Realty Income Corporation has entered into a new joint venture with Apollo-managed funds and affiliates that will introduce a significant pool of private capital to its net-lease platform. Under the announced structure, Apollo-related vehicles intend to provide a $1 billion investment to Realty Income in order to acquire a 49% interest in a newly formed joint venture entity.
The joint venture is expected to own a diversified portfolio of single-tenant retail properties that are subject to long-term net leases. While a nearly half-interest in the venture will be held by Apollo-managed funds and affiliates, Realty Income will retain a majority stake and will continue to manage the underlying portfolio.
The retail portfolio contributed to the venture comprises approximately 500 properties. Although specific locations and tenants were not disclosed, the assets are described as single-tenant retail holdings with long-term net-lease commitments, aligning with Realty Income’s established focus in the net-lease sector.
Realty Income president and CEO Sumit Roy characterized the partnership as a structure that could serve as a template for a larger, programmatic co-investment strategy in the United States. He noted that the company’s size and scale, along with its emphasis on providing dependable monthly dividends to investors, align well with Apollo’s insurance-related capital.
The formation of this joint venture is described as a cornerstone initiative within Realty Income’s broader private capital strategy. That initiative is intended to diversify the company’s capital sources, adding institutional private capital alongside its existing access to the public equity markets.
By combining Realty Income’s net-lease operating platform with Apollo-managed capital, the joint venture is designed to support continued ownership of a large pool of single-tenant retail properties without relying solely on traditional public equity issuance. The parties did not disclose additional financial terms beyond the planned $1 billion investment and the 49% joint venture interest.
The transaction is expected to close on March 31, subject to completion of customary conditions. No further details on governance arrangements, potential future capital commitments, or portfolio expansion plans were provided in the announcement.
