US equity REIT capital offerings up 14.1% MOM in March

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

US equity real estate investment trust capital market activity grew by 14.1% month over month in March, with the industry pulling in a total of $4.04 billion during the month, an increase from the $3.54 billion raised in February.

However, the amount of capital raised was 35.4% lower than the $6.26 billion collected during March 2023, according to S&P Global Market Intelligence data.

Of the total, $3.70 billion came through debt offerings. Common equity offerings accounted for $344.2 million, while the remaining approximately $600,000 was obtained through operating partnership units.

American Tower Corp. raises the most capital in March

Communications REIT American Tower Corp. collected the biggest amount of capital during the month, pulling in a total of $1.30 billion after selling two sets of senior unsecured notes worth $650 million each with respective maturity dates of 2029 and 2034. American Tower Corp. intends to use the net proceeds from the sale to repay its existing indebtedness under the 2021 Multicurrency Credit Facility. The net proceeds might also be invested temporarily in short-term marketable securities.

Casino-focused VICI Properties Inc. followed with a total of $1.05 billion after selling $550 million of 5.750% senior unsecured notes due 2034 and $500 million of 6.125% senior unsecured notes due 2054. The casino REIT intends to use the net proceeds to repay the REIT's outstanding debt securities, which includes the $1.02 billion in aggregate principal amount of its 2024 exchange notes and the $25.8 million in aggregate principal amount of its 2024 MGP Notes.

– 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 quarter of 2024 was American Healthcare's $772.8 million IPO. Hotel landlord Ryman Hospitality Properties Inc.'s $1.00 billion worth of unsecured notes, completed March 21, was the largest single debt offering completed year to date.

At $1.87 billion, Prologis Inc. has attracted the most capital overall year to date, followed by American Tower at $1.30 billion.

Retail sector bags the most capital offerings YTD

The offerings in March brought the year-to-date total to $14.73 billion, 20.1% lower than the capital raised during the first quarter of 2023.

By property sector, retail REITs accounted for the largest share of total capital raised year to date with $3.00 billion. The specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — came in second with $2.44 billion raised, followed by residential-focused REITs at $2.26 billion.