SAN DIEGO, March 23, 2026 /PRNewswire/ -- Realty Income Corporation ((Realty Income, NYSE:O), The Monthly Dividend Company^®, today announced the successful closing of a $694 million U.S. dollar-denominated, unsecured term loan (Term Loan) due January 2036 with an affiliate of The Goldman Sachs Group, Inc. The Term Loan priced at an all-in fixed rate of 4.91%. In conjunction with the closing, Realty Income executed a cross-currency swap for a portion of the proceeds, swapping $500 million of proceeds for approximately €431 million (in addition to the related interest payments) over the term of the loan. As a result of the swap, Realty Income achieved an effective blended borrowing rate of 4.34%.

The financing is associated with a broader transaction that supports San Diego Community Power (Community Power), California's second largest Community Choice Aggregator (CCA) serving nearly 1 million customers in the San Diego region where Realty Income is headquartered. Realty Income's role is limited to the Term Loan and related swap.

Transaction Overview

San Diego Community Power has entered into a long‑term electricity supply arrangement to secure clean, cost‑effective power on a forward commodity contract. To facilitate this arrangement, Community Power utilized a well‑established municipal prepay structure that enables a public agency to issue municipal bonds and use the proceeds to prepay for electricity deliveries. The recipient of the prepayment, Aron Energy Prepay 60 LLC, an affiliate of Goldman Sachs, is lending a portion of the proceeds to Realty Income through the unsecured Term Loan.

For Community Power, the transaction supports long‑term energy procurement objectives, contributing to the achievement of its goals on behalf of residents and businesses throughout San Diego County.

"Transactions like this demonstrate how community choice aggregators like San Diego Community Power can use sophisticated, responsible financial tools to advance our climate goals without sacrificing affordability," said Karin Burns, CEO of San Diego Community Power. "It supports our long‑term clean and renewable energy strategy while keeping fiscal responsibility front and center for the communities we serve."

For Realty Income, the transaction represents a strategic addition to its capital markets toolkit, further diversifying its long-term debt funding sources at attractive all-in rates.

"We are pleased to partner with San Diego Community Power for our debut transaction to support its prepayment of commodity costs," said Jonathan Pong, Chief Financial Officer and Treasurer of Realty Income. "This transaction allows us to support our local community by providing dependable monthly income to San Diego Community Power to achieve a fixed discount for a portion of its future energy needs. Moreover, this unique source of capital represents further diversification of our sources of long-term capital, providing us with a cost of fixed-rate debt priced below that of similar tenor public unsecured debt."

Goldman Sachs & Co. LLC served as sole underwriter on the municipal bond financing.

Realty Income is not issuing municipal bonds, is not guaranteeing or otherwise obligated to make any payments on such municipal bonds and does not receive tax‑exempt financing in connection with this transaction. The Company has no exposure to electricity markets or commodity price risk. Its role is limited to the Term Loan, which is a bilateral financing arrangement with Aron Energy Prepay 60 LLC, pursuant to which Realty Income makes fixed, scheduled monthly payments over the term of the loan. The Term Loan is structured as a senior unsecured obligation of Realty Income, ranking pari passu with its other senior unsecured indebtedness.

About Realty Income

Realty Income (NYSE:O), an S&P 500 company, is real estate partner to the world's leading companies^®. Founded in 1969, we serve our clients as a full-service real estate capital provider. As of December 31, 2025, we have a portfolio of over 15,500 properties in all 50 U.S. states, the U.K., and eight other countries in Europe. We are known as "The Monthly Dividend Company^®" and have a mission to invest in people and places to deliver dependable monthly dividends that increase over time. Since our founding, we have declared 669 consecutive monthly dividends and are a member of the S&P 500 Dividend Aristocrats^® index for having increased our dividend for over 31 consecutive years.

About San Diego Community Power

San Diego Community Power is a community choice energy program that gives customers an option to run their businesses and homes on significantly higher levels of renewable power at competitive rates. It serves nearly 1 million customers in San Diego, Chula Vista, Encinitas, La Mesa, National City, Imperial Beach and the unincorporated communities of San Diego County. Learn more at SDCommunityPower.org.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this press release, the words "estimated," "anticipated," "expect," "believe," "intend," "continue," "should," "may," "likely," "plans," and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business and portfolio and are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms and partners of such funding); volatility and uncertainty in the credit and financial markets; other risks inherent in the real estate business including our clients' solvency, client defaults under leases, increased client bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments (including rights of first refusal or rights of first offer), and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which, among other things, may transfer or limit our control of the underlying investments; epidemics or pandemics; the loss of key personnel; the outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers, acquisitions, co-investment ventures, funds, joint ventures, partnerships and other arrangements; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this press release. Actual plans and results may differ materially from what is expressed or forecasted and expectations and forecasts made in the forward-looking statements may not materialize. We do not undertake any obligation to update forward-looking statements or to publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made or to reflect the occurrence of unanticipated events.

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SOURCE Realty Income Corporation

Realty Income Announces Closing of $694 Million Term Loan Due 2036