US REIT share repurchase activity low in Q4 2023

Share repurchase activity by US equity real estate investment trusts was low in the fourth quarter of 2023, with roughly $479.5 million worth of common stock repurchased, according to an analysis by S&P Global Market Intelligence.

The figure marked a 52.9% drop from the quarter prior and a 44.7% fall year over year.

The analysis included US equity REITs that currently trade on the Nasdaq, NYSE or NYSE American.

JBG Smith continues to repurchase shares

Washington D.C.-focused JBG Smith Properties and single-tenant retail REIT Alpine Income Property Trust Inc. each repurchased approximately 4.2% of their total shares outstanding during the fourth quarter, the largest percentage of all US REITs.

Hotel REIT Xenia Hotels & Resorts Inc. followed next, repurchasing roughly 3.7% of its outstanding shares during the quarter.

Meanwhile, multifamily REIT Apartment Income REIT Corp. repurchased $71.2 million worth of common stock in the fourth quarter, the largest dollar amount of any US REIT. The repurchased shares equated to roughly 1.4% of the REITs total shares outstanding.

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In aggregate, multifamily REITs repurchased $139.5 million worth of shares in the fourth quarter, the most of any property sector. In addition to Apartment Income REIT, Equity Residential repurchased $49.1 million worth of shares during the quarter. Other multifamily REITs included Aimco with $9.6 million worth of shares repurchased, Centerspace with $5.3 million and BRT Apartments Corp. with $3.6 million worth.

The hotel sector followed next, with $113.1 million worth of shares repurchased in total. Other hotel REITs in addition to Xenia Hotels & Resorts that repurchased shares during the quarter included Host Hotels & Resorts Inc. at $31.4 million worth and Sunstone Hotel Investors Inc. at $20.8 million worth.

New share repurchase program announcements

Seven REITs announced either new common share repurchase programs or expansions to their existing share repurchase plans during the fourth quarter.

Self-storage REIT National Storage Affiliates Trust announced the largest new repurchase program of the quarter. On Dec. 1, 2023, the REIT's board of directors approved the repurchase of up to $275.0 million of the REIT's common shares. During the fourth quarter, National Storage Affiliates repurchased $27.3 million worth of common stock.

Xenia Hotels & Resorts placed next, announcing a $100 million increase to its existing share repurchase authorization on Nov. 17, 2023.

Elme Communities' board of directors authorized a share repurchase program of up to $50.0 million of the REIT's common shares on Oct. 26, 2023. During the fourth quarter, Elme Communities repurchased 24,049 common shares at a weighted-average price of $14.49 apiece for $348,470 in total.

On Oct. 6, 2023, One Liberty Properties Inc.'s board of directors approved a share repurchase plan authorizing the REIT to repurchase up to $10 million of its common shares. Later on Dec. 5, 2023, One Liberty Properties announced that its board of directors authorized a replenishment of its October 2023 stock repurchase authorization, bringing the maximum repurchase capacity back to $10 million. According to the press release on the matter, the REIT repurchased approximately $1.9 million worth of shares between Oct. 6 and Dec. 4.

BRT Apartments' board of directors also authorized a $7.23 million replenishment of its existing share repurchase authorization on Dec. 4, 2023, increasing its repurchase authorization to $10 million.

On Nov. 9, 2023, Strawberry Fields REIT Inc.'s board of directors authorized the REIT to repurchase up to $5 million worth of its common stock.

Rounding out the list was Medalist Diversified REIT Inc., whose board of directors approved the repurchase of an additional 200,000 common shares at a maximum price of $6.00 per share on Oct. 18, 2023. Following the approval of the increase, the REIT had capacity to repurchase up to 228,991 common shares in total under the program.