Notes Payable (Tables) - Notes and bonds payable

3 Months Ended

Mar. 31, 2023

Debt

Schedule of unsecured notes and bonds

Our senior unsecured notes and bonds are USD-denominated and Sterling-denominated. Foreign denominated notes are converted at the applicable exchange rate on the balance sheet date. The following are sorted by maturity date (in millions):

	Principal Amount (Currency Denomination)		Carrying Value (USD) as of
			March 31, 2023		December 31, 2022
4.600% notes, $500 issued February 2014, of which $485 was exchanged in November 2021, both due in February 2024 (1)	$	500	$	500	$	500
3.875% notes, issued in June 2014 and due in July 2024	$	350	350		350
3.875% notes, issued in April 2018 and due in April 2025	$	500	500		500
4.625% notes, $550 issued October 2018, of which $544 was exchanged in November 2021, both due in November 2025 (1)	$	550	550		550
5.050% notes, issued in January 2023 and due in January 2026	$	500	500		—
0.750% notes, issued December 2020 and due in March 2026	$	325	325		325
4.875% notes, $600 issued June 2016, of which $596 was exchanged in November 2021, both due in June 2026 (1)	$	600	600		600
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026	$	650	650		650
1.875% notes, issued in January 2022 and due in January 2027	£	250	309		301
3.000% notes, issued in October 2016 and due in January 2027	$	600	600		600
1.125% notes, issued in July 2021 and due in July 2027	£	400	495		482
3.950% notes, $600 issued August 2017, of which $594 was exchanged in November 2021, both due in August 2027 (1)	$	600	600		600
3.650% notes, issued in December 2017 and due in January 2028	$	550	550		550
3.400% notes, $600 issued June 2020, of which $598 was exchanged in November 2021, both due in January 2028 (1)	$	600	600		600
2.200% notes, $500 issued November 2020, of which $497 was exchanged in November 2021, both due in June 2028 (1)	$	500	500		500
3.250% notes, issued in June 2019 and due in June 2029	$	500	500		500
3.100% notes, $600 issued December 2019, of which $596 was exchanged in November 2021, both due in December 2029 (1)(2)	$	599	599		599
4.850% notes, issued in January 2023 and due in March 2030	$	600	600		—
3.160% notes, issued in June 2022 and due in June 2030	£	140	173		169
1.625% notes, issued in October 2020 and due December 2030	£	400	495		482
3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031	$	950	950		950
3.180% notes, issued in June 2022 and due in June 2032	£	345	427		416
5.625% notes, issued in October 2022 and due in October 2032	$	750	750		750
2.850% notes, $700 issued November 2020, of which $699 was exchanged in November 2021, both due in December 2032 (1)	$	700	700		700
1.800% notes, issued in December 2020 and due in March 2033	$	400	400		400
1.750% notes, issued in July 2021 and due in July 2033	£	350	433		422
2.730% notes, issued in May 2019 and due in May 2034	£	315	390		379
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035	$	250	250		250
3.390% notes, issued in June 2022 and due in June 2037	£	115	142		138
2.500% notes, issued in January 2022 and due in January 2042	£	250	309		301
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047	$	550	550		550
Total principal amount			$	15,297	$	14,114
Unamortized net premiums, deferred financing costs and basis adjustment on interest rate swaps designated as fair value hedge (3)			133		164
			$	15,430	$	14,278

(1) Carrying Value (USD) includes the portion of the VEREIT OP notes that remained outstanding, totaling $39.1 million in the aggregate at March 31, 2023 and December 31, 2022, that were not exchanged in the exchange offers commenced by us with respect to the outstanding bonds of VEREIT OP in connection with the consummation of the merger with VEREIT (the "Exchange Offers").

(2) These notes were originally issued by VEREIT OP in December of 2019 for the principal amount of $600 million. The amount of Realty Income debt issued through the Exchange Offers was $599 million, resulting from cancellations due to late tenders that forfeited the early participation premium of $30 per $1,000 principal amount and cash paid in lieu of fractional shares.

(3) In January 2023, we entered into three-year, fixed-to-variable interest rate swaps, which are accounted for as fair value hedges. See Note 10, Financial Instruments and Fair Value Measurements, for further details.

Schedule of maturity of debt, net

The following table summarizes the maturity of our notes and bonds payable as of March 31, 2023, excluding $133.3 million related to unamortized net premiums, deferred financing costs, and basis adjustment on interest rate swaps designated as fair value hedge (dollars in millions):

Year of Maturity	Principal
2024	$	850
2025	1,050
2026	2,075
2027	2,004
Thereafter	9,318
Totals	$	15,297

Schedule of note issuances

During the three months ended March 31, 2023, and 2022, we issued the following notes and bonds (in millions):

First Quarter 2023 Issuances	Date of Issuance	Maturity Date	Principal amount used		Price of par value		Effective semi-annual yield to maturity
5.050% Notes	January 2023	January 2026	$	500.0	99.618	%	5.189	%
4.850% Notes	January 2023	March 2030	$	600.0	98.813	%	5.047	%

First Quarter 2022 Issuances	Date of Issuance	Maturity Date	Principal amount used		Price of par value		Effective semi-annual yield to maturity
1.875% Notes	January 2022	January 2027	£	250.0	99.487	%	1.974	%
2.500% Notes	January 2022	January 2042	£	250.0	98.445	%	2.584	%