This 5.6%-Yielding Dividend Stock Showcases the Power of its Diversified Platform with a New $800 Million Deal

• Realty Income is investing $800 cardinal into CityCenter.

• The woody leverages its precocious added gaming and recognition concern verticals.

• This concern volition enactment the REIT's quality to proceed expanding its high-yielding monthly dividend.

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Realty Income (NYSE: O) has built an progressively diversified existent property concern platform. The existent property concern spot (REIT) invests crossed respective spot types (retail, industrial, gaming, and others), geographies (the U.S. and Europe), and the superior stack (equity, preferred equity, and debt). This diversification gives it the flexibility to put wherever it sees the champion opportunities.

The REIT precocious showcased the powerfulness of its diversified concern strategy by making an $800 cardinal preferred equity concern successful 2 starring gaming properties successful Las Vegas. This caller concern supports the diversified REIT's quality to proceed expanding its 5.6%-yielding monthly dividend.

Realty Income's archetypal concern absorption was connected freestanding U.S. retail properties secured by semipermanent net leases (e.g., grocery, convenience, and cause stores). The REIT has since diversified into U.S. concern properties secured by semipermanent nett leases (2011) earlier expanding into the European marketplace (U.K. successful 2019 and different European countries opening successful 2021). It has continued to diversify its level by adding the pursuing caller concern verticals: gaming (2022), data centers (2023), and recognition investments, including existent estate-backed loans and preferred equity investments (2023).

The REIT's latest woody leverages 2 of its much precocious added concern verticals. It's making an $800 cardinal preferred equity concern successful the existent property of CityCenter. This entity owns the ARIA Resort & Casino and Vdara Hotel & Spa successful Las Vegas. These properties see gaming, lodging, luxury retail, and upscale eating space. Funds managed by Blackstone ain the existent estate, portion MGM Resorts maintains and operates the properties.

This preferred equity concern volition alteration Realty Income to make an archetypal yearly complaint of instrumentality of 7.4%. The REIT volition besides person the close of archetypal connection to bargain the underlying existent property successful the aboriginal from Blackstone should it determine to sell.

The transaction expands Realty Income's narration with Blackstone arsenic good arsenic its recognition and gaming platforms. In 2023, Realty Income invested $950 cardinal into the Bellagio Las Vegas. In that deal, Realty Income invested $300 cardinal into a joint task (JV) that owns 95% of the spot and besides made a $650 cardinal preferred equity concern successful the JV.