREIT common stock and VEREIT OP common units converted into Realty common stock (229,301,649 shares and units outstanding, multiplied by the Exchange Ratio of 0.705) | | | | 161,657,663 | | | | | 161,657,663 | | | |||||||||||||||
VEREIT DSU Awards converted into Realty common stock (120,362 units, multiplied by the Exchange Ratio of 0.705) | | | | 84,855 | | | | | 84,855 | | | |||||||||||||||
Realty Income historical weighted average common shares outstanding | | | | 681,419 | | | | | 611,766 | | | |||||||||||||||
Spirit’s common stock converted into Realty Income common stock (141,331 shares and units outstanding, multiplied by the Exchange Ratio of 0.762) | | | | 107,694 | | | | | 107,694 | | | |||||||||||||||
Spirit’s performance share awards converted into Realty Income common stock (921 shares and units outstanding, multiplied by the Exchange Ratio of 0.762) | | | | 702 | | | | | 702 | | | |||||||||||||||
Pro forma weighted average common shares outstanding – basic | | | | 534,621,683 | | | | | 507,022,644 | | | | | | 789,815 | | | | | 720,162 | | | ||||
Realty historical weighted average dilutive shares | | | | 92,579 | | | | | 135,132 | | | |||||||||||||||
Unvested VEREIT equity-based awards exchanged into Realty equity-based awards | | | | 60,972 | | | | | 74,827 | | | |||||||||||||||
Pro forma weighted average Realty common shares outstanding – diluted | | | | 534,775,234 | | | | | 507,232,603 | | | |||||||||||||||
Realty Income historical weighted average dilutive shares | | | | 710 | | | | | 415 | | | |||||||||||||||
Pro forma weighted average Realty Income common shares outstanding – diluted | | | | 790,525 | | | | | 720,577 | | | |||||||||||||||
Pro forma amounts of net income available to common stockholders per common share: | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | $ | 0.57 | | | | $ | 0.46 | | | | | $ | 0.99 | | | | $ | 1.35 | | |
| | | | | | | As of June 30, 2021 | | | As of September 30, 2023 | | |||||||||||||||||||||||||||
| | Realty Actual | | VEREIT Actual | | Pro Forma As Adjusted | | | Realty Actual(1) | | Spirit Actual(1) | | Pro Forma As Adjusted(1) | | ||||||||||||||||||||||||
| | | | | | | (in thousands, except par value and shares) | | | (in thousands, except par value and shares) | | |||||||||||||||||||||||||||
Cash and cash equivalents | | | $ | 231,164 | | | | $ | 275,496 | | | | $ | 700,069 | | | | | $ | 344,129 | | | | $ | 134,166 | | | | $ | 321,639 | | | ||||||
Short-term debt | | | $ | 1,298,706 | | | | | 15,705 | | | | | 1,314,411 | | | ||||||||||||||||||||||
Realty Long-term debt: | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
4.650% Notes due 2023 | | | $ | 750,000 | | | | $ | — | | | | $ | 750,000 | | | ||||||||||||||||||||||
Line of credit payable and commercial paper | | | $ | 858,260 | | | | $ | — | | | | $ | 858,260 | | | ||||||||||||||||||||||
Realty Long-term debt(2): | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
4.600% Notes due 2024 | | | $ | 499,999 | | | | $ | — | | | | $ | 499,999 | | | ||||||||||||||||||||||
3.875% Notes due 2024 | | | | 350,000 | | | | | — | | | | | 350,000 | | | | | | 350,000 | | | | | — | | | | | 350,000 | | | ||||||
3.875% Notes due 2025 | | | | 500,000 | | | | | — | | | | | 500,000 | | | | | | 500,000 | | | | | — | | | | | 500,000 | | | ||||||
4.625% Notes due 2025 | | | | 549,997 | | | | | — | | | | | 549,997 | | | ||||||||||||||||||||||
5.050% Notes due 2026 | | | | 500,000 | | | | | — | | | | | 500,000 | | | ||||||||||||||||||||||
0.750% Notes due 2026 | | | | 325,000 | | | | | — | | | | | 325,000 | | | | | | 325,000 | | | | | — | | | | | 325,000 | | | ||||||
4.875% Notes due 2026 | | | | 599,997 | | | | | — | | | | | 599,997 | | | ||||||||||||||||||||||
4.125% Notes due 2026 | | | | 650,000 | | | | | — | | | | | 650,000 | | | | | | 650,000 | | | | | — | | | | | 650,000 | | | ||||||
1.875% Notes due 2027 | | | | 305,075 | | | | | — | | | | | 305,075 | | | ||||||||||||||||||||||
3.000% Notes due 2027 | | | | 600,000 | | | | | — | | | | | 600,000 | | | | | | 600,000 | | | | | — | | | | | 600,000 | | | ||||||
