05/05/2023 | by

U.S. REITs raised $14.9 billion from secondary debt and equity offerings in the first quarter of 2023. $2.9 billion came from secondary common equity, $685 million came from secondary preferred equity, and $11.4 billion came from secondary debt offerings. The total capital raised represents a 76% increase over the prior quarter, when REITs raised $8.5 billion. Preliminary data show robust usage of ATM programs, as REITs announced $11.6 billion of ATM issuance in the quarter. In 2022, REITs raised $17.4 billion in ATM offerings, following $21.8 billion raised in 2021. Nareit’s historical capital offerings summary can be found here.

During the quarter, two mergers were announced, reflecting an aggregate deal value of $1.6 billion. In April, two additional deals were announced, totaling $18.8 billion. In 2022, $83 billion in acquisitions of publicly traded U.S. REITs was announced, though this activity was largely weighted to the first half of the year, with $67 billion in acquisitions occurring through June 30. Of the $192 billion in public REIT mergers and acquisitions from 2019 through 2023, 74% of the transaction value represents deals between listed REITs in the same property sector.

U.S. REIT Capital Raising

2023 Capital Raising

  • Equity issuance totaled $3.63 billion, with $2.9 billion from common equity offerings and $685 million in preferred equity offerings; preliminary data show that REITs announced $11.6 billion in at-the-market equity issuances. During the same quarter in 2022, total equity issuance including ATM offerings was $10.2 billion, with $13.0 billion in Q1 2021. In Q4 2022, REITs raised $7.0 billion through equity issuances, with $760 million coming from common equity, $200 million from preferred equity, and $6.0 billion from ATM programs.
  • Debt issuance totaled $11.4 billion raised at the secondary market, up slightly from the $10.0 billion issued in Q1 2022 and down from the $23.1 billion in Q1 2021. In Q4 2022, REITs raised $1.5 billion in secondary debt issuances. Average yield to maturity for REIT debt offerings rose to 5.7% in Q1 2023, up from 4.3% for full-year 2022.
U.S REIT Mergers and Acquisitions

Mergers & Acquisitions

In 2023, four deals to acquire publicly-listed REITs have been announced, with a total deal value of $20.4 billion and 97% of the value reflecting acquisitions by listed REITs. In 2022, 10 deals to acquire publicly-listed U.S. REITs were announced, representing a total deal value of $83 billion. Since the beginning of 2021, deals for 30 REITs have been announced or completed. Of the $202.8 billion represented by these acquisitions, 79% is attributed to acquisitions by other listed REITs.

U.S REIT Property Acquisitions

Property Acquisitions & Dispositions

REITs posted $12.6 billion in property acquisitions and $6.0 billion in dispositions in 2022: Q4, with year-to-date totals of $85.7 billion in acquisitions and $36.0 billion in dispositions. In 2021, $127.8 billion in acquisitions and $48.8 billion in dispositions were posted. In 2022: Q4, retail, office, and infrastructure led with acquisitions of $5.8 billion, $1.6 billion, and $890 million, respectively. See Nareit’s T-Tracker for further details.

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