US REITs raise $5.71B through capital offerings in June

US equity real estate investment trusts raised $5.71 billion through capital offerings in June, down 23% from the $7.42 billion raised the month prior but up 17% year over year, according to data compiled by S&P Global Market Intelligence.

The majority of capital raised in June came through senior debt offerings, at $4.80 billion. Meanwhile, common equity offerings accounted for $412.9 million and preferred equity offerings totaled $500 million.

Prologis sells $2B of senior notes

Industrial REIT Prologis Inc. raised the most capital in June, selling $2 billion worth of notes in a three-tranche series. The series included $750 million of 4.875% notes due 2028, another $750 million of 5.125% notes due 2034 and $500 million of 5.250% notes due 2053. Net proceeds from the offering were allocated for general corporate purposes, including funding a portion of its planned $3.1 billion acquisition of nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone Inc. and the repayment of any borrowings under its global lines of credit for the closing of the acquisition.

Single-tenant retail REIT Realty Income Corp. followed next, raising roughly $1.20 billion through a two-tranche offering of euro-denominated senior notes.

Healthcare-focused Ventas Inc. raised $750 million through a private placement of exchangeable senior notes due 2026, while self-storage REIT Extra Space Storage Inc. and hotel REIT Ryman Hospitality Properties Inc. each completed senior debt offerings of $450 million and $400 million, respectively.

Ryman Hospitality raised an additional $412.9 million through a common equity offering.

Single-family rental REIT Bluerock Homes Trust Inc. completed the sole preferred equity offering during the month, raising $500 million.

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Industrial REIT Rexford Industrial Realty Inc.'s $644 million common stock offering completed March 31 remains the largest common equity offering year to date, while communications REIT Uniti Group Inc. closed the largest single debt offering at $2.6 billion on Feb. 2.

YTD offering total down slightly year over year

The new offerings completed in June bring the year-to-date total to $34.24 billion, a slight 1.5% below the $34.76 billion raised in the first half of 2022.

The specialty sector — which includes advertising, casino, communications, datacenter, energy infrastructure, farmland and timber REITs — raised the most capital year to date, at $13.70 billion, followed by the industrial and retail sectors at $7.02 billion and $5.12 billion, respectively.