1.125% Notes due 2027 | | | | 488,120 | | | | | — | | | | | 488,120 | | | ||||||||||||||||||||||
3.950% Notes due 2027 | | | | 599,873 | | | | | — | | | | | 599,873 | | | ||||||||||||||||||||||
3.650% Notes due 2028 | | | | 550,000 | | | | | — | | | | | 550,000 | | | | | | 550,000 | | | | | — | | | | | 550,000 | | | ||||||
3.400% Notes due 2028 | | | | 599,816 | | | | | — | | | | | 599,816 | | | ||||||||||||||||||||||
2.200% Notes due 2028 | | | | 499,959 | | | | | — | | | | | 499,959 | | | ||||||||||||||||||||||
4.700% Notes due 2028 | | | | 400,000 | | | | | — | | | | | 400,000 | | | ||||||||||||||||||||||
3.250% Notes due 2029 | | | | 500,000 | | | | | — | | | | | 500,000 | | | | | | 500,000 | | | | | — | | | | | 500,000 | | | ||||||
3.100% Notes due 2029 | | | | 599,291 | | | | | — | | | | | 599,291 | | | ||||||||||||||||||||||
4.850% Notes due 2030 | | | | 600,000 | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
3.160% Notes due 2030 | | | | 170,842 | | | | | — | | | | | 170,842 | | | ||||||||||||||||||||||
4.875% Notes due 2030 | | | | 582,120 | | | | | — | | | | | 582,120 | | | ||||||||||||||||||||||
1.625% Notes due 2030 | | | | 552,440 | | | | | — | | | | | 552,440 | | | | | | 488,120 | | | | | — | | | | | 488,120 | | | ||||||
3.250% Notes due 2031 | | | | 950,000 | | | | | — | | | | | 950,000 | | | ||||||||||||||||||||||
1.800% Notes due 2033 | | | | 400,000 | | | | | — | | | | | 400,000 | | | ||||||||||||||||||||||
2.730% Notes due 2034 | | | | 435,047 | | | | | — | | | | | 435,047 | | | ||||||||||||||||||||||
5.875% Notes due 2035 | | | | 250,000 | | | | | — | | | | | 250,000 | | | ||||||||||||||||||||||
4.650% Notes due 2047 | | | | 550,000 | | | | | — | | | | | 550,000 | | | ||||||||||||||||||||||
4.600% Notes due 2024 | | | | — | | | | | — | | | | | 500,000 | | | ||||||||||||||||||||||
4.625% Notes due 2025 | | | | — | | | | | — | | | | | 550,000 | | | ||||||||||||||||||||||
4.875% Notes due 2026 | | | | — | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
3.950% Notes due 2027 | | | | — | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
3.400% Notes due January 2028 | | | | — | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
2.200% Notes due June 2028 | | | | — | | | | | — | | | | | 500,000 | | | ||||||||||||||||||||||
3.100% Notes due 2029 | | | | — | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
2.850% Notes due 2032 | | | | — | | | | | — | | | | | 700,000 | | | ||||||||||||||||||||||
VEREIT Long-term debt: | | | $ | | | | | | | | | | | | |
| | | | | | | As of June 30, 2021 | | | As of September 30, 2023 | | |||||||||||||||||||||||||||
| | Realty Actual | | VEREIT Actual | | Pro Forma As Adjusted | | | Realty Actual(1) | | Spirit Actual(1) | | Pro Forma As Adjusted(1) | | ||||||||||||||||||||||||
| | | | | | | (in thousands, except par value and shares) | | | (in thousands, except par value and shares) | | |||||||||||||||||||||||||||
4.600% Notes due 2024 | | | | — | | | | | 500,000 | | | | | — | | | ||||||||||||||||||||||
4.625% Notes due 2025 | | | | — | | | | | 550,000 | | | | | — | | | ||||||||||||||||||||||
4.875% Notes due 2026 | | | | — | | | | | 600,000 | | | | | — | | | ||||||||||||||||||||||
3.950% Notes due 2027 | | | | — | | | | | 600,000 | | | | | — | | | ||||||||||||||||||||||
3.400% Notes due January 2028 | | | | — | | | | | 600,000 | | | | | — | | | ||||||||||||||||||||||
2.200% Notes due June 2028 | | | | — | | | | | 500,000 | | | | | — | | | ||||||||||||||||||||||
3.100% Notes due 2029 | | | | — | | | | | 600,000 | | | | | — | | | ||||||||||||||||||||||
3.250% Notes due 2031 | | | | 950,000 | | | | | — | | | | | 950,000 | | | ||||||||||||||||||||||
3.180% Notes due 2032 | | | | 421,004 | | | | | — | | | | | 421,004 | | | ||||||||||||||||||||||
5.625% Notes due 2032 | | | | 750,000 | | | | | — | | | | | 750,000 | | | ||||||||||||||||||||||
2.850% Notes due 2032 | | | | — | | | | | 700,000 | | | | | — | | | | | | 699,655 | | | | | — | | | | | 699,655 | | | ||||||
1.800% Notes due 2033 | | | | 400,000 | | | | | — | | | | | 400,000 | | | ||||||||||||||||||||||
