#United States #REIT #Realty Income #Apollo #San Diego, New York

Realty Income Partners with Apollo to Enhance Investment Opportunities in Retail Assets

In a landmark announcement, Realty Income Corporation, commonly known as The Monthly Dividend Company®, has revealed a strategic partnership with Apollo, a leading global alternative asset manager. This collaboration marks an essential milestone in the realm of Real Estate Investment Trusts (REITs), positioning both firms for significant growth within the retail assets sector.

Investment Overview

On March 19, 2026, Realty Income disclosed that Apollo-managed funds are set to inject an impressive $1.0 billion into the firm. This investment will grant Apollo a 49% stake in a newly formed joint venture focused on a diversified portfolio of single-tenant retail properties, which are backed by long-term net leases. Realty Income will retain management over this portfolio, which encompasses approximately 500 retail locations characterized by stable cash flows that help mitigate risks associated with market volatility.

President and CEO Sumit Roy expressed his enthusiasm for the partnership, noting, "We are pleased to announce Apollo's targeted equity investment in a highly diversified, income-producing portfolio. This partnership is poised to serve as a template for multi-billion-dollar co-investing relationships in the U.S. The goal is to leverage Apollo's substantial capital and our established presence in the market to provide reliable monthly dividends to our investors."

Strategic Synergy

The joint venture is set to become a cornerstone of Realty Income's private capital initiative, a strategy aimed at diversifying its sources of funding while complementing access to the public equity markets. This partnership will not only unlock new opportunities for investment but will also lessen the long-term costs associated with public equity capital, thereby fortifying Realty Income’s balance sheet and overall financial flexibility.

Apollo's role in this venture is highlighted by comments from partner Jamshid Ehsani, who stated, "This transaction signifies a pivotal moment in the public REIT space. Our collaboration harnesses Apollo's long-term capital alongside Realty Income's robust and diversified portfolio, setting a stage for a sustainable partnership aligned for long-term growth and repeatable capital deployment."

As indicated by CFO Jonathan Pong, this structured equity funding arrangement is expected to realize significant savings in comparison to the conventional costs associated with public equity capital. It will also offer a stable matrix for pricing that is independent of public market fluctuations. The financial architecture allows for a unique approach where the future tranches of capital can be adjusted in line with long-term interest rates.

Portfolio Highlights

The anticipated portfolio managed by Realty Income will feature:

• - Approximately 500 retail properties
• - An annualized base rent of $140 million
• - A weighted average lease term of 9.1 years
• - An investment-grade exposure of around 28% from the total portfolio's base rent
• - A compound annual growth rate projected at 1.0%

The top five industries within the portfolio include sector leaders such as Dollar Stores, Quick Service Restaurants, Drug Stores, Grocery, and Health & Fitness, indicating a well-rounded and resilient investment strategy.

Future Outlook

This joint venture is anticipated to finalize by March 31, 2026, contingent upon the completion of necessary documentation and customary closing conditions. The collaboration is structured so that Realty Income can exercise a call option to buy back Apollo's equity stake after seven years, ensuring a potentially favorable return for the partners involved.

In summary, this partnership signals a robust pathway toward enhancing both Realty Income's retail asset portfolio and Apollo's investment capabilities within the REIT arena. As the firms embark on this new chapter, stakeholders can anticipate innovative capital solutions and steadfast growth prospects poised to benefit all parties involved.

For further details, visit Realty Income's investor page at www.realtyincome.com/investors/investor-presentation.

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About Realty Income: Realty Income Corporation, traded on the NYSE as O, specializes in net lease agreements with commercial entities. Founded in 1969, the company has cultivated a reputation for reliability, with a portfolio exceeding 15,500 properties across multiple states and countries, committed to delivering consistent monthly dividends.

About Apollo: Apollo is a reputed global asset manager that provides innovative solutions across a wide range of financial markets. With a history spanning over thirty years, Apollo helps clients achieve their financial objectives through diversified investments and creative capital solutions.