Realty Income Acquires 89 Pizza Hut Properties from NPC International for $59 Million

Realty Income Corporation, the largest publicly traded retail REIT in the U.S., has entered into an agreement to acquire a portfolio of 89 Pizza Hut properties from NPC International, Inc. for $59 million. The properties are situated on average 37,000 square feet and have an average purchase price of approximately $663,000 each. The acquisition is expected to hold approximately $58 million in Realty Income's core portfolio as long-term investments.

The properties acquired by Realty Income represent prime retail locations within the Pizza Hut retail system, with strong unit-level cash flow rent coverages. The Company has previously acquired properties from NPC International and has proven to be excellent additions to their portfolio in terms of both profitability and contribution to cash flow. Realty Income plans to hold these properties as long-term investments, supporting the payment of monthly dividends.

Key Takeaways:

• Realty Income acquires a portfolio of 89 Pizza Hut properties from NPC International for $59 million, marking the Company's third transaction with the largest Pizza Hut franchisee.
• The properties have an average lot size of approximately 37,000 square feet and an average purchase price of approximately $663,000 each.
• The acquisition is expected to hold approximately $58 million in Realty Income's core portfolio as long-term investments.
• The Company has previously acquired properties from NPC International, demonstrating strong unit-level cash flow rent coverages.
• Realty Income believes the properties will generate significant cash flow, supporting the payment of monthly dividends.
• The Company will announce its blended lease rate and lease terms on a cumulative basis in the quarterly press release on operations.
• Realty Income has a history of acquiring net-leased retail properties nationwide and has declared 434 consecutive monthly dividend payments throughout its 37-year operating history.

Statistics:

• 89 Pizza Hut properties acquired for $59 million.
• Average lot size of approximately 37,000 square feet.
• Average purchase price of approximately $663,000 each.
• $58 million held in Realty Income's core portfolio as long-term investments.
• 434 consecutive monthly dividend payments declared throughout Realty Income's 37-year operating history.
• Approximately 1,700 retail properties owned under long-term lease agreements with leading regional and national retail chains.

Sources:

• Realty Income Corporation press release dated [no date provided] via http://www.realtyincome.com/Investing/News.html
• NPC International company information via [no date provided]
• Securities and Exchange Commission filings by Realty Income Corporation [no specific date or filing cited]