1.750% Notes due 2033 | | | | 427,105 | | | | | — | | | | | 427,105 | | | ||||||||||||||||||||||
4.900% Notes due 2033 | | | | 600,000 | | | | | — | | | | | 600,000 | | | ||||||||||||||||||||||
2.730% Notes due 2034 | | | | 384,395 | | | | | — | | | | | 384,395 | | | ||||||||||||||||||||||
5.125% Notes due 2034 | | | | 582,120 | | | | | — | | | | | 582,120 | | | ||||||||||||||||||||||
5.875% Notes due 2035 | | | | 250,000 | | | | | — | | | | | 250,000 | | | ||||||||||||||||||||||
3.390% Notes due 2037 | | | | 140,335 | | | | | — | | | | | 140,335 | | | ||||||||||||||||||||||
2.500% Notes due 2042 | | | | 305,075 | | | | | — | | | | | 305,075 | | | ||||||||||||||||||||||
4.650% Notes due 2047 | | | | 550,000 | | | | | — | | | | | 550,000 | | | ||||||||||||||||||||||
New 4.450% Notes due 2026 | | | | — | | | | | — | | | | | 300,000 | | | ||||||||||||||||||||||
New 3.200% Notes due 2027 | | | | — | | | | | — | | | | | 300,000 | | | ||||||||||||||||||||||
New 2.100% Notes due 2028 | | | | — | | | | | — | | | | | 450,000 | | | ||||||||||||||||||||||
New 4.000% Notes due 2029 | | | | — | | | | | — | | | | | 400,000 | | | ||||||||||||||||||||||
New 3.400% Notes due 2030 | | | | — | | | | | — | | | | | 500,000 | | | ||||||||||||||||||||||
New 3.200% Notes due 2031 | | | | — | | | | | — | | | | | 450,000 | | | ||||||||||||||||||||||
New 2.700% Notes due 2032 | | | | — | | | | | — | | | | | 350,000 | | | ||||||||||||||||||||||
Spirit Long-term debt: | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
4.450% Notes due 2026 | | | | — | | | | | 300,000 | | | | | — | | | ||||||||||||||||||||||
3.200% Notes due 2027 | | | | — | | | | | 300,000 | | | | | — | | | ||||||||||||||||||||||
2.100% Notes due 2028 | | | | — | | | | | 450,000 | | | | | — | | | ||||||||||||||||||||||
4.000% Notes due 2029 | | | | — | | | | | 400,000 | | | | | — | | | ||||||||||||||||||||||
3.400% Notes due 2030 | | | | — | | | | | 500,000 | | | | | — | | | ||||||||||||||||||||||
3.200% Notes due 2031 | | | | — | | | | | 450,000 | | | | | — | | | ||||||||||||||||||||||
2.700% Notes due 2032 | | | | — | | | | | 350,000 | | | | | — | | | ||||||||||||||||||||||
Other long-term debt: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Term loan | | | | 250,000 | | | | | — | | | | | 250,000 | | | ||||||||||||||||||||||
Long-term mortgages payable | | | | 286,501 | | | | | 991,403 | | | | | 1,277,904 | | | ||||||||||||||||||||||
Total Liabilities | | | $ | 10,111,262 | | | | $ | 6,194,989 | | | | $ | 17,232,858 | | | ||||||||||||||||||||||
Term loans, net | | | | 1,287,995 | | | | | 1,090,198 | | | | | 2,388,700 | | | ||||||||||||||||||||||
Mortgages payable, net | | | | 824,240 | | | | | 4,545 | | | | | 828,469 | | | ||||||||||||||||||||||
Total debt | | | $ | 20,338,393 | | | | $ | 3,844,743 | | | | $ | 24,243,327 | | | ||||||||||||||||||||||
Preferred stock and paid-in capital | | | $ | — | | | | $ | 371,781 | | | | $ | — | | | | | $ | — | | | | $ | 166,177 | | | | $ | 160,011 | | | ||||||
Common stock and paid-in capital | | | | 15,827,231 | | | | | 12,985,316 | | | | | 26,595,897 | | | | | | 38,031,829 | | | | | 7,307,795 | | | | | 43,795,907 | | | ||||||
Distributions in excess of net income | | | | (3,968,333) | | | | | (6,644,896) | | | | | (5,822,597) | | | | | | (6,416,534) | | | | | (3,036,475) | | | | | (6,494,768) | | | ||||||
Accumulated other comprehensive (loss) income | | | | (19,366) | | | | | 732 | | | | | (19,336) | | | | | | 41,849 | | | | | 55,296 | | | | | 41,849 | | | ||||||
Noncontrolling interest | | | | 34,147 | | | | | 7,073 | | | | | 34,133 | | | | | | 166,274 | | | | | — | | | | | 166,274 | | | ||||||
Total equity | | | | 11,873,679 | | | | | 6,720,006 | | | | | 20,788,067 | | | | | | 31,823,418 | | | | | 4,492,793 | | | | | 37,669,273 | | | ||||||
Total capitalization | | | $ | 21,984,941 | | | | $ | 12,914,995 | | | | $ | 38,020,925 | | | | | $ | 52,161,811 | | | | $ | 8,337,536 | | | | $ | 61,912,600 | | | |
| Aggregate Principal Amount | | | Series of Notes Issued by Spirit | | | Series of Notes to be Issued by | | | Semi-Annual Interest Payment Dates for Both Realty Notes | |
