US equity REIT capital offerings slightly up in September

Editor's note: This article is published monthly with current data available at that time.

Capital market activity by U.S. equity real estate investment trusts remained low in September, raising a total of $1.55 billion, a bit higher than the $1.17 billion raised in August.

On an annual basis, the amount of capital raised in September is 93.7% below the amount raised the year prior. All the capital raised in September came through debt offerings.

Prologis collects the most capital in September

Industrial REIT Prologis Inc. pulled in the most capital during the month, selling $650 million of unsecured notes due Jan. 15, 2033. The company intends to use the net proceeds to finance or refinance its eligible green project portfolio, and might also use the amount to repay its debts or for other capital management activities.

* Click here to set email alerts for future Data Dispatch articles. * Click here for a spreadsheet listing the offerings completed year-to-date in 2022 by publicly listed U.S. equity real estate investment trusts. * For further capital offerings research, try the Global Real Estate Capital Offerings Activity Template.

Datacenter-focused Digital Realty Trust Inc. raised about $550.0 million through an offering of senior unsecured notes due Jan. 15, 2028. Digital Realty intends to use the proceeds from this offering to repay debt, fund property or business acquisitions and other development opportunities, as well as other expenses for general corporate purposes.

During the same month, office REIT Hudson Pacific Properties Inc. also sold $350 million of unsecured notes due Feb. 15, 2028, intending to use the proceeds to finance and/or refinance new or existing eligible green projects and to repay debt.

Casino REIT VICI Properties Inc. attracted the most capital year-to-date through several senior debt and common stock offerings for a total of $8.73 billion, followed by American Tower Corp. at $3.65 billion.

Specialty sector leads YTD capital offerings

The offerings in September brought the year-to-date total to $36.70 billion, 61.8% lower than the capital raised during the first three quarters of 2021.

The specialty sector — advertising, casino, communications, datacenter, energy infrastructure, land and timber real estate — accounts for the largest share of total capital raised year-to-date at $16.27 billion, followed by the retail and residential sectors at $6.80 billion and $4.40 billion, respectively.