US REIT share repurchase activity picks up in Q1 2024

Share repurchase activity by US equity real estate investment trusts picked up in the first quarter of 2024, after a slow quarter prior, according to an analysis by S&P Global Market Intelligence.

In aggregate, the US REIT sector repurchased roughly $852.6 million worth of common stock in the first quarter, a 77.8% increase over the $479.6 million repurchased the quarter prior. Year over year, share repurchase activity for the sector was nearly flat, down a very slight 0.1%.

The analysis included US equity REITs that currently traded on the Nasdaq, NYSE or NYSE American as of each respective quarter-end.

National Storage Affiliates Trust repurchases most common shares

Self-storage REIT National Storage Affiliates Trust repurchased roughly $203.5 million worth of common stock during the quarter, the most of any US REIT. The repurchased shares represented approximately 6.7% of the REIT's total shares outstanding.

JBG Smith Properties also continued to repurchase common stock during the recent quarter, buying back about 3 million common shares for about $49.3 million, approximately 3.2% of the REIT's total shares outstanding.

Communications REIT SBA Communications Corp. and healthcare REIT Healthpeak Properties Inc. both repurchased more than $100 million worth of common stock in the first quarter.

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By property sector, self-storage REITs repurchased the most common stock during the first quarter, at $204.4 million in aggregate. While the vast majority of the self-storage total stemmed from National Storage Affiliates Trust, CubeSmart also repurchased more than $800,000 worth of common shares in the quarter.

The communications and multifamily sectors followed next, purchasing $134.7 million and $119.1 million worth of common stock, respectively.

New share repurchase program announcements

Five REITs announced new common share repurchase programs during the first quarter.

On Feb. 8, regional mall REIT Simon Property Group Inc. announced its new repurchase plan, allowing the REIT to purchase up to $2.0 billion of its common stock over the next 24 months.

Office REIT Kilroy Realty Corp.'s board of directors approved its new share repurchase program, authorizing the repurchase of $500 million worth of common stock.

On Feb. 16, National Health Investors Inc.'s board of directors renewed its stock repurchase program, authorizing the healthcare REIT to purchase up to $160 million worth of common shares over the following year.

Broadstone Net Lease Inc.'s board of directors reauthorized its share repurchase program March 12, authorizing the repurchase of $150 million worth of common stock over a 12-month period beginning March 14.

On Jan. 10, manufactured home REIT UMH Properties Inc.'s board of directors reaffirmed its common stock repurchase program, authorizing the repurchase of up to $25 million in aggregate.