| $ | | | ||||||||
| | | | | |||||||
| $ | | | | | | | January 15 and July 15 | | ||
| $450,000,000 | | | 2.100% Notes due 2028 | | | 2.100% Notes due 2028 | | | March 15 and September 15 | |
| $400,000,000 | | | 4.000% Notes due 2029 | | | 4.000% Notes due 2029 | | | January 15 and July 15 | |
| $500,000,000 | | | 3.400% Notes due 2030 | | | 3.400% Notes due 2030 | | | January 15 and July 15 | |
| $450,000,000 | | | 3.200% Notes due 2031 | | | 3.200% Notes due 2031 | | | February 15 and August 15 | |
| $ | | | ||||||||
| | | | |
| | | | | New Realty Notes | | |
| | | | | Realty Form of Note | | |
Limitation on Incurrence of Total Debt | | | | | The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 60% of the sum of (i) the Company’s Total Assets as of the end of the latest fiscal quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not required under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the Trustee) prior to | |
| | | | | New Realty Notes | | |
| | | | | As used in the Realty Indenture, the term “Company” means, in general, Realty Income Corporation and its successors under the Realty Indenture (in each case excluding its subsidiaries), and the term “Commission” means, in general, the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of the Realty Indenture such Commission is not existing and performing the duties then assigned to it under the Trust Indenture Act of 1939, as amended, then the body performing such duties on such date. | | |
Limitation on Incurrence of Secured Debt | | | | | Realty Form of Note | | |
| | | | | The Company will not, and will not permit any Subsidiary to, incur any Secured Debt, other than Intercompany Debt, if, immediately after giving effect to the incurrence of such additional Secured Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Secured Debt of the |
|
| | | Spirit Notes | | | New Realty Notes | |
| | | basis for borrowed money that is secured by any mortgage, lien, charge, pledge, encumbrance or security interest on the Guarantor’s property or the property of any of its Subsidiaries is greater than 40% of the sum of | | | | |
Debt Service Coverage | | | | | Realty Form of Note | | |
| | | | | The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if the ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1.0, on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds therefrom, and calculated on the assumption that (i) such Debt and any other Debt incurred by the | |
| | | | | New Realty Notes | | |
| | | | | |
| | | | | New Realty Notes | | |
| | | adjustments with respect to such acquisition or disposition being included in such pro forma calculation. If the Debt giving rise to the need to make the calculation described in this Section 6.1 or any other Debt incurred after the first day of the relevant quarterly period bears interest at a floating rate (to the extent such Debt has been hedged to bear interest at a fixed rate, only the portion of such Debt, if any, that has not been so hedged), then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt will be computed on a pro forma basis as if the average interest rate that would have been in effect during the entire such | | | | |
Maintenance of Total Unencumbered Assets | | | | | Realty Form of Note The Company will maintain at all times Total Unencumbered Assets of not less than 150% of the aggregate outstanding principal amount of the Unsecured Debt of the Company and its Subsidiaries, computed on a consolidated basis in accordance with GAAP. | | |
Events of Default | | | Section | | | Section 501 of the Realty Indenture | |
| | | | | “Event of Default,” wherever used herein with respect to any particular series of Securities, means any one of the following events (whatever the reason for such Event of Default and whether or not it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): | | |
| | | | | (1) default in the payment of any interest upon or any Additional Amounts payable in respect of any | |
| | | Spirit Notes | | | New Realty Notes | |
