Realty Income, The Monthly Dividend Company, will acquire up to 185 single-tenant retail and industrial properties from subsidiaries of CIM Real Estate Finance Trust (CMFT) in an all-cash transaction valued at around $894 million.

Leased to 55 retail clients, the collective 185 property portfolio is estimated to include up to 4.6 million square feet of non-prime retail and industrial properties.

CIM Real Estate Finance Trust anticipates investing the net proceeds from the deal in senior secured loans and other similar credit investments.

According to Realty Income, inclusive of all 185 properties, the deal is likely to be executed at a cash cap rate of around 7.1% for the complete portfolio, which has a weighted average remaining lease term of nearly 9.2 years. About 48% of the total portfolio annualized contractual rent is drawn from investment-grade rated clients, said the company.

Based on the completion of due diligence and the potential exercise of rights of first refusal related to certain properties, the portfolio composition, amounts, and percentages may vary, according to the company.

Sumit Roy — Realty Income President and CEO said: “We are pleased to execute our fourth portfolio transaction with CIM since 2019, demonstrating our continued access to high-quality portfolio opportunities at attractive risk-adjusted returns and our sustained momentum on both the forward equity and acquisition fronts.

“Upon closing, this transaction will be immediately accretive to earnings on a leverage-neutral basis and is highly complementary to our existing portfolio.”

Post-closing, CMFT’s net lease portfolio is anticipated to consist of 199 retail, office, and industrial properties totaling 6.4 million square feet.

Anticipated to complete in the first quarter of 2023, the acquisition is subject to approvals, completion of due diligence and customary closing conditions.

CIM Real Estate Finance Trust is a non-listed commercial credit-focused real estate investment trust, which is managed by affiliates of CIM Group.

Realty Income invests in free-standing, single-tenant commercial properties in the US, Spain, and the UK.

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