Realty Income Corp Makes $800M Preferred Equity Investment in CityCenter Las Vegas Real Estate

LAS VEGAS, Dec. 1, 2025 — Realty Income Corp (NYSE: O) announced it will make an $800 million perpetual preferred equity investment in the real estate of CityCenter Las Vegas, which includes the ARIA Resort & Casino and Vdara Hotel & Spa. The transaction, announced jointly with Blackstone Real Estate, marks Realty Income’s second collaboration with Blackstone following their 2023 Bellagio Las Vegas joint venture.

Details of the Investment

Under the agreement, Realty Income’s preferred equity investment will carry an initial unlevered rate of return of 7.4%, with capped annual escalators beginning on the fifth anniversary of closing. Blackstone Real Estate will retain 100% of the common equity ownership, while MGM Resorts International will continue to operate the properties. Realty Income will also hold a right of first offer on any future sale of the common equity interests in the real estate.

The preferred equity structure includes early redemption premiums of 3% if redeemed within the first year and 2% if redeemed between the first and fourth years. A make-whole provision ensures Realty Income achieves an 8.325% unlevered internal rate of return on any redeemed amount.

Financial Outlook

In conjunction with the announcement, Realty Income raised its 2025 investment volume guidance to more than $6 billion. The company stated that the investment is fully funded through a combination of cash, anticipated free cash flow, and unsettled forward equity. As of the end of the third quarter, Realty Income reported approximately $417 million in cash and $1.3 billion of unsettled forward equity.

“We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip’s iconic properties,” said Sumit Roy, Realty Income’s president and chief executive officer. “This represents an immediately accretive investment for Realty Income with a favorable initial yield and IRR profile.”

Advisors

J.P. Morgan, Citi, Deutsche Bank, Goldman Sachs, and Evercore are serving as capital markets brokers on the transaction.

CityCenter Las Vegas, located on the Las Vegas Strip, comprises approximately 5,500 rooms and 500,000 square feet of convention space, along with retail and dining venues. The properties will continue to be operated by MGM Resorts International.

Sources: Realty Income Corp Press Release