Realty Income Corporation completed a $694 million U.S. dollar‑denominated, unsecured term loan on March 23, 2026. The loan, issued by an affiliate of The Goldman Sachs Group, Inc., is part of a broader transaction that supports San Diego Community Power, a community‑choice aggregator serving nearly one million customers in the San Diego region.
The financing carries a maturity of January 2036 and an all‑in fixed rate of 4.91%. A cross‑currency swap of $500 million for approximately €431 million reduces the effective blended borrowing rate to 4.34%. The loan is fully senior unsecured and ranks pari passu with other senior unsecured debt, and it does not involve any equity issuance or changes to Realty Income’s capital structure.
The transaction diversifies Realty Income’s long‑term debt funding at attractive rates while providing San Diego Community Power with a fixed‑rate source of capital to prepay future electricity deliveries. Realty Income has no exposure to electricity markets or commodity price risk; its role is limited to the term loan with scheduled monthly payments.
Jonathan Pong, Chief Financial Officer and Treasurer of Realty Income, said, "We are pleased to partner with San Diego Community Power for our debut transaction to support its prepayment of commodity costs. 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." Sumit Roy, President and Chief Executive Officer, added, "2025 represented another year of consistent returns and deliberate execution of strategic initiatives that will amplify our competitive strengths. The momentum in our business is palpable. Our fourth quarter investment volume of $2.4 billion represents a meaningful acceleration in activity, and our active pipeline for 2026 is reflected in our initial investment volume guidance of approximately $8.0 billion. Our growth outlook is supported by an ever‑expanding global addressable market. Our unique platform now benefits from additional sources of private capital, including our U.S. Core Plus fund and GIC partnership. We are honored by the trust we have established with these investors and are energized by the opportunity to deliver reliable long‑term value for all stakeholders."
The loan is one of several recent financing moves that illustrate Realty Income’s focus on efficient capital structure and growth. In November 2025 the company issued a £900 million sterling‑denominated term loan, and in October 2025 it raised $800 million through a senior unsecured note offering. In March 2026, Realty Income announced a $1 billion joint venture with Apollo for U.S. retail assets, expected to close on March 31, 2026. These activities underscore the company’s strategy of diversifying debt sources and leveraging attractive market conditions to support its long‑term investment portfolio.
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