Realty Income and Apollo to Establish Strategic Partnership
realtyincome.com • • business
Key Points:
- Realty Income Corporation and Apollo have entered a strategic partnership where Apollo will invest $1 billion to acquire a 49% equity interest in a joint venture owning approximately 500 single-tenant retail properties in the U.S., managed by Realty Income.
- The joint venture is part of Realty Income's private capital initiative to diversify funding sources and provide a scalable, cost-efficient source of long-term equity, with permanent equity treatment by Moody's and S&P rating agencies.
- Realty Income retains the right to redeem Apollo's equity interest after seven years, with a capped internal rate of return of 6.875% for Apollo, and expects the partnership to support investment in stabilized, long-duration assets while maintaining financial flexibility.
- The portfolio includes a diversified mix of
