Blue Owl Real Estate Net Lease Trust Boosts Distributions

The firm ended the year with a $5.4B deployment, solid returns across share classes, and nearly 4,000 assets.

January 28, 2026

Distribution Rates Move Higher

Blue Owl Real Estate Net Lease Trust is raising its distribution rate. Starting January 31, shareholders across all common share classes will receive $0.7500 per share annually—up from the prior $0.7000. The decision follows a year of consistent returns, significant portfolio growth, and increased investor demand.

In 2025, the trust deployed over $5.4 billion into net lease equity investments. Those deals came with an average cap rate of 8.1% and built-in rent escalators of 2.3%. By year-end, the portfolio included 3,889 properties, with a weighted average lease term of 19 years and annual rental growth of 2.2%. The strategy continues to focus on long-duration, inflation-linked income streams backed by long-term leases.

Monthly distributions remained steady throughout the year, while total return performance held up across all share classes.

Returns Across Share Classes

Investors saw annualized distribution rates ranging from 5.85% to 6.67%, depending on the class. For those reinvesting distributions and excluding upfront selling commissions, total returns ranged from 9.92% to 10.89%. Returns were lower when factoring in maximum commissions but still competitive.

Class I shares delivered the highest year-to-date and inception-to-date returns—both just under 11%. Class N, the newest share class launched in mid-2024, also showed early traction with a 10.26% return for 2025, excluding commissions.

Outlook and Strategic Focus

The increase in distributions reflects the firm’s ability to scale its platform while maintaining performance. Investors are seeing both income and capital appreciation, and the rising payout suggests confidence in forward cash flows. Blue Owl’s net lease strategy continues to prioritize stability and long-term income, anchored by predictable rent growth and a growing footprint.