| | | | | | Security of that series or of any coupon appertaining thereto, when such interest, Additional Amounts or coupon becomes due and payable, and continuance of such default for a period of 30 days (no Additional Amounts (as defined in the Realty Indenture) are payable with respect to the Realty Notes of any series); or | |
| | | | | (2) default in the payment of the principal of (or premium, if any, on) any Security of that series when it becomes due and payable, whether at Stated Maturity or by declaration of acceleration, notice of redemption, notice of option to elect repayment or otherwise; or | |
| | | |||||
| | (3) default in the deposit of any sinking fund payment, when and as due by the terms of any Security of that series; or | | ||||
| | | | | (4) default in the performance, or breach, of any covenant or warranty of the Company in this Indenture or in any Security of that series (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section 501 specifically dealt with or which has been expressly included in this Indenture solely for the benefit of one or more series of Securities other than such series), and continuance of such default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying |
such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or | | ||||||
| | | | | New Realty Notes | | ||||
| | | | | (5) default under any bond, debenture, note or other | evidence of indebtedness for money borrowed by the Company or any of its Subsidiaries (including obligations under leases required to be capitalized on the balance sheet of the lessee under generally accepted accounting principles, but not including any indebtedness or obligations for which recourse is limited to property purchased) in an aggregate principal amount in excess of $25,000,000 or under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness for money borrowed by the Company or any of its Subsidiaries (including such leases, but not including such indebtedness or obligations for which recourse is limited to property purchased) in an aggregate principal amount in excess of $25,000,000, whether such indebtedness exists on the date of this Indenture or shall thereafter be created, which default shall have resulted in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable or such obligations being accelerated, without such acceleration having been rescinded or annulled; or | | |||
| | | | | (6) the Company or any Significant Subsidiary of the Company pursuant to or within the meaning of any Bankruptcy Law: | | ||||
| | | (i) commences a voluntary case or proceeding seeking liquidation, reorganization or other relief with respect to the Company, the Guarantor or a Significant Subsidiary or its debts or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company, the Guarantor or a | | | (A) commences a voluntary case or proceeding or files a petition or answer or consent seeking reorganization or relief or consents to the filing of such petition; | |
| | | Spirit Notes | | | New Realty Notes | |
| | | Significant Subsidiary or any substantial part of the property of the Company, the Guarantor or a Significant Subsidiary; or | | | | |
| | | (ii) consents to any such relief or to the | | | (B) consents to the entry of an order for relief against it in an involuntary case or proceeding |
or to the commencement of any case or proceeding against it; | | ||||||
| | | (iii) consents to the appointment of a | | | (C) consents to the appointment of a Custodian of it or for all or any substantial part of its property; or | |
| | | (iv) makes a general assignment for the benefit of | | | (D) makes a general assignment for the benefit of its creditors; or | |
| | | | | | | |
| | | (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that | | | (7) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: | |
| | | (i) is for relief against | | | (A) is for relief against the Company or any Significant Subsidiary of the Company in an involuntary case or proceeding or adjudges the Company or any Significant Subsidiary of the | |
| | | Spirit Notes | | | New Realty Notes | |
