Moody's upgraded the senior unsecured rating of Realty Income Corp. to A3 from Baa1, with a stable outlook.
The rating agency also upgraded the rating on the real estate investment trust's senior unsecured debt to A3 from Baa1, senior unsecured debt shelf to (P)A3 from (P)Baa1 and preferred stock shelf to (P)Baa1 from (P)Baa2.
The upgrade echoes the REIT's consistent track record in preserving conservative balance sheet metrics, exceptionally strong ability to secure long-term financing at low costs and a geographically diverse net-lease retail portfolio with stable operating performance throughout real estate cycles. The upgrade is also attributable to the depth and experience of Realty Income's management team.
The stable outlook mirrors the rating agency's anticipation that the REIT will keep growing in a disciplined manner without conceding its financial flexibility and leverage. It also reflects Moody's view that management will preserve a robust operating profile with high occupancy rates and strong earnings growth.