Summary
Realty Income Corporation (O) has filed an 8-K report detailing the completion of a significant asset acquisition on November 1, 2006. The company, along with certain subsidiaries, acquired 144 properties for approximately $349.5 million. These properties have been immediately leased under long-term net lease agreements with Ryan's Restaurant Group, Inc. and Fire Mountain Restaurants, LLC, with Buffets Inc. providing a guarantee for these leases. This transaction represents a material expansion of Realty Income's property portfolio and its rental income base. The report also provides condensed historical financial information for Buffets Inc., the parent company of the lessees, as of their fiscal year ending June 28, 2006. Investors should note that this financial data precedes the merger of Buffets Inc. and Ryan's Restaurant Group, Inc. and that Realty Income is not responsible for updating this information. The financial highlights for Buffets Inc. indicate net sales of $44.3 million and net income of $2.7 million for the reported period.
Key Highlights
- 1Acquisition of 144 properties for approximately $349.5 million completed on November 1, 2006.
- 2Properties are subject to long-term net lease agreements with Ryan's Restaurant Group, Inc. and Fire Mountain Restaurants, LLC.
- 3Buffets Inc. has guaranteed the leases for the acquired properties.
- 4The transaction is considered a material event under SEC regulations.
- 5Condensed financial information for Buffets Inc. (prior to its merger with Ryan's) is provided, showing net sales of $44.3 million and net income of $2.7 million for FY 2006.
- 6Realty Income Corporation is not responsible for updating the provided Buffets Inc. financial data.
- 7The acquisition is expected to contribute to Realty Income's rental income stream and property portfolio diversification.