| | | | | | Company as bankrupt or insolvent or approves as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company or any Significant Subsidiary of the Company; | |
| | | (ii) appoints a | | | (B) appoints a Custodian of the Company or any Significant Subsidiary of the Company or for all or any substantial part of the property of the Company or any Significant Subsidiary of the Company; | |
or | | ||||||
| | | (iii) orders the liquidation of | | | (C) orders the liquidation or winding up of the Company or any Significant Subsidiary of the Company and, in the case of any of subclause (A), (B) or (C) of this paragraph (7), the order or decree remains unstayed and in effect for 90 days; or | |
| | | | | (8) any other Event of Default provided with respect to Securities of that series. | | |
| | | | | | As used in Section 501 of the Realty Indenture, the term “Bankruptcy Law” means Title |
11, U.S. Code or any similar federal or state law for the relief of debtors and the term “Custodian” means any receiver, trustee, assignee, liquidator, custodian, sequestrator or other similar official under any Bankruptcy Law. | | ||||||
| | | | | | As used in the Realty Indenture, the terms “Security” and “Securities” mean, in general, any debt security or debt securities authenticated and delivered under the Realty Indenture, including, without limitation, the Realty Notes; and the term “Stated Maturity” means, when used with respect to any Security or any installment of principal thereof or interest thereon, the date specified in such Security as the fixed date on which the principal of such | |
| | | Spirit Notes | | | New Realty Notes | |
| | | | | | Security or such installment of principal or interest is due and payable. As used in Section 501 of the Realty Indenture, the term “Subsidiary” has the meaning set forth in this prospectus under the caption | |
Merger, Consolidation and Sale of Assets | | | Section | | | Section 801 of the Realty Indenture | |
| | | (a) the Company or the Guarantor, as the case may be, shall be the continuing entity, or the successor entity (if other than Company or the Guarantor, as the case may be) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets [in the case of the (b) immediately after giving effect to the transaction, no Event of Default under the Indenture, | | | The Company will not consolidate with, or sell, lease or convey all or substantially all of its assets to, or merge with or into, any Person unless (1) either the Company shall be the continuing entity, or the successor Person (if other than the |
Company) formed by or resulting from such consolidation or merger or which shall have received the transfer of such assets shall be a corporation organized and existing under the laws of the United States or any state thereof and such successor corporation shall expressly assume the due and punctual payment of the principal of (and premium, if any) and any interest (including all Additional Amounts, if any, payable pursuant to Section 1010) on all of the Securities, according to their tenor, and the due and punctual performance and observance of all of the covenants and conditions of this Indenture and the Securities to be performed or observed by the Company, by supplemental indenture, complying with Article Nine, satisfactory to the Trustee, executed and delivered to the Trustee by such corporation and (2) immediately after giving effect to such transaction and treating any indebtedness which becomes an obligation of the | |
| | | Spirit Notes | | | New Realty Notes | |
| | | (c) an Officer’s Certificate covering these conditions shall be delivered to the Trustee. In the case of any such consolidation, sale, conveyance or merger, but not a lease, in a transaction in which there is a successor entity, the successor entity will succeed to, and be substituted for, the Company or the Guarantor, as the case may be, under the Indenture and, subject to the terms of the Indenture, the Company or the Guarantor, as the case may be, will be released from their respective obligations under the Indenture. | | | Company or any Subsidiary as a result thereof as having been incurred, and any liens or other encumbrances on any property or assets of the Company or any Subsidiary that are incurred, created or assumed as a result thereof as having been created, incurred or assumed, by the Company or such Subsidiary at the time of such transaction, no Event of Default, and no event which, after notice or the lapse of time, or both, would become an Event of Default, shall have occurred and be continuing. | |
