Beginning with S&P Global Market Intelligence's second-quarter 2019 analysis of at-the-market program usage by real estate investment trusts, Market Intelligence included forward at-the-market sales settled during the respective quarter as part of the total capital raised. Forward sales conducted during the quarter but not yet settled as of quarter-end were not included in the quarterly total. Because of this methodology change, prior quarterly totals presented in this article may not match historical articles published by Market Intelligence.
Proceeds raised by US equity real estate investment trusts through at-the-market programs increased in the fourth quarter of 2023, reaching nearly an all-time quarterly high for the sector.
US REITs raised just over $6.65 billion in aggregate during the fourth quarter, a 30.1% increase over the $5.11 billion raised the quarter prior and a 13.6% rise year over year.
The quarterly total marks the third-highest amount raised in a single quarter by the sector, just below the all-time high of $6.67 billion raised by US REITs in the third quarter of 2021 and the $6.66 billion raised in the fourth quarter of 2021.
Realty Income collects the most capital in Q4 2023
Single-tenant retail REIT Realty Income Corp. raised the most proceeds of any REIT through its at-the-market (ATM) program in the fourth quarter of 2023. During the quarter, the REIT sold another 21.4 million shares under forward sale agreements while also settling 28.5 million shares of its forward sales for $1.60 billion in gross proceeds. As of Dec. 31, 2023, Realty Income had 6.2 million shares of common stock, subject to forward sale confirmations, that were executed but not yet settled. They represented approximately $337.8 million in expected net proceeds.
Datacenter REIT Digital Realty Trust Inc. ranked next, raising $1.10 billion in net proceeds through the sale of nearly 8.7 million shares of common stock during the quarter.
Healthcare REIT Welltower Inc. followed, selling more than 11.8 million shares of common stock through its ATM program during the quarter for $1.03 billion in gross proceeds.
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On Nov. 1, datacenter REIT Equinix Inc. physically settled 564,126 shares sold under its forward sale agreements for net proceeds of $433.3 million. Additionally, the REIT executed seven forward sale agreements under its ATM program during the fourth quarter to sell 643,428 shares of its common stock for an estimated net settlement value of approximately $499.4 million.
Eight other REITs also sold shares on a forward basis through their ATM programs in the fourth quarter: Agree Realty Corp., Easterly Government Properties Inc., EastGroup Properties Inc., Essential Properties Realty Trust Inc., Getty Realty Corp., Rexford Industrial Realty Inc., STAG Industrial Inc. and VICI Properties Inc.
By property sector, single-tenant retail REITs raised the most proceeds through ATM programs in the fourth quarter of 2023 at nearly $1.72 billion, primarily driven by the large amount raised by Realty Income. The datacenter and healthcare sectors placed next, raising $1.53 billion and $1.42 billion, respectively.
