Canadian REIT capital market activity recovers QOQ in Q1 2023

Editor's note: This article is updated on a quarterly basis and was last published Jan. 30.

Publicly traded Canadian real estate investment trusts collected a total of C$846 million through capital offerings in the first quarter, a sharp hike from the C$129.7 million raised in the fourth quarter of 2022.

The first-quarter total, however, was still down 50.9% from the C$1.72 billion raised in the same period a year earlier.

Debt offerings accounted for C$806 million of capital acquired during the first quarter, while the remaining C$40 million was collected through common equity offerings.

Retail REITs take largest share of total capital

Only two property sectors pulled in capital during the first quarter. The retail sector, which consists of shopping centers and other retail properties, raised the majority share of total capital in the first quarter at C$790 million. The multifamily sector collected the remaining C$56 million.

– Click here to set email alerts for future Data Dispatch articles. – Click here for a spreadsheet listing the offerings completed year-to-date in 2023 by publicly traded Canadian real estate investment trusts. – For further capital offerings research, try the Global Real Estate Capital Offerings Activity template.

Choice Properties REIT raises the most capital

Retail-focused Choice Properties REIT attracted the most capital in the first quarter, raising C$550 million through an offering of senior debt due March 1, 2033. The company intends to use the offering's net proceeds to repay upon maturity its outstanding C$250 million worth of 3.196% series G senior unsecured debentures that came due March 7. In addition, the REIT will use part of the proceeds to partially or fully repay the balance drawn on its credit facility, as well as for general business purposes.

Shopping center landlord RioCan REIT came in second with its C$200 million private placement of 5.611% series AG senior unsecured debentures due Oct. 6, 2027. The REIT intends to use the proceeds to repay existing debt and for general business purposes.