Realty Income invests $800M in 2 Las Vegas resorts

Core Insights - Realty Income has signed a definitive agreement for an $800 million perpetual preferred equity investment in Las Vegas' CityCenter complex, which includes Aria Resort & Casino and Vdara Hotel & Spa [8] - The investment marks Realty Income's second collaboration with Blackstone Real Estate, following a previous $950 million investment in the Bellagio Las Vegas [4][8] - The deal is expected to close on December 9, and Realty Income will retain a right of first offer on future sales of common equity interests in the CityCenter real estate by Blackstone [6] Financial Implications - The investment is anticipated to provide Realty Income investors with a favorable initial yield and internal rate of return (IRR) profile, according to CEO Sumit Roy [3] - The deal will also return significant capital to Blackstone investors while maintaining their ownership stake in a high-value resort [3] Market Context - The CityCenter deal allows Realty Income to access another iconic property on the Las Vegas Strip, enhancing its portfolio in a market with increasing demand [5] - MGM Resorts has reported steep declines in revenue per available room (RevPAR) in Q3 2025, indicating challenges in the Las Vegas market [6]