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Realty Income To Merge With VEREIT® In All - Stock Transaction 04.29.2021 SAN DIEGO and PHOENIX , April 29 , 2021 / PRNewswire / -- 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 . Under the terms of the agreement , VEREIT shareholders will receive 0.705 shares of Realty Income stock for every share of VEREIT stock they own . REALTY INCOME The Monthly Dividend Company® 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 . The transactions are expected to be over 10 % accretive to Realty Income's AFFO per share in year one , add meaningful diversification that further enables new growth avenues , strengthen cash flow durability , and provide significant financial synergies , particularly through accretive debt refinancing opportunities . Realty Income's growth strategy will remain focused primarily on high - quality , single - tenant net lease retail and industrial properties in the U.S. and U.K. , leased to clients that are leaders in their respective businesses . " We believe the merger with VEREIT will generate immediate earnings accretion and value creation for Realty Income's shareholders while enhancing our ability to execute on our ambitious growth initiatives , " said Sumit Roy , President and Chief Executive Officer of Realty Income . " Together , our company will enjoy increased size , scale , and diversification , continuing to distance Realty Income as the leader in the net lease industry . VEREIT's real estate portfolio is highly complementary to ours , which we expect to further enhance the consistency and durability of our cash flows . " " The objective of our management team from initiation in 2015 was to revitalize VEREIT and increase the value of the enterprise , " said Glenn Rufrano , Chief Executive Officer of VEREIT . " We put an excellent team in place , enhanced the portfolio , created an investment - grade balance sheet and resolved all legacy issues . The board and management have concluded that a merger with Realty Income , the premier net lease company , will enable us to recognize the value created . The combined company provides all of our constituencies the opportunity to benefit from the advantageous cost of capital and growth potential generated by this transaction . " Strategic and Financial Rationale • Immediate AFFO per share accretion . Relative to the $ 3.465 midpoint of Realty Income's 2021 AFFO per share guidance , the transaction is expected to be over 10 % accretive to shareholders on an annualized , leverage - neutral basis . • Increased and diversified scale driving growth . The complementary nature of each company's real estate portfolio results in greater diversification of client credit , industry , and geography , providing further runway for Realty Income to grow in its chosen verticals with best - in - class clients without compromising prudent concentration metrics . • Enhanced leadership amongst blue chip benchmarks . Upon closing of the merger , Realty Income is expected to become one of the six largest REITs in the MSCI US REIT