Realty Income agreed a large euro-denominated joint venture with KKR for European net lease assets, contributing a portfolio of 54 properties and 140 units across Spain, Ireland, Poland and the Netherlands that generated an estimated year 1 cash net operating income of €67.7 million. In return, the US-based retail REIT, which carries a market cap of $53.6b, receives about €528 million of gross proceeds while retaining a 51% interest and management control, with KKR taking a 49% stake as a long term capital partner. The deal fits Realty Income's focus on growing a private capital and joint venture platform alongside its balance sheet, using third party equity to scale European exposure while still earning fees and seeking to limit reliance on public share issuance. Closing is currently expected on 30 September 2026, after which investors can watch how quickly Realty Income redeploys the roughly €528 million of proceeds into new deals and whether similar joint ventures take a larger share of its planned US$10b 2026 investment pipeline.
KKR & Co. Inc.KKR takes a 49% stake in Realty Income's €528m European net lease joint venture, deploying long-term capital into a new platform.
Realty Income Corporation
