Realty Income has entered into a strategic partnership with Singapore’s sovereign wealth fund GIC to establish a joint venture exceeding $1.5 billion in equity capital. The JV will target U.S. logistics build-to-suit projects, focusing on last-mile distribution facilities in key metropolitan areas such as Atlanta, Dallas and Los Angeles. In addition, the partnership includes a dedicated vehicle to underwrite new development and acquisition opportunities in Mexico’s industrial markets, where Realty Income has identified favorable rental growth dynamics and low vacancy rates below 5%. By co-investing with GIC, Realty Income aims to broaden its capital base, accelerate project delivery timelines and achieve an internal rate of return in the high single digits.

Realty Income’s core retail portfolio remains anchored by necessity-based tenants in service-oriented sectors such as convenience stores, dollar stores and pharmacies, maintaining a 98.3% occupancy rate across more than 12,000 properties. The company has delivered compound annual funds from operations (AFFO) growth of 5.2% over the past decade, alongside 110 consecutive months of monthly dividend increases. With U.S. interest rates forecast to ease in 2026, management projects a renewed opportunity to deploy capital into large-scale acquisitions at accretive yields, targeting annual portfolio expansions of $1.5 billion to $2 billion. These factors underpin Realty Income’s high-quality cash flows and support its dividend sustainability, with management guiding for AFFO per share growth of 4% to 6% next year.