Realty Income Corporation announced on September 14 a European property venture in which capital accounts advised by KKR & Co. Inc. intend to invest €528 million for a 49% interest, with closing expected September 30 subject to customary conditions. Realty Income would receive approximately €528 million in gross proceeds while retaining 51% ownership and day-to-day asset management, and the contributed portfolio carries a 5.9% effective initial capitalization rate after recurring management fees. The structure gives Realty Income an option to redeem the partner's interest after year 10 and through year 17 at a capped internal rate of return expected at 6.3% to 6.5% and finalized at closing, and rating agencies are expected to treat the investment as 100% permanent equity. Insider Monkey's database showed 34 hedge funds holding Realty Income at the end of 2Q2026, up from 32 funds three months earlier. The company said the deal's value depends on execution, with closing terms, reinvestment returns, and fee profitability determining whether private capital improves shareholder economics beyond the initial cash proceeds.
KKR & Co. Inc.KKR affiliate invests €528 million for a 49% stake in Realty Income's European property venture, a capital deployment for KKR.
Realty Income Corporation
