R
ealty Income Corp (NYSE: O) and Blackstone Real Estate announced a definitive agreement in which Realty Income will invest $800 million in perpetual preferred equity in CityCenter, comprising the ARIA Resort & Casino and Vdara Hotel & Spa. Blackstone retains 100 % of the common equity, while MGM Resorts International continues to operate the property. This is Realty Income’s second partnership with Blackstone, following the 2023 Bellagio joint venture.
The transaction raises Realty Income’s 2025 investment volume outlook to over $6 billion. The preferred equity offers an initial unlevered return of 7.4 %, with capped escalators beginning on the fifth anniversary. Early redemption premiums are 3 % if redeemed before the first anniversary and 2 % if redeemed between the first and fourth anniversaries. A make‑whole payment guarantees an 8.325 % unlevered IRR upon redemption. Realty Income also receives a right of first offer on any future sale of Blackstone’s common equity interests.
CEO Sumit Roy said the deal is immediately accretive, providing a favorable yield and IRR that highlights Realty Income’s scale and diversification. He noted the company’s fully funded fourth‑quarter pipeline, backed by $417 million in cash and $1.3 billion in unsettled forward equity.
Jacob Werner, Co‑Head of Americas Acquisitions for Blackstone Real Estate, emphasized the partnership’s growth and the investment’s value to investors while preserving ownership of the Las Vegas Strip resort.
CityCenter operates under a triple‑net lease with 26 years remaining and three 10‑year extensions. The ARIA Resort & Casino and Vdara Hotel & Spa feature gaming, 5,500 rooms, 500,000 sq ft of convention space, luxury retail, and dining, all managed by MGM Resorts International.
The transaction is expected to close on December 9, 2025, subject to customary conditions. Financial advisors for Blackstone include J.P. Morgan, Citi, Deutsche Bank, Goldman Sachs, and Evercore; legal counsel is Simpson Thacher & Bartlett. Realty Income’s legal counsel is Latham & Watkins.
**About Realty Income**
Founded in 1969, the S&P 500 company manages over 15,500 properties across the U.S., U.K., and seven EU countries. Known as “The Monthly Dividend Company®,” it has issued 665 consecutive monthly dividends and is a Dividend Aristocrat.
**About Blackstone Real Estate**
Founded in 1991, Blackstone’s real‑estate arm manages $320 billion of capital, owning and operating assets worldwide across logistics, data centers, residential, office, and hospitality. Its Core+ business invests in stabilized assets, and it operates a leading global real‑estate debt platform.
**Forward‑looking statements**
This release contains forward‑looking statements subject to risks and uncertainties. Actual results may differ materially from those expressed. No obligation to update these statements.
