Apollo Global commits $1B to retail property joint venture
Synopsis
Apollo Global Management will invest $1 billion in a joint venture with Realty Income to acquire about 500 U.S. retail properties under long-term net leases. Apollo will hold 49 % while Realty Income retains 51 % ownership and management. The deal is expected to close March 31, 2026.
Apollo Global Management will invest $1 billion in a joint venture with Realty Income to acquire about 500 U.S. retail properties under long-term net leases. Apollo will own 49%, while Realty Income retains control and management. The deal is expected to close March 31, 2026.
Key Highlights
- Apollo Global Management invests $1 billion for a 49 % stake in the retail venture.
- The portfolio includes roughly 500 net-leased retail properties across the U.S.
- Realty Income retains 51 % ownership and management control of the venture.
- The transaction is expected to close on March 31, 2026.
- Realty Income’s 2025 revenue reached $5.75 billion with near 99 % occupancy.
Apollo Global Management will invest $1 billion in a joint venture with real estate investment trust Realty Income to acquire a portfolio of U.S. retail properties. The transaction is expected to close on March 31, 2026.
Apollo will hold a 49 % stake in the newly formed entity, which will own approximately 500 single‑tenant retail properties leased under long-term net leases. Realty Income will retain 51 % ownership, manage the portfolio, and maintain a call option to repurchase Apollo’s stake between the seventh and fifteenth year of the venture.
Retail Portfolio and Lease Structure
The portfolio spans dollar stores, grocery outlets, drug stores, quick-service restaurants, and fitness centres. Properties under net leases require tenants to cover most operating costs, providing predictable rental income. Apollo’s annual return is capped at 6.875 %. The venture includes advisory support from major financial institutions for both parties.
Realty Income reported 2025 revenue of $5.75 billion and net income of $1.06 billion. The company’s portfolio includes more than 15,500 net-leased properties across roughly 90 industries, maintaining an occupancy rate of 98.9 % at year-end. Realty Income has also expanded into industrial and international markets, including Mexico.
Sector Context
The U.S. retail REIT sector continues to show stability. Same-store net operating income for retail-focused REITs rose 3.7 % in 2024, while single-tenant net-lease retail sales in the first three quarters of 2025 totalled over $33 billion, reflecting sustained investor interest in long-term income-generating properties.
FAQs
Q1. What is the Apollo–Realty Income deal about?
Apollo is investing $1 billion to co-own hundreds of U.S. retail properties with Realty Income.
Q2. Who controls the new retail venture?
Realty Income keeps majority ownership (51%) and will continue managing the properties.
Q3. What type of retail properties are included?
Mostly everyday stores like dollar stores, grocery outlets, pharmacies and quick-service restaurants.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
