US REIT capital offering activity drops over 67% MOM in October

Editor's note: This article is published monthly with current data as available.

US equity real estate investment trust capital market activity had a steep decline in October as the industry collected a total of $1.32 billion for the month, a 67.5% drop from the $4.05 billion secured in the preceding month.

On an annual basis, the amount of capital raised in October was only 7.5% lower than the $1.43 billion collected during October 2022, according to S&P Global Market Intelligence data.

The majority of the capital raised in October came through debt offerings, at $1.00 billion. Common equity offerings accounted for the remaining $319.1 million, the data shows.

Camden Property Trust, Kimco Realty pulled in the most capital in October

Multifamily REIT Camden Property Trust and shopping center landlord Kimco Realty Corp. brought in the most capital during the month, raising a total of $500 million each.

Camden Property Trust sold $500.0 million worth of 5.850% notes due 2026. The multifamily REIT intends to use the net proceeds to repay a portion of the outstanding balance on the REIT's $1.2 billion unsecured revolving facility as well as for general corporate purposes.

Meanwhile, Kimco Realty also sold about $500.0 million of 6.400% notes due 2034. The company also intends to use the net proceeds for general corporate purposes, including funding for suitable investments and redevelopment opportunities, as well as repayment of the REIT's outstanding debts.

Healthcare-focused Welltower Inc. followed as it sold approximately $307.1 million in common shares under its new $4.00 billion at-the-market offering program announced Aug. 1.

Specialty REIT Postal Realty Trust Inc. also pulled in capital in October, raising about $12.0 million through a common stock offering completed Oct. 11, 2023.

– Set email alerts for future Data Dispatch articles. – Access a spreadsheet listing the offerings completed year to date in 2023 by publicly listed US equity real estate investment trusts. – For further capital offerings research, try the global real estate capital offerings activity template.

As of Oct. 31, the single-largest common equity issuance year to date came from Welltower. Through October, Welltower raised about $3.59 billion through its common stock at-the-market program. Communications-focused Uniti Group Inc.'s $2.60 billion offering, which wrapped up Feb. 2, remained the largest debt offering completed year to date.

At $7.01 billion, American Tower has raised the most capital year to date, followed by industrial REIT Prologis Inc. at $5.37 billion.

Specialty sector bags the most capital offerings YTD

The offerings in October brought the year-to-date total to $47.69 billion, 12.0% higher than the capital raised during the first 10 months of 2022.

The specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — accounted for the largest share of total capital raised thus far in 2023 with $16.53 billion. The retail sector came in second at $7.44 billion, followed by the industrial sector at $7.13 billion.