Overview
- Realty Income agreed to a perpetual preferred equity stake in ARIA Resort & Casino and Vdara Hotel & Spa, with MGM continuing to operate the properties under a triple-net lease.
- Blackstone retains 100% of the common equity, while Realty Income receives a right of first offer on any future sale of Blackstone’s common interests.
- The investment carries an initial unlevered return of 7.4%, with annual capped escalators beginning on the fifth anniversary.
- Protections include an early-redemption premium before year four and a make-whole provision targeting an 8.32% unlevered return if redeemed without meeting that hurdle.
- The transaction is slated to close on December 9, 2025, subject to customary conditions, as Realty Income lifts its 2025 investment guidance above $6 billion and extends its Las Vegas partnership with Blackstone after 2023’s Bellagio deal.