Realty Income to Acquire Spirit in $9.3B All-Stock Deal

Estimated read time: 2 minutes and 58 seconds

Notable Sale: Adam Malan and Deana Marcello of Colliers, just sold this Circle K in North Las Vegas, NV:

• Price: $4,700,000 @ 4.48% CAP

KEEPIN’ IT REAL

Realty Income has announced its acquisition of Spirit Realty in an all-stock transaction valued at $9.3 billion. (Read Here)

Strategic complementarity: The acquisition of Spirit Realty's assets is highly complementary to Realty Income's existing portfolio, extending their investments in industries that have proven to generate durable cash flows over economic cycles. In 2021, Realty Income also acquired VEREIT for $11 billion.

💰 THE MONEY SHOT

Unlocking growth potential: With an enterprise value of $63 billion, the acquisition of Spirit Realty by Realty Income not only reinforces Realty Income's position in the market but also positions the company for further growth opportunities.

WHERE’S WALLY

Retail giant Walmart has announced plans to invest over $9 billion in a two-year period to upgrade and modernize its stores across the United States. (Read Here)

Enhancing the shopping experience: Walmart will re-launch 117 stores in 30 states, showcasing major enhancements that represent investments of over $500 million. These upgrades will include refreshed interiors and exteriors, updated flooring, modernized restrooms, and brighter signage for easier navigation.

💰 THE MONEY SHOT

National rollout of the concept: Walmart's investments mark the national rollout of the successful "Stores of the Future" concept, which was previously tested at selected Walmart Supercenters. Positive results, such as rising same-store sales, have encouraged the company to expand these enhancements to more than 1,400 of its total 4,717 stores.

MICKEY DEEZ

McDonald's Confident in Franchisees' Ability to Withstand Rising Costs and Wage Inflation. (Read Here)

Franchise cash flow on the rise: McDonald's franchisees are experiencing increased cash flow this year, even in the midst of inflation and rising labor costs. Kempczinski credits this to strong top-line sales and the ability to minimize the impact of higher costs.

💰 THE MONEY SHOT

California's new wages law: McDonald's is preparing for the impact of California's new fast-food wages law, which will raise the minimum wage to $20 per hour. Kempczinski sees this as an opportunity for McDonald's to gain market share, as the law will affect all competitors and McDonald's is well-positioned to weather the change.

TRIPLE NET TENDIES

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NET LEASE NUGGIES

• Retail Expansion: American Freight Opens Four New Stores in Utah

• Potbelly Announces 40-Unit Agreement with Royal Restaurant Group

• Acquisition Completed: Authentic Restaurant Brands acquires Fiesta Restaurant Group, parent company of Pollo Tropical, with plans to expand the brand.

• Flick the Bean: Human Bean opens new location in Hermiston

MEME OF THE DAY