Apollo to Invest $1B in Realty Income Assets

Apollo will pay $1 billion to acquire a 49 percent stake in a new joint venture with Realty Income Corp. The partnership will own a 500-asset portfolio of single-tenant retail properties across the U.S.

Realty Income will manage the portfolio under a long-term agreement. The transaction is expected to close on March 31.

Properties in the portfolio have a weighted average remaining lease term of 9.1 years and an annualized base rent of $140 million. Investment-grade tenants account for 28.3 percent of the portfolio’s base rent.

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The top five industries in the portfolio include:

• dollar stores: 9.9 percent
• quick service restaurants: 8.3 percent
• drug stores: 7.9 percent
• grocery: 7.7 percent
• health and fitness: 7.5 percent

The deal provides Realty Income with the option to buy back Apollo’s equity between seven and 15 years following the deal’s close. Apollo is targeting an annual return of nearly 6.9 percent.

Goldman Sachs acted as Realty Income’s financial advisor and structuring agent, while Wells Fargo Securities advised Apollo.

Investors returning to single-tenant retail

U.S. single-tenant net-lease retail transactions rose by 18 percent year-over-year for the first three quarters of 2025, according to a Marcus & Millichap report.

The dollar volume for such investments was also up over the year, by 14 percent. While the total was a 15 percent decrease in dollar volume since 2021, it was still higher than for any year prior to that point, in line with broader retail trends.

Private investors accounted for 71 percent of transactions, far surpassing other buyer categories. Foreign buyers ranked second with 10 percent, followed by REITs (9 percent), institutional investors (6 percent) and cross-border investors (4 percent).