REIT at-the-market program usage falls to $3.12B raised in Q1 2023

Beginning with S&P Global Market Intelligence's second-quarter 2019 analysis of at-the-market program usage by real estate investment trusts, Market Intelligence included forward at-the-market sales settled during the respective quarter as part of the total capital raised. Forward sales conducted during the quarter but not yet settled as of quarter-end were not included in the quarterly total. Because of this methodology change, prior quarterly totals presented in this article may not match historical articles published by Market Intelligence.

At-the-market offering activity by US equity real estate investment trusts declined in the first quarter.

In total, 23 REITs utilized their common stock at-the-market (ATM) programs in the first quarter, collecting $3.12 billion in aggregate proceeds. The quarterly total represents a 46.8% drop from the $5.86 billion raised in the quarter prior and a 7.3% decrease year over year.

Realty Income raises most capital

Realty Income Corp. sold 25,538,809 shares on a forward basis through its ATM program in the first quarter. In addition, the single-tenant REIT settled 12,664,478 shares from outstanding forward-sale agreements for $801.7 million of gross proceeds, the most capital raised by any REIT during the quarter. As of March 31, Realty Income had another 19,619,215 shares subject to forward-sale confirmations that have been executed but not settled, representing $1.2 billion in net proceeds.

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Casino REIT VICI Properties Inc. placed second after settling 21,617,592 shares from outstanding forward-sale agreements for $696.6 million of net proceeds.

Healthcare-focused Welltower Inc. rounded out the top three, selling 5,603,161 shares of common stock through its ATM program for $413.2 of gross proceeds.

By property sector, single-tenant retail REITs raised the most capital through their ATM programs in the first quarter, at $968.5 million. While Realty Income accounted for the majority of the single-tenant total, Getty Realty Corp. also collected $83 million in net proceeds through the settlement of 2,714,136 shares from forward-sale agreements.

Other single-tenant REITs that utilized their ATM programs during the quarter included Essential Properties Realty Trust Inc., NNN REIT Inc., Alpine Income Property Trust Inc., Four Corners Property Trust and NETSTREIT Corp.