US equity REIT capital offerings down by over 50% in April

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

US equity real estate investment trust capital market activity plunged 59.2% month over month in April, with the industry raising $2.11 billion during the month, down from $5.17 billion in March.

The amount of capital raised during the month was 37.3% lower than the $3.37 billion collected in April 2023, according to S&P Global Market Intelligence data.

Nearly all of the capital raised in April came through debt as REITs secured $1.48 billion through note offerings. Common equity offerings accounted for $606.4 million, while the remaining $30.0 million was obtained through a preferred equity offering.

Prologis collects the most capital in April

Industrial REIT Prologis Inc. brought in the largest amount of capital during the month, raising $1.02 billion after selling $585.4 million of 4.000% notes due 2034 and $431.7 million of 5.625% notes due 2040. Prologis intends to use the net proceeds from the sale to repay borrowings under the euro and US dollar tranches of its global lines of credit and use the remainder for general corporate purposes and to repay, repurchase or tender for other indebtedness.

Healthcare-focused Welltower Inc. raised the second-largest amount. It sold approximately $583.5 million in common shares under its new $3.50 billion at-the-market offering program announced Feb. 15.

Office landlord Brandywine Realty Trust sold $400.0 million of 8.875% guaranteed notes due April 12, 2029. The company intends to use the net proceeds to repurchase or redeem the $340 million outstanding principal amount of the REIT's 4.10% Guaranteed Notes due Oct. 1, 2024. Brandywine Realty also intends to use the proceeds for general corporate purposes, which includes repayment of the REIT's other existing debts.

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

At $2.88 billion, Prologis has attracted the most capital overall year to date, followed by American Tower Corp. at $1.30 billion.

Industrial sector bags the most capital offerings YTD

The offerings in April brought the year-to-date total to $17.97 billion, 17.6% lower than what the sector raised during the first four months of 2023.

By property sector, industrial REITs accounted for the largest share of total capital raised year to date with $3.95 billion. The retail sector came in second with $3.33 billion raised, followed by the the specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — at $2.44 billion.