Realty Income Forms KKR Joint Venture, Its Third Major Capital Partnership This Year

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3▲2 ▼0Impact / 5
Summary · why it matters

Realty Income has formed a new euro-denominated joint venture with KKR to own a diversified portfolio of net-lease assets in Europe, its third major institutional capital partnership of the year following deals with Apollo and GIC. Under the KKR deal, Realty Income is selling a 49% interest in an initial portfolio of 54 properties across Spain, Ireland, Poland, and the Netherlands valued at 528 million euros, or $610 million. In March, Apollo agreed to invest $1 billion to acquire a 49% interest in a joint venture that will initially own 500 single-tenant retail properties in the U.S. In January, Realty Income formed a strategic partnership with Singapore sovereign wealth fund GIC that includes a programmatic joint venture with more than $1.5 billion in capital focused on build-to-suit logistics real estate in the U.S., a cornerstone investment by GIC in Realty Income's U.S. Core Plus Fund, and a $200 million construction financing and takeout purchase of industrial properties in Mexico, the REIT's first investment in the country. Realty Income also invested up to $1.4 billion in a joint venture with Cloud Capital and a global institutional investor for a portfolio of U.S. data centers. The REIT said the partnerships raise non-dilutive capital while it retains majority stakes in the assets, supporting growth in adjusted funds from operations per share and its 5.5% monthly dividend.

Impact on assets 4

Aging Population▲ · 2 stocks
KKR & Co. Inc.
KKR
▲ PositiveCapitalrelevance

KKR formed a new euro-denominated JV with Realty Income, buying a 49% interest in a 54-property European net-lease portfolio valued at €528 million.

Apollo Global Management LLC Class A
APO
▲ PositiveCapitalrelevance

Realty Income's Apollo JV, in which Apollo invested $1 billion for a 49% stake in 500 US retail properties, is cited as one of the year's major capital partnerships.

Artificial Intelligence▲ · 1 stocks
Real Estate▲ · 1 stocks

Off-coverage companies 2

Cloud CapitalPrivate▲ Positive
Capitalrelevance

Realty Income invested up to $1.4 billion in a JV with Cloud Capital and a global institutional investor for a US data-center portfolio.

GIC Private LimitedPrivate▲ Positive
Capitalrelevance

GIC formed a strategic partnership with Realty Income including a programmatic JV with over $1.5 billion in capital and a cornerstone investment in the US Core Plus Fund.

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