US equity REIT capital offerings down by half in February

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

US equity real estate investment trust capital market activity was slashed by half in February, with the industry raising $3.54 billion during the month versus the $7.14 billion raised in January.

The amount of capital raised during the month was 35.8% lower than the $5.52 billion collected during February 2023, according to S&P Global Market Intelligence data.

The majority of capital raised in February came through debt offerings, at $2.26 billion. Common equity offerings accounted for $1.28 billion, while the remaining approximately $2.8 million was obtained through preferred equity offerings.

Alexandria Real Estate Equities collects the most capital

Office-focused Alexandria Real Estate Equities Inc. pulled in the largest amount of capital during the month, raising $1.00 billion after selling $600 million of 5.625% notes due 2054 and $400 million of 5.250% notes due 2036. The office REIT intends to use the net proceeds from the sale for general working capital and other general corporate purposes, which includes repayment of debt as well as development, redevelopment or acquisition of properties.

Healthcare REIT American Healthcare REIT Inc. came in second, raising roughly $772.8 million through its IPO common equity offering, completed Feb. 6.

Following was industrial-focused Prologis Inc., which collected $617.3 million through two debt offerings.

– 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 during the first two months of 2024 was American Healthcare REIT Inc.'s $772.8 million offering. Industrial REIT Prologis Inc.'s $800 million offering, completed Jan. 18, and single tenant-focused Realty Income Corp.'s $800 million offering, completed Jan. 8, were the two largest single debt offerings completed year to date.

At $1.87 billion, Prologis has attracted the most capital overall year to date, followed by Realty Income at $1.25 billion.

Retail sector bags the most capital offerings YTD

The offerings in February brought the year-to-date total to $10.68 billion, 12.2% lower than the capital raised during the first two months of 2023.

By property sector, retail REITs accounted for the largest share of total capital raised year to date with $3.00 billion. The residential sector came in second with $1.90 billion raised, followed by industrial-focused REITs at $1.87 billion.