Realty Income to Acquire 112 Circle K Convenience Stores for $100.5 Million

ESCONDIDO, CA - BUSINESS WIRE - March 16, 2004

Realty Income Corp. (NYSE:O) announced today that it has signed a definitive agreement to acquire 112 Circle K-branded convenience stores, under long-term, net-lease agreements, from Alimentation Couche-Tard Inc. (Toronto:ATDb.TO), for approximately $100.5 million. It is anticipated that the transaction will close shortly.

Realty Income will acquire the 112 properties under 15 to 17-year, triple-net lease agreements. The stores have, on average, approximately 2,780 leasable square feet and are situated on an average lot size of 1.0 acre. Each location has, on average, 3.4 multi-pump gasoline dispensers and the stores within the acquired property portfolio are seasoned units with an average operating history of 16 years. The average purchase price for each property will be approximately $897,000. The 112 properties are located in 9 states including 41 properties in Florida (primarily Tampa, Orlando, Fort Myers and Naples MSA), 38 in Arizona (primarily Phoenix and Tucson MSA), 8 each in South Carolina and Louisiana, 7 in North Carolina, 3 each in Alabama and Mississippi, and 2 each in Georgia and New Mexico.

The company further disclosed that it plans to hold approximately $92.3 million of the properties in its core portfolio as long-term investments and will place approximately $8.2 million of the properties in its Crest Net Lease Inc. subsidiary for future sale. After the sale of the Crest Net Lease properties, the company anticipates that Alimentation Couche-Tard will generate approximately 4.84% of its annual revenue.

Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry and the 4th largest convenience store operator in North America. The company is based in Laval, Quebec, Canada and operates a network of approximately 4,800 stores, of which approximately 2,700 are located in the United States. The company acquired Circle K, including 2,290 U.S. stores, from Conoco Phillips (NYSE:COP) on December 17, 2003. Sphere: Related Content