Realty Income Corp has agreed a deal with Blackstone Real Estate to invest $800 million in CityCenter Las Vegas.

CityCenter is comprised of the ARIA Resort & Casino and Vdara Hotel & Spa, which is owned by funds affiliated with Blackstone Real Estate.

Realty Income will make an $800 million perpetual preferred equity investment in the real estate of CityCenter under a definitive agreement announced on Monday, with the agreement marking the second deal between the company and Blackstone following the Bellagio Las Vegas joint venture in 2023.

Blackstone Real Estate will retain 100 per cent of the common equity ownership of the property, which will continue to be operated by MGM Resorts International.

“We are pleased to build on our strategic relationship with Blackstone Real Estate to invest in one of the Las Vegas Strip’s iconic properties,” said Sumit Roy, Realty Income’s president and chief executive officer. “This represents an immediately accretive investment for Realty Income with a favorable initial yield and IRR profile, further demonstrating the value of our size, scale, and diversification.”

The perpetual preferred equity investment is expected to carry an initial unlevered rate of return to Realty Income of 7.4 per cent with annual, capped escalators starting on the fifth anniversary of the closing.

Jacob Werner, co-head of Americas acquisitions at Blackstone Real Estate, said: “We are pleased to reach this agreement and grow our partnership with Realty Income. This preferred equity investment is a terrific outcome for our investors as it returns significant capital while preserving our ownership in a world-class resort at the heart of the Las Vegas Strip.”

The CityCenter property is subject to an existing triple net lease with annual rent escalators and approximately 26 years of remaining initial term, plus three 10-year extension options.

The transaction is expected to close on December 9, 2025, subject to customary closing conditions.

Shares in Realty Income Corporation (NYSE:O) closed 0.31 per cent lower at $57.43 per share in New York Monday.