Realty Income forms $1bn joint venture with Apollo to acquire retail properties

Realty Income entered into a $1 billion joint venture with Apollo to acquire retail properties, marking a strategic shift toward private capital partnerships for growth. The transaction allows Realty Income to access flexible capital while insulating its equity from public market volatility through long-term lease structures with built-in rent escalations. Apollo provides the majority of the capital, while Realty Income acts as the operating partner, sourcing deals and managing assets to earn management fees. This partnership follows a broader trend where net-lease REITs are pivoting to private capital to fund acquisitions and optimize balance sheets amid unpredictable public equity markets. The deal validates the net-lease asset class for institutional investors seeking stable, long-duration income streams.

Counterparts (2)

Partner

Apollo

company · 2 deals

San Francisco-based AI-powered sales intelligence platform providing B2B data and sales engagement tools to over 1 million users globally. Focuses on data enrichment, lead generation, and sales automation with a community-driven approach to business intelligence.

Realty Income

company · 1 deals

Realty Income is a real estate investment trust (REIT) that invests in commercial properties, primarily retail, leased to large, stable tenants under long-term net lease agreements. They focus on generating dependable monthly income for shareholders.