Realty Income and Blackstone Real Estate agreed to an $800 million perpetual preferred equity investment in CityCenter Las Vegas real estate assets.
Realty Income increased its 2025 investment volume guidance to over $6.0 billion.
This marks Realty Income's second investment with Blackstone Real Estate.
Investment Details
The preferred equity investment offers an initial rate of return of 7.4% to Realty Income with escalators after the fifth anniversary.
Redemption Terms
Redemption of the preferred equity investment before the first anniversary incurs a 3% premium, decreasing to 2% if redeemed before the fourth anniversary.
Future Opportunities
Realty Income retains a right of first offer on common equity interests in the real estate for a future sale by Blackstone Real Estate.
- The investment is expected to be accretive to Realty Income with a favorable yield and IRR profile.
- Realty Income's active investment pipeline for the fourth quarter is set to be fully funded through a combination of cash, free cash flow, and equity.
The partnership between Realty Income and Blackstone Real Estate demonstrates strategic growth by investing in iconic Las Vegas properties. The investment is expected to enhance Realty Income's portfolio diversification and deliver long-term value to investors.