Realty Income will acquire Spirit Realty for $9.3 billion in stock. The combined REITs will have an enterprise value of approximately $63 billion and more than 15,000 net lease properties. Realty Income executives said the deal gives the landlord access to more tenants, more economies of scale and the ability to borrow money more cheaply to expand.

The deal strengthens Realty Income’s already retail-heavy holdings, which accounted for 82.5% of annualized contractual rent as of the end of the second quarter. Convenience stores will remain the combined company’s largest tenant base, comprising 10.2% of rent as the combined portfolio stood as of June 30, compared with 11.1% for Realty Income on its own at that time. The other industries rounding out Realty Income’s pre-acquisition top 10 are grocery stores, dollar stores, home improvement, drugstores, quick-service restaurants, casual restaurants, health and fitness, automotive services and general merchandise.

The deal also will increase slightly industrial’s share among Realty Income’s property types. Industrial will represent 15.1% of annualized contractual rent for the combined portfolio as of June30, 2023, compared with 13.1% for Realty Income alone.

Realty Income has been a leading consolidator in the net lease sector. The REIT inked a deal in January to buy 185 single-tenant properties for $894 million from subsidiaries of CIM Group, and it acquired VEREIT in 2021. In December 2022, it acquired the Encore Boston Harbor Resort and Casino from Wynn Resorts in a $1.7 billion sale-leaseback, and in August 2023, Realty Income announced it would buy in to the Bellagio Las Vegas in a $950 million investment.