Summary
Realty Income Corporation (O) announced on September 19, 2005, that it has entered into a definitive agreement to acquire 17 Kerasotes Showplace-branded theater properties for approximately $200 million. This strategic acquisition is expected to close later in September, subject to customary conditions. These 17 properties are all subject to 20-year, triple-net lease agreements, indicating a stable, long-term income stream for Realty Income. The theaters are described as seasoned, state-of-the-art, stadium-seating facilities, averaging 45,000 leasable square feet, 10 acres of land, 12.5 screens, and a building age of seven years. The acquisition expands Realty Income's portfolio into Illinois, Indiana, Minnesota, and Missouri.
Key Highlights
- 1Realty Income Corp entered into a definitive agreement to acquire 17 Kerasotes Showplace theater properties.
- 2The total acquisition cost is approximately $200 million.
- 3The transaction is expected to close later in September 2005.
- 4Each property will be acquired subject to a 20-year, triple-net lease agreement.
- 5The acquired theaters are described as modern, stadium-seating facilities with an average of 12.5 screens.
- 6The properties are located across Illinois, Indiana, Minnesota, and Missouri.
- 7The average leasable square footage per theater is approximately 45,000 sq ft on an average lot size of 10 acres.