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MGM Resorts International (NYSE: MGM) said it has agreed to form a joint venture with Blackstone Real Estate Income Trust (BREIT) that will acquire MGM’s Bellagio real estate assets. MGM will receive a 5% stake in the joint venture and cash of approximately $4.2 billion.

MGM Resorts is a tenant of MGM Growth Properties LLC (NYSE: MGP).

The joint venture will lease the Bellagio assets back to a subsidiary of MGM Resorts for an initial annual rent of $245 million.

REIT returns outpaced the broader market in September and for the year-to-date, as a moderate growth and low interest rate environment continued to favor the sector.

The total returns of the FTSE Nareit All REITs Index rose 2.1% in September, outpacing the S&P 500, which rose 1.9% during the same period. The total returns of the FTSE Nareit Mortgage REIT Index gained 6.7% last month, while the yield on the 10-year Treasury rose 0.2%.

For the year to Sept. 30, the FTSE Nareit All REITs Index was 27.4% higher, while the S&P 500 was 20.6% higher.

The total returns of the FTSE Nareit All REITs Index rose 3.4% in August, outpacing the S&P 500 which dropped 1.6% during the same period. The total returns of the FTSE Nareit Mortgage REIT Index fell 6.5% last month, while the yield on the 10-year Treasury was 0.5% lower.

For the year to Aug. 30, the FTSE Nareit All REITs Index was 24.7% higher, while the S&P 500 was 18.3% higher.

Rob Stevenson, head of real estate equity research at Janney, said the performance of REIT stocks during the past month demonstrates a flight to quality.