Realty Income is acquiring a 21.9% stake in the Bellagio, the iconic Las Vegas hotel and resort, from Blackstone Real Estate Income Trust, paying about $950 million in common and preferred equity for its position. BREIT will retain a 73.1% indirect interest, and MGM Resorts International, which operates the casino and hotel, will retain a 5% interest.

Specifically, Realty Income is investing $300 million of common equity in a new joint venture that owns a 95% interest in the Bellagio's real estate assets. The REIT will also invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture. Realty Income's common equity ownership interest will be subordinate to its $650 million preferred equity investment in the venture.

The Bellagio, situated at the center of the Las Vegas Strip, is subject to an existing triple net lease with approximately 26 years of remaining term. It features approximately 4,000 guestrooms and suites across two towers, 157,000 square feet of gaming space and 200,000 gross square feet of state-of-the-art meeting and event facilities. Located on a 77-acre campus, the resort also includes the iconic Fountains of Bellagio and multiple Michelin Star restaurants.