Realty Income Corp. has agreed to acquire Spirit Realty Capital in a deal valued at about $9.3B, according to the companies. Under the terms of the all-stock deal, Spirit shareholders will receive 0.762 newly issued Realty Income common shares for each Spirit common share they own.

The companies estimate that the combined enterprise value of the new entity will be $63B once the deal closes in the first quarter. No outside financing will be used to facilitate the acquisition.

Some of Realty Income's tenants, largely under net lease agreements, include Walgreens, 7-Eleven, Speedway, Circle K, Dollar General and Dollar Tree/Family Dollar.

Realty Income's portfolio includes over 13,100 properties owned under long-term net lease agreements with various tenants. Spirit's portfolio likewise consists largely of single-tenant assets, though it is a smaller operation, with more than 2,000 retail and industrial properties.

The companies estimate that the combined portfolio's annualized rent will grow from $3.8B to $4.5B. The combined entity will continue to be a major landlord for convenience stores, representing more than 10% of its annualized rent. Industrial properties will represent more than 15% of its annualized rent.

In 2021, the company acquired VEREIT, adding about 3,800 commercial properties totaling 89.5M SF to its portfolio.

“Spirit's assets are highly complementary to our existing portfolio, extending our investments in industries that have proven to generate durable cash flows over several economic cycles,” Realty Income CEO Sumit Roy said in a statement.

Early this year, Realty Income formed an alliance with indoor vertical farming specialist Plenty to acquire and develop sites to be leased back to Plenty.