Realty Income Corp. has plans to make an $800 million perpetual preferred equity investment in the real estate of CityCenter, composed of the ARIA Resort & Casino and Vdara Hotel & Spa, which is owned by funds affiliated with Blackstone Real Estate. Blackstone Real Estate will retain 100 percent of the common equity ownership of the property, which will continue to be operated by MGM Resorts International. This represents Realty Income’s second investment with Blackstone Real Estate, following the successful Bellagio Las Vegas joint venture completed in 2023.
In conjunction with today’s announcement, Realty Income is increasing its 2025 investment volume outlook to more than $6.0 billion.
The perpetual preferred equity investment is expected to carry an initial unlevered rate of return to Realty Income of 7.4 percent with annual, capped escalators starting on the fifth anniversary of the closing. The preferred equity investment is subject to an early redemp
