SRC - The Real Reason Realty Income Isn't Too Worried About Spirit Realty's Debt in Its New Merger
2023-11-16 09:08:00 ET
There's an often overlooked aspect to acquisitions when it comes to the balance sheet: Buying an entire company means buying both its assets and the liabilities that come along with them.
When you look at Realty Income 's (NYSE: O) $9.3 billion agreement to purchase Spirit Realty Capital (NYSE: SRC) , it also comes with $4.1 billion of debt. Here's why Realty Income couldn't be happier.
Real estate investment trusts (REITs) generally sell equity and issue debt to fund growth transactions. With rates heading higher of late, selling debt has become much more expensive. That makes it harder to justify property acquisitions.
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The Real Reason Realty Income Isn't Too Worried About Spirit Realty's Debt in Its New Merger