On July 3, Realty Income rose 3.02% in regular trading, trading at $63.69/share, with turnover of $203 million. The rally was driven by the company's announcement of a strategic joint venture targeting hyperscale data centers.

Realty Income disclosed it has formed a programmatic joint venture with Cloud Capital and a global institutional investor to invest in hyperscale data centers. The company plans to invest up to $1.4 billion, with initial investments of approximately $700 million expected to be funded between Q2 and Q3. The first transaction involves acquiring a 45% interest in a hyperscale data center asset in Northern Virginia, which is fully leased under a long-term triple-net lease. The initial seed asset portfolio is valued at over $6 billion. The agreement also includes the future acquisition of two additional assets currently under development.

The move represents a significant strategic expansion for the S&P 500 Dividend Aristocrat into the rapidly growing data center asset class. As of late June, the company reported approximately $4 billion in total available liquidity on a pro-rata basis, providing ample capacity to fund the investment.

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