2 hours ago
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Matt DiLallo, The Motley Fool
Sat, March 21, 2026 astatine 1:28 PM CDT 4 min read
Realty Income (NYSE: O) has go the existent property spouse to the world's starring companies. The existent property concern spot (REIT) has traditionally done truthful by forming win-win partnerships with companies that ain existent estate, acquiring their properties done sale-leaseback transactions. The institution has besides formed respective strategical concern partnerships successful caller years.
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Realty Income is forming a caller JV with Apollo-managed funds. The alternative investment manager volition supply $1 cardinal to Realty Income to get a 49% involvement successful a diversified portfolio of single-tenant retail properties secured by semipermanent nett leases. The portfolio volition supply the Apollo-managed funds with stable, contractual currency flows. Realty Income volition negociate the portfolio nether a semipermanent absorption agreement. The archetypal 500-property portfolio has a weighted-average lease word of 9.1 years and yearly lease escalators of astir 1%. The portfolio features a premix of tenants, including dollar stores (9.9% of rent), quick-service restaurants (8.3%), cause stores (7.9%), market stores (7.7%), and wellness and fittingness properties (7.5%).
The archetypal $1 cardinal concern by Apollo is apt lone the opening arsenic Apollo anticipates making follow-on investments with Realty Income. The companies expect to terms aboriginal investments based connected semipermanent involvement rates, not equity marketplace conditions. As a result, this concern should supply Realty Income with a unchangeable root of non-dilutive, attractively priced equity capital. The woody tin besides service arsenic a template for aboriginal partnerships with different fiscal firms seeking to put successful existent estate.
The Apollo JV is Realty Income's 2nd strategical concern concern this year. The REIT formed a much than $1.5 cardinal JV with GIC (Singapore's sovereign wealthiness fund) to put successful build-to-suit logistics existent property improvement projects. Additionally, Realty Income expanded into Mexico by agreeing to bargain $200 cardinal of build-to-suit concern properties from GIC upon their completion. GIC besides became a cornerstone capitalist successful the REIT's U.S. Core Plus fund.
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