Realty Income dips after $750 mln convertible bond sale

Realty Income's O.N shares down 0.5% at $57.57 before the bell after it secures capital raise

Commercial real estate investment trust announces pricing private offering of $750 mln 3.5% 3-yr convertible bonds (CBs)

Initial conversion price set at $69.42, 20% above stock's last close of $57.85

Co plans to use majority of net offering proceeds for general purposes, including repayment or repurchase of indebtedness (including $500 mln outstanding of its 5.05% notes due Jan 2026, and/or borrowings under its revolving credit facilities and commercial paper programs), redevelopment and acquisition of additional properties, among other uses

It also intends to use approx $102 mln of proceeds to repurchase about 1.8 mln of its shares from purchasers of the CBs to facilitate hedging

San Diego, California-based firm has about $53 bln market cap

Through Mon, O shares up 2.6% to begin 2026. Stock gained 5.5% in 2025 vs S&P 500 Real Estate Index .SPLRCR 0.3% loss

Of 21 analysts covering O, recommendation breakdown is 5 "strong buy" or "buy", 15 "hold" and 1 "sell"; median PT $62, per latest LSEG data