Real estate investment trust Realty Income is buying American Realty Capital Trust Inc. for about $1.9 billion in stock, The Associated Press reports.
Realty Income Corp., which owns and manages single-tenant retail properties, said Thursday that the deal will help it increase the revenue it derives from investment-grade tenants such as FedEx, Walgreens and CVS. It will also diversify the company’s holdings outside the retail industry, as American Realty focuses on commercial properties.
The buyout will give Realty Income 501 additional properties. This will give it more than 3,250 properties owned under long-term leases to major commercial and retail tenants.
Both companies’ boards have unanimously approved the deal, which still needs approval from the companies’ shareholders. American Realty stockholders would own about 25.6 percent of Realty Income’s shares if the deal is completed.