| | | | | As used in Section 801 of the Realty Indenture, the term “Subsidiary” has the meaning set forth in this prospectus under the caption |
Covenants of | |||||||
| |||||||
Provision of Financial Information | | | Section The Guarantor will also in any event (1) within 15 days of each | | | Section 1008 of the Realty Indenture Whether or not the Company is subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Company will, within 15 days after each of the respective dates by which the Company would have been required to file annual reports, quarterly reports and other documents with the Commission if the Company were so subject, (1) transmit by mail to all |
Holders, as their names and addresses appear in the Security Register, without cost to such Holders, copies of the annual reports, quarterly reports and other documents which the Company would have been required to file with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, if the Company were subject to such Sections, (2) file with the Trustee copies of the | |
| | | Spirit Notes | | | New Realty Notes | |
| | | Required Filing Date (a) transmit by mail or electronic transmittal to all Holders, as their names and addresses appear in the security register, without cost to such Holders, copies of the annual reports, quarterly reports and other documents that the Guarantor is required to file or would have been required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act if the Guarantor were subject to such sections, and (b) furnish to the Trustee copies of annual reports, quarterly reports and other documents that the Guarantor would have been required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act if the Guarantor were subject to such sections; provided that the foregoing transmittal and furnishing requirements will be deemed satisfied if the foregoing reports and documents are available on the SEC’s EDGAR system or on the Guarantor’s website within the applicable time period specified above, and (2) if filing such documents by the Guarantor with the SEC is not permitted under the Exchange Act, promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any prospective Holder. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including our compliance with any of the covenants thereunder (as to which the Trustee is entitled to rely conclusively on an Officer’s Certificate). The Trustee shall have no liability or responsibility for the | | | annual reports, quarterly reports and other documents which the Company would have been required to file with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, if the Company were subject to such Sections, and (3) promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any prospective Holder. | |
| | | | | New Realty Notes | | |
| | | filing, timeliness or content of any such report. in the case of the 2026 Notes: Whether or not we or the Guarantor is subject to Section 13 or 15(d) of the Exchange Act, the Guarantor will, to the extent permitted under the Exchange Act, file with the SEC the annual reports, quarterly reports and The Guarantor will also in any | | | | |
| | | Spirit Notes | | | New Realty Notes | |
| | | SEC’s EDGAR system or on the Guarantor’s website within the applicable time period specified above, and (2) if filing such documents by the Guarantor with the SEC is not permitted under the Exchange Act, promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any prospective Holder. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including our compliance with any of the covenants thereunder (as to which the Trustee is entitled to rely conclusively on an Officer’s Certificate). The Trustee shall have no liability or responsibility for the filing, timeliness or content of any such report. For so long as any of the Notes remain outstanding and constitute “restricted securities” under Rule 144, the Company will furnish to the Holders and prospective Holders, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. | | | | |
