Realty Income and Apollo agreed on 19 March to form a joint venture in which Apollo-managed funds and affiliates will acquire a 49% interest in a portfolio of about 500 US single-tenant retail properties, providing Realty Income with $1.0bn of gross proceeds.
Why Apollo Funds is buying Realty Income retail net lease joint venture (49% stake)
Realty Income chief executive Sumit Roy said the venture expands access to efficient private funding, and chief financial officer Jonathan Pong said the structured equity is expected to unlock meaningful savings versus public equity. Apollo partner Jamshid Ehsani called it a landmark deal in the public REIT space.
Deal terms and financing
Realty Income retains management of the assets under a long-term agreement and holds a call option to redeem Apollo's interest after year seven and through year 15, priced to cap Apollo's internal rate of return at 6.875%. The capital is expected to receive permanent equity treatment from rating agencies.
Regulatory approvals and timing
Closing was expected on 31 March 2026, subject to final documentation and customary closing conditions.
Market context
The portfolio generates about $140m of annualised base rent with a weighted average remaining lease term of 9.1 years. The partners said the venture could serve as a framework for further co-investment.
