Bellagio Las Vegas Catches Eye Of REIT Giant Realty Income Corp: Here Are The Details
Portfolio Pulse from Lekha Gupta
Realty Income Corp (NYSE:O) plans to invest $950 million to acquire a 21.9% stake in a joint venture that owns 95% of the real estate assets of The Bellagio Las Vegas. The stake is being purchased from Blackstone Real Estate Income Trust, Inc. of Blackstone Inc (NYSE:BX) for around $300 million. Realty Income will also acquire a yield-bearing preferred equity interest in the joint venture for $650 million. The transaction is expected to close in Q4 2023. MGM Resorts International (NYSE:MGM) will retain a 5.0% ownership in the asset.
August 25, 2023 | 2:10 pm
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POSITIVE IMPACT
Realty Income Corp is investing $950 million to acquire a stake in a joint venture that owns The Bellagio Las Vegas. This could potentially increase the company's asset base and revenue in the long term.
The acquisition of a stake in a joint venture that owns a significant real estate asset like The Bellagio Las Vegas could potentially increase Realty Income Corp's asset base and provide a new source of revenue. This could positively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
MGM Resorts International will retain a 5.0% ownership in the joint venture that owns The Bellagio Las Vegas. This could potentially impact the company's asset base and revenue.
MGM Resorts International's retention of a 5.0% ownership in the joint venture that owns The Bellagio Las Vegas could potentially impact the company's asset base and revenue. However, as the ownership percentage is relatively small, the impact on the company's stock price in the short term is likely to be neutral.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Blackstone Inc is selling a 21.9% stake in a joint venture that owns The Bellagio Las Vegas to Realty Income Corp for around $300 million. This could potentially impact the company's asset base and revenue.
The sale of a significant stake in a joint venture that owns a major real estate asset like The Bellagio Las Vegas could potentially decrease Blackstone Inc's asset base and impact its revenue. This could negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80