Series of VEREIT Notes | | | Principal Amount Outstanding | | |||
4.600% Notes due 2024 | | | | $ | 500,000,000 | | |
4.625% Notes due 2025 | | | | $ | 550,000,000 | | |
4.875% Notes due 2026 | | | | $ | 600,000,000 | | |
3.950% Notes due 2027 | | | | $ | 600,000,000 | | |
3.400% Notes due January 2028 | | | | $ | 600,000,000 | | |
2.200% Notes due June 2028 | | | | $ | 500,000,000 | | |
3.100% Notes due 2029 | | | | $ | 600,000,000 | | |
2.850% Notes due 2032 | | | | $ | 700,000,000 | | |
| | | | $ | 4,650,000,000 | | |
Series of Spirit Notes | | | Principal Amount Outstanding | | |||
4.450% Notes due 2026 | | | | $ | 300,000,000 | | |
3.200% Notes due 2027 | | | | | 300,000,000 | | |
2.100% Notes due 2028 | | | | | 450,000,000 | | |
4.000% Notes due 2029 | | | | | 400,000,000 | | |
3.400% Notes due 2030 | | | | | 500,000,000 | | |
3.200% Notes due 2031 | | | | | 450,000,000 | | |
2.700% Notes due 2032 | | | | | 350,000,000 | | |
| | | | $ | 2,750,000,000 | | |
| | | Par Call Date | | | Number of Basis Points | | |||||||
New 2026 Notes | | June 15, 2026 | | | | | | | ||||||
New 2027 Notes | | | November 15, 2026 | | | | | 25 | | | ||||
New 2028 Notes | | | January 15, 2028 | | | | | 20 | | | ||||
New 2029 Notes | | | April 15, 2029 | | | | | 30 | | | ||||
New | | | ||||||||||||
| | | | 30 | | | ||||||||
New | | | | | | | 45 | | | |||||
New | | | | | | | 25 | |||||||
| |
48 Wall Street, 22nd Floor New York, New York 10005 Bank and Brokers Call Collect: (212) 269-5550 All Others, Please Call Toll-Free: (866) 796-7184 Email: realtyincome@dfking.com |
550 South Tryon Street, 5th Floor Charlotte, NC 28202 Attention: Liability Management Group Collect: (704) 410-4759 Toll-free: (866) 309-6316 |
| Exhibit No. | | | Description | | ||
| 4.1 | | | Indenture dated as of October 28, 1998 between Realty Income Corporation and The Bank of New York Mellon Trust Company, N.A., as successor to The Bank of New York (filed as exhibit 4.1 to the registrant’s Form 8-K, filed on October 28, 1998 (FileNo.001-13374) and incorporated herein by reference). | | ||
| 4.2* | | | | |||
| 4.3 | | | | |||
| 4.4 | | | ||||
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| 4.6* | | | ||||
| 4.7* | | | | |||
| 4.8* | | | | |||
| 4.9 | | | | |||
| 4.10 | | | ||||
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| | | | ||||
| | | Consent of Latham & Watkins LLP (Included in Exhibit 5.2). | | |||
| | | | ||||
| 107* | | | |
By: /s/ Michelle Bushore Michelle Bushore Executive Vice President, Chief Legal Officer, General Counsel and Secretary |
| Signature | | | Title | | | Date | |
| /s/ Sumit Roy Sumit Roy | | | President, Chief Executive Officer and Director (Principal Executive Officer) | | | | |
| /s/ Christie B. Kelly Christie B. Kelly | | | Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer) | | | | |
| /s/ Sean P. Nugent Sean P. Nugent | | | Senior Vice President and Controller | | | | |
| /s/ | | | Director | | | ||
| ||||||||
| /s/ Jacqueline Brady Jacqueline Brady | | | Director | | | | |
| /s/ A. Larry Chapman A. Larry Chapman | | | Director | | | |
| Signature | | | Title | | | Date | |
| /s/ Reginald H. Gilyard Reginald H. Gilyard | | | Director | | | | |
| /s/ Mary Hogan Preusse Mary Hogan Preusse | | | Director | | | December 19, 2023 | |
| /s/ Priya Cherian Huskins Priya Cherian Huskins | | | Director | | | | |
| /s/ Gerardo I. Lopez Gerardo I. Lopez | | | Director | | | December 19, 2023 | |
| /s/ Michael D. McKee Michael D. McKee | | | Non-Executive Chairman | | | December 19, 2023 | |
| /s/ Gregory T. McLaughlin Gregory T. McLaughlin | | | Director | | | | |
| /s/ Ronald L. Merriman Ronald L. Merriman | | | Director | | | |