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**Realty Income Invests $800M in CityCenter Las Vegas Resorts**
Realty Income Corporation and Blackstone Real Estate have announced a strategic agreement in which Realty Income will invest $800 million in perpetual preferred equity in the real estate holdings of CityCenter in Las Vegas. The investment covers two iconic properties—ARIA Resort & Casino and Vdara Hotel & Spa—both owned by funds affiliated with Blackstone Real Estate.
As part of the transaction, Blackstone Real Estate will retain full ownership of the common equity, while MGM Resorts International will continue to operate both ARIA and Vdara. This deal marks the second collaboration between Realty Income and Blackstone Real Estate, following their successful joint venture at the Bellagio Las Vegas in 2023.
The perpetual preferred equity investment is expected to deliver an initial unlevered rate of return of 7.4% to Realty Income, with annual capped escalations starting five years after the closing date.
The CityCenter properties are currently under a long-term, triple-net lease with approximately 26 years remaining in the initial term and three additional 10-year renewal options. The lease includes annual rent escalations and is well-supported by the property’s existing cash flows.
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