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U.S. REIT Fundraising Rises Nearly 20% Y-O-Y in Q1
U.S. REITs raised $17.6 billion from secondary debt and equity offerings in the first quarter of 2024, according to Nareit. That’s up nearly 20% from $14.9 billion in the same timeframe last year, although well short of the quarterly totals seen in 2021.
Of the Q1 2024 total, $12.9 billion came from debt, $3.7 billion came from follow-on common equity offerings and $210 million was raised through preferred equity offerings. One IPO was completed, raising $773 million. ATM program usage data are reported to Nareit on a lagged basis, so the association expects total capital raised to increase when figures are available.
Thus far in 2024, two M&A deals for REITs have been announced, both involving Blackstone Real Estate Income Trust and Blackstone Real Estate Partners X: the $9.2-billion acquisition of Denver-based Apartment Income REIT and an $8.8-billion deal for Canadian residential company Tricon Residential.
In 2023, 11 acquisitions of publicly traded U.S. REITs were announced, raising $44 billion. Of the $263 billion in public REIT M&A deals from 2019-2023, 65% of the transaction value represents deals between listed REITs in the same property sector, according to Nareit.
Pictured: An Alexandria Real Estate Equities campus in South San Francisco.
- ◦Financing
