Realty Income plans private investment fund to boost shareholder returns

Realty Income, a major real estate investment trust (REIT), plans to launch a private investment fund targeting institutional investors. This move aims to tap into the vast private capital market, which holds 90% of the U.S. commercial real estate. The fund will focus on U.S. net lease properties and will initially use some of Realty Income's existing assets. By attracting third-party capital, the REIT expects to increase its acquisition capabilities and generate higher returns for shareholders. This strategy could enhance Realty Income's earnings and valuation, as asset managers typically receive higher market valuations than traditional REITs. The company aims to leverage this approach to boost shareholder value through increased dividends and share price growth.