This article first appeared on GuruFocus.

Realty Income (NYSE:O) is taking a proactive step on its balance sheet, closing a 900M unsecured term loan roughly $1.18 billion to get ahead of a major refinancing coming up in early 2026. The company said the new loan will be used to pay down sterling borrowings on its $4.0 billion multi-currency revolving credit facility, essentially giving it a head start on refinancing a January 2026 term loan that includes a 705 million portion.

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CFO and Treasurer Jonathan Pong said the move gives Realty Income more room to maneuver internationally, noting that the new financing carries a lower all-in fixed rate and adds some welcome flexibility abroad. The loan matures in January 2028, with the option to extend it by an additional year if needed.

Because of its A3/A- credit ratings, Realty Income will borrow at 80 basis points over the SONIA benchmark rate. The company also locked in two-year variable-to-fixed swaps at closing, fixing the weighted-average annual rate increase at 4.3% during the initial term.

For investors, the message is familiar: Realty Income continues to stay ahead of its maturities and protect its balance sheet long before any deadlines approach.