Canadian REIT capital offerings cut by more than half in 2022

Editor's note: This article is updated on a quarterly basis and was last published Oct. 24.

Publicly traded Canadian real estate investment trusts pulled in a total of C$3.54 billion through capital offerings in 2022, less than half of the C$8.22 billion collected a year earlier.

Debt offerings accounted for C$1.95 billion of capital raised, while roughly C$1.50 billion was collected through common equity offerings. The remaining C$83.0 million were raised through operating partnership units.

Retail REITs get the highest share of total capital YTD

The retail sector, which consists of shopping centers and other retail properties, raised the largest amount of total capital in 2022 at C$1.58 billion. The industrial and multifamily sectors pulled in the next largest amounts at C$808.6 million and C$406.5 million, respectively.

* 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 traded Canadian real estate investment trusts. * For further capital offerings research, try the Global Real Estate Capital Offerings Activity template.

Dream Industrial REIT raised over C$520 million in 2022

Industrial-focused Dream Industrial REIT collected the largest amount of capital in 2022 through debt and common stock offerings totaling C$520.2 million. Retail REIT Choice Properties REIT came in second, pulling in C$500.0 million through a senior debt offering due June 24, 2032.

In 2022, industrial REITs Summit Industrial Income REIT and Dream Industrial REIT both raised the most capital in a single common stock offering transaction, at roughly C$230 million each.

Capital offerings activity remain weak in Q4

The weak capital market activity of Canadian REITs continued during the fourth quarter, when C$129.7 million was raised. The figure was 20.5% below the amount raised in the previous quarter and a 94.0% plunge from the collected amount over the same quarter in 2021.

During the fourth quarter, Nexus Industrial REIT collected C$84.7 million through a common equity offering completed Dec. 8, 2022, while office REIT Slate Office REIT raised C$45.0 million through an offering of subordinated debt due Dec. 31, 2027.