I completely missed this and haven’t seen it posted here yet so here yall go.

Report (April 2021):https://s21.q4cdn.com/421822989/files/doc_financials/2021/Press-Release-Realty-Income-To-Merge-With-VEREIT-In-All-Stock-Transaction-4.29.21.pdf


  • O will buy VER in an “all-stock transaction” and create a spinoff (This will have ALL their office space) called “Spinco”. VER shareholders will receive 0.705 a share of O.
  • Shareholders of O will have 70% of the new company (basically every 2 shares gives you 1 Spinco (new company’s name)) while VER will get 30% (So almost every 4 shares)
  • The new company will hold ALL of VER and O’s office spaces and, it’s a REIT! So it legally needs to pay 90% of its income as dividends (meaning we got another company that pays dividends (I’m assuming monthly)).

Key Takeaways:

" Realty Income Corporation (NYSE: O) (“Realty Income”), The Monthly Dividend Company®, and VEREIT, Inc. (NYSE: VER) (“VEREIT”) today announced that the two companies have entered into a definitive merger agreement by which Realty Income will acquire VEREIT in an all-stock transaction, creating a combined company with an enterprise value of approximately $50 billion " " VEREIT shareholders will receive 0.705 shares of Realty Income stock for every share of VEREIT stock they own " " Dividend stability. Realty Income is one of only three REITs in the S&P 500 Dividend Aristocrats Index® for having increased its dividend every year for the last 25 consecutive years and the improved diversification effectuated through the merger is expected to further enhance the durability of Realty Income’s dividend coverage. VEREIT’s shareholders are expected to experience an immediate increase in the dividend upon closing of the merger. Dividend payments for both companies are expected to remain uninterrupted through the close of this transaction." 

About the Spin-Off (Spinco):

Immediately following the closing, the companies expect to effectuate a taxable spin-off of substantially all of the office properties of both companies into a new, self-managed, publicly traded REIT (“SpinCo”). Following the merger and the spin-off, Realty Income will continue as the surviving public entity. Realty Income and former VEREIT shareholders are expected to own approximately 70% and 30%, respectively, of both Realty Income and SpinCo. 

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Author Of this post: /u/Dampish10
Title Of post: Ticker: O (Realty Income Corporation) Merger, Extra dividends, Spin-off Company
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