Realty Income to acquire properties from CIM Real Estate Finance Trust for $894m

Realty Income Corp. has signed a definitive agreement to acquire up to 185 single-tenant retail and industrial properties from subsidiaries of CIM Real Estate Finance Trust (CMFT), a non-listed REIT sponsored by an affiliate of CIM Group, for approximately $894 million in cash.

The portfolio composition may vary based upon the completion of due diligence and the potential exercise of rights of first refusal related to certain properties. The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions, approvals and completion of due diligence.

Inclusive of all 185 properties, the transaction is expected to be executed at an approximate 7.1 percent cash cap rate for the total portfolio, which has a weighted average remaining lease term of approximately 9.2 years with approximately 48 percent of total portfolio annualized contractual rent derived from investment-grade rated clients.

"We are pleased to execute our fourth p