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Nareit: U.S. REITs Emphasize Debt Issuance as Funding Source
U.S. REITs raised $22.5 billion from secondary debt and equity offerings in the second quarter of 2025, Nareit reported. Of that total, $16.3 billion came from debt offerings, $6.1 billion came from common equity offerings and $100 million came from preferred equity offerings.
Through the first half of the year, REITs raised a total of $39.7 billion, with $25.2 billion coming from secondary debt offerings, $8.7 billion from secondary common equity offerings and $800 million from secondary preferred equity offerings.
Debt issuance has been the primary funding source for REITs in recent years, and Q2 continued that trend. REITs raised $48.1 billion through secondary debt offerings in 2024, compared to $29.4 billion in 2023. In Q2 2025, the average yield to maturity for REIT unsecured debt offerings was 5.5%, according to Nareit. For the first half of the year, the average yield was 5.8%.
- ◦Financing
