Curating Best-in-Class Portfolio
Benefits of Size and Scale
Capacity to Buy in Bulk at “Wholesale" Prices While
Maintaining Diversification
LARGER SIZE PROVIDES GROWTH OPTIONALITY
TRANSACTION SIZE & IMPACT(1)
TO RENT CONCENTRATION
REALTY INCOME
$1.7B
Sale-leaseback
transaction at ~5.9%
cap rate
3.1M
Square Feet
30Y
SCALE AND SIZE BENEFITS ILLUSTRATED
Encore Boston Harbor Transaction (Dec 2022)
The Encore Boston Harbor is a LEED Platinum certified, premium
super-regional resort and casino providing five-star dining,
gaming, shopping and entertainment
• The property is uniquely positioned as the only integrated resort
and casino located in the Boston metropolitan area
Additionally, Encore holds one of only three Class I gaming
licenses available in Massachusetts
5.6 million gaming age residents live within a 90-minute drive of
the property
TOTAL
ABR
$100
$200
$300 $400
$500 $1,000
$200
3%
5%
8%
10%
12%
22%
$400
1%
3%
4%
5%
6%
12%
$600
1%
2%
3%
4%
4%
8%
Peers with smaller
denominators lack
ability to buy in bulk
without incurring
$800
material
1%
1%
2%
3%
3%
6%
diversification risk
Lease Term
$1,000
1%
1%
2%
2%
3%
5%
$2,000
<1%
<1%
<1%
<2%
<2%
3%
<3.0%
Realty Income's Annual
$3,000
<1%
<1%
<1%
<1%
<1%
2%
Revenue
$3,400
<1%
<1%
<1%
<1%
<1%
2%
Increased scale post merger allows Realty Income
to pursue even larger sale-leaseback transactions
without compromising prudent client and industry
diversification metrics
(1) Assumes 5.5% cap rate | in millions.
Rent Increase Terms
Years 1 - 10
Annual 1.75% increase
Years 11 30
Greater of 1.75% or CPI*
*CPI increase capped at 2.50%
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