Realty Income Forms JV With Cloud Capital, Affiliates To Invest $1.4B To Acquire 45% Stake In Stabilized Hyperscale Data Center In Virginia

Realty Income Corporation ((Realty Income, NYSE: O ), The Monthly Dividend Company®, today announced a strategic joint venture with Cloud Capital and its affiliates ("Cloud Capital") and a global institutional investor (the "Global Investor").

The joint venture intends to invest in a diversified portfolio of stabilized hyperscale assets leased to investment-grade tenants under long-duration, triple-net leases.

Realty Income expects to invest up to $1.4 billion that will be funded over time, with initial investments of approximately $700 million expected to be funded between the second and third quarter of 2026.

As part of the transaction, Realty Income will acquire an initial 45% interest in the first Portfolio asset, a stabilized hyperscale data center asset located in Northern Virginia's "data center alley" that is fully leased to an investment-grade hyperscale tenant under a long-term triple-net lease.

Realty Income has also agreed to acquire similar interests in two assets under development upon completion in the coming years, subject to certain conditions being satisfied.

CloudHQ, a leading private global data center company, will provide property management and development management services to the Portfolio.

Cloud Capital will hold a minority investment in the Portfolio.