US equity REIT capital offerings nudge higher in September

Editor's note: This article is published monthly with current data available at that time.

US equity real estate investment trust capital market activity increased 1.5% month over month in September, as the industry raised $7.13 billion compared to $7.03 billion in August.

On an annual basis, September's capital raise was 61.0% higher than the $4.43 billion collected in September 2023, according to S&P Global Market Intelligence data.

Most of the capital raised in September came through debt offerings, at $6.40 billion. Common equity offerings accounted for the remaining $728.8 million.

Simon Property Group raised the largest capital in September

Regional mall landlord Simon Property Group Inc. collected the most capital in September after selling $1.00 billion of 4.750% notes due 2034.

Datacenter-focused Digital Realty Trust Inc. raised the second-largest amount, sold approximately $938.5 million of 3.875% guaranteed notes due 2033. The company intends to use the net proceeds to finance or refinance the REIT's eligible green projects. Pending this allocation, the proceeds may be used to temporarily repay debt, acquire additional properties or businesses, fund development opportunities, invest in interest-bearing accounts or securities, as well as to provide for working capital and other general corporate purposes.

Multifamily REIT Equity Residential was third, selling $600.0 million of 4.650% notes due September 15, 2034.

– Set email alerts for future Data Dispatch articles. – Access a spreadsheet listing the offerings completed year to date in 2024 by publicly listed US equity real estate investment trusts. – For further capital offerings research, try the global real estate capital offerings activity template.

The largest single common equity offering in the nine months to Sept. 30 was industrial REIT Lineage Inc.'s $5.10 billion IPO common equity offering, completed July 24. Healthcare-focused Welltower Inc.'s $1.04 billion of 3.125% exchangeable senior notes, completed July 9, was the largest single debt offering completed year to-date.

Prologis Inc. has pulled in the most capital overall year to date at $5.17 billion, followed by Lineage at $5.10 billion and Digital Realty Trust at $3.11 billion.

Industrial sector bags the most capital offerings YTD

September's offerings brought the year-to-date total to $56.35 billion, up 17.5% compared with the amount raised by the entire US REIT industry during the first three quarters of 2023.

Industrial REITs accounted for the largest share of total capital raised year to date, with $11.56 billion. The specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — came in second, with $10.73 billion raised, followed by retail-focused REITs at $9.42 billion.