- Realty Income and Apollo will launch a $1B joint venture focused on US single-tenant retail assets.
- Apollo will take a 49% equity interest in a portfolio of ~500 properties managed by Realty Income.
- The deal supports Realty Income’s private capital initiative and diversifies funding sources.
- Realty Income retains long-term management and a call option to redeem Apollo’s stake after year 7.
Strategic Partnership Launch
According to PR Newswire, Realty Income and Apollo formed a joint venture backed by a $1B Apollo investment. Apollo will acquire a 49% stake in an established retail portfolio. The venture includes about 500 US single-tenant retail properties with stable, long-term net leases. Realty Income manages the assets and oversees daily operations. Through this partnership, Realty Income aims to expand its private capital platform. It also seeks to secure cost-efficient, permanent equity.
Programmatic Growth Framework
Apollo’s investment marks a major step into public REIT partnerships and sets a model for future deals. Both firms expect a scalable equity source for long-term, stabilized assets. Notably, Apollo has recently expanded its real estate platform through multiple large-scale transactions, signaling a broader push into diversified property investments. The structure also gives Realty Income balance sheet flexibility. It prices equity tranches outside public markets and treats them as permanent capital.
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Portfolio Snapshot
The joint venture’s anticipated portfolio, as of December 31, 2025, includes approximately 500 retail assets and annualized base rent of $140M. The weighted average remaining lease term is 9.1 years, with 28% of base rent backed by investment grade tenants. Top sectors represented include dollar stores, QSRs, drug stores, grocery, and health & fitness. Realty Income retains a call option to redeem Apollo’s stake at a capped 6.875% IRR between years 7 and 15 of the agreement.
What’s Next
The transaction is slated to close on March 31, 2026, pending final agreements and standard closing conditions. Realty Income will continue managing the portfolio, while the partnership provides a foundation for future large-scale joint investments in retail assets. Additional details are available in Realty Income’s latest investor presentation.
