REIT share repurchase activity on the rise in H1

Share repurchase activity by public U.S. real estate investment trusts picked up in the first half of 2022, rising to $3.05 billion in aggregate value, according to an analysis by S&P Global Market Intelligence.

Office REITs repurchase most common stock

Office REITs repurchased the most common shares in the first half, at approximately $619.3 million in total. Within the office sector, Hudson Pacific Properties Inc. bought back $237.2 million of common stock, or roughly 6.3% of its shares outstanding. SL Green Realty Corp. repurchased $151.2 million of stock, while Equity Commonwealth bought back approximately $115.3 million of stock.

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The communications sector followed next at $499.4 million, of which SBA Communications Corp. repurchased the vast majority, at $431.6 million, while Crown Castle Inc. repurchased $63.3 million of shares and Uniti Group Inc. bought back $4.4 million.

The hotel sector rounded out the top three, with roughly $363.7 million of shares repurchased. Within the hotel sector, Park Hotels & Resorts Inc. bought back $220 million of shares, while Sunstone Hotel Investors Inc. repurchased approximately $81.2 million and RLJ Lodging Trust repurchased $52.3 million of stock.

Other REITs that were among the largest repurchasers for the half were JBG Smith Properties, which bought back $306.8 million of common stock, roughly 9.3% of its shares outstanding, and timber REIT Weyerhaeuser Co., which repurchased $258.2 million of stock.

New buyback plans

Multifamily REIT Apartment Income REIT Corp. and healthcare-focused Omega Healthcare Investors Inc. announced the largest new repurchase plans during the half, each allowing up to $500 million of shares to be bought back.

Shopping center-focused Kite Realty Group Trust announced a $150 million share buyback program in February and increased the target size by $150 million in April, authorizing share repurchases of up to $300 million in aggregate.

Easterly Government Properties Inc. launched its stock repurchase program in April, allowing the office REIT to buy back up to 4,538,994 shares of its common stock, or approximately 5% of its outstanding shares as of the authorization date.