Realty Income Buys $950M Stake in the Bellagio

Realty Income Buys $950M Stake in the Bellagio Las Vegas attractions show no signs of losing their allure. Realty Income is investing $950 million (22%) in the $5.1 billion Bellagio on the Las Vegas Strip. Realty Income bought its interest from the Blackstone Realty Income Trust (BREIT). The price Realty Income is paying for its interest in Bellagio’s property assets implies the venue is worth 20% more today than what BREIT paid for it four years ago.

BREIT paid $4.25 billion for 95% of the famed resort casino in 2019. Realty Income provides more details in a recently released statement: “Upon closing, Realty Income will invest approximately $300 million of common equity in the joint venture, subject to certain adjustments, to acquire a 21.9% indirect interest in the property, BREIT will retain a 73.1% indirect interest.

Realty Income will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture.” Realty Income is strictly a monthly dividend company structured as a REIT. Bellagio is a resort with roughly 4,000 guestrooms and suites and a casino with 157,000 square feet of gaming space and 200,000 gross square feet of meeting and event facilities.