Realty Income Invests $800 Million in CityCenter Las Vegas Real Estate

Realty Income has announced a substantial $800 million perpetual preferred equity investment in Las Vegas' CityCenter assets, which include the ARIA Resort & Casino and Vdara Hotel & Spa. These iconic properties are owned by funds affiliated with Blackstone Real Estate and will continue to be operated by MGM Resorts International.

Blackstone Real Estate will retain full common equity ownership of the property, maintaining its stake while benefiting from Realty Income's investment. This strategic move represents Realty Income's second major investment with Blackstone Real Estate, following a $950 million investment in Bellagio Las Vegas earlier this year.

Realty Income CEO Sumit Roy expressed enthusiasm about the deal, stating, “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.” The investment is expected to yield an initial return of 7.4%, with increases starting in the fifth year. Additionally, the deal will provide Realty Income with an 8.3% return upon the redemption of the preferred equity amount.

The ARIA Resort & Casino and Vdara Hotel & Spa are situated at the heart of the Las Vegas Strip, offering a total of about 5,500 rooms and 500,000 square feet of convention space. These facilities are known for their luxurious amenities and prime location, making them a key part of the vibrant Las Vegas entertainment scene.

In light of this significant investment, Realty Income has also increased its 2025 investment volume outlook to over $6.0 billion, reflecting the company's confidence in the Las Vegas market and its strategic partnerships. The transaction is scheduled to close on December 9, marking a pivotal moment for both Realty Income and the Las Vegas real estate market.

This investment underscores the growing interest in the Las Vegas Strip, a region that continues to attract major real estate investments due to its robust tourism and entertainment industry. Realty Income's continued commitment to the area signals a positive outlook for the future of Las Vegas real estate and the broader hospitality sector.