Apollo Global Management is doubling down on income-focused real estate, agreeing to invest $1 billion for a 49% stake in a joint venture with Realty Income that will own approximately 500 single-tenant retail properties across the U.S. 

The portfolio generates roughly $140 million in annualized base rent and carries a 9.1-year weighted average lease term. The tenant mix is anchored by defensive and necessity-based retail, including Dollar General, CVS, BJ’s Wholesale Club, Family Dollar and Kroger, with exposure spanning dollar stores, grocery, quick-service restaurants and health and fitness. 

Apollo is targeting a 6.875% unlevered IRR, with Realty Income retaining a call option to repurchase Apollo’s stake between years seven and 15 at a price designed to deliver that capped return. 

Apollo Partner Jamshid Ehsani described the transaction as “a landmark deal in the public REIT space,” highlighting its potential as a repeatable framework for large-scale capital deployment. Partner Joseph Jackson added that Realty Income’s “disciplined growth and portfolio performance” made it an attractive partner for long-term investment. 

The structure leverages Apollo’s $536 billion insurance capital base. Realty Income, which manages more than 15,500 properties globally, will continue to operate the assets and earn management fees, while both firms signal ambitions to scale the partnership into a multi-billion-dollar co-investment platform. 

Goldman Sachs acted as structuring agent and financial advisor to Realty Income; Wells Fargo Securities advised Apollo.