Canadian REIT capital offerings fall more than 50% YOY in Q2 2023

Editor's note: This article is updated on a quarterly basis and was last published April 27.

Publicly traded Canadian real estate investment trusts raised a total of C$721.3 million through capital offerings in the second quarter, a steep decline from the C$1.25 billion collected during the first quarter and a 53% plunge from the C$1.53 billion recorded a year earlier.

All the capital raised during the second quarter came from debt offerings.

Retail REITs amass over 80% of capital

The retail sector, which consists of shopping centers and other retail properties, accounted for the largest share of capital raised during the first half of the year at C$1.59 billion, roughly 80.8% of the total offerings year to date. The industrial and healthcare sectors collected the next-largest amounts, at C$200 million and C$86.3 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 2023 by publicly traded Canadian real estate investment trusts. – For further capital offerings research, try the Global Real Estate Capital Offerings Activity template.

RioCan, SmartCentres raise the most capital

Shopping center landlords RioCan REIT and SmartCentres REIT pulled in the largest amount of capital during the second quarter.

RioCan REIT raised C$300 million through an offering of senior debt due Oct. 1, 2029. The company intends to use the offering's net proceeds to repay amounts owed under certain credit facilities that were incurred in the ordinary course of business. Any remaining balance will go toward general business purposes.

SmartCentres REIT sold C$300 million of unsecured notes due May 29, 2028. The shopping center REIT intends to use the net proceeds for general business purposes and to refinance existing debt, including repaying its C$200 million series I unsecured debentures due May 30, 2023.

Healthcare-focused NorthWest Healthcare Properties REIT followed with a total of C$86.3 million through a debt offering. Diversified REIT Pro REIT sold C$35 million worth of senior notes due June 30, 2028.

The single largest debt offering during the first half of 2023 was retail-focused Choice Properties REIT's C$550 million offering completed March 1, 2023.