16 Apr, 2024

Canadian REIT capital market activity improves in Q1 2024

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By Ronamil Portes

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

Publicly traded Canadian real estate investment trusts collected C$1.20 billion through capital offerings in the first quarter, up 26.2% from the C$950.9 million raised in the fourth quarter of 2023.

However, the first-quarter total was still down 24.3% from the C$1.59 billion raised in the same period a year earlier. All the capital raised in the first quarter of 2024 came from debt offerings.

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Retail REITs take largest share of total capital

Only three property sectors pulled in capital during the first quarter. The retail sector, which consists of shopping centers and other retail properties, raised the majority share of total capital in the first quarter at C$750 million. The diversified and industrial sectors collected C$250 million and C$200 million, respectively.

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RioCan REIT bags the most capital

Shopping center landlord RioCan REIT attracted the most capital in the first quarter, pulling in a total of C$450 million after initially selling C$300 million of 5.470% series AJ senior unsecured debentures due March 1, 2030, completed Feb. 12, and issuing an additional C$150 million principal amount of the same debentures completed March 28.

Another shopping center REIT, First Capital REIT, came in second as it sold C$300 million of 5.572% series B senior unsecured notes due March 1, 2031. The company intends to use the offering's net proceeds to repay its existing debt.

Diversified REIT H&R Real Estate Investment Trust followed, pulling in C$250 million through a senior debt offering due Feb. 28, 2029, while industrial-focused Dream Industrial REIT collected C$200 million, also from a senior debt offering due March 22, 2028.

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