Realty Income Signs Deals With Inland To Buy $503 Mln In Real Estate Assets

(RTTNews) - Realty Income Corp. (O), announced Tuesday that it has signed purchase and sale agreements with Inland Diversified Real Estate Trust, Inc. and certain subsidiaries of Inland, to acquire 84 single-tenant, 100% net-leased properties, for approximately $503 million.

Realty Income said that the acquisition will be financed with about $349 million in cash and the assumption of about $154 million of debt.

The portfolio to be acquired consists of primarily retail, industrial and distribution properties leased to 16 tenants, in 12 different industries, located in 22 states, with an initial average lease term of 13.7 years. In addition, 68% of the rental revenue is generated by investment grade tenants.

The transaction is expected to close during the first quarter of 2014. However, the acquisition of these properties is subject to certain closing conditions, and it is possible that the company will not acquire some or all of these properties, or that the timing of the closing will be delayed.

Separately, Inland Diversified Real Estate Trust, confirmed that it has entered into definitive sale agreements with Realty Income to sell 84 single tenant, net-leased properties for about $503 million, or approximately $223 million net of debt and closing costs.

The transaction is expected to close in several tranches during the first quarter 2014, with the first closing expected in January 2014. Inland Diversified presently plans to make distributions to its stockholders of the net proceeds following each of the closings.