US equity REIT capital offerings cut by over 80% in October

Editor's note: This is a recurring monthly article using the most current data available at the time of publishing.

Capital markets activity by US equity real estate investment trusts plunged in October, with the entire industry pulling in $1.45 billion for the month, an 81.3% decline compared to $7.74 billion in September.

On an annual basis, the amount of capital raised in October fell 45.3% from the $2.64 billion collected during October 2023, according to S&P Global Market Intelligence data.

Most of the capital raised in October came through common equity offerings, at $1.30 billion, while debt offerings accounted for the remaining $150.0 million.

CareTrust REIT Inc. pulls in the biggest amount of capital in October

Healthcare REIT CareTrust REIT Inc. raised the most capital during the month, collecting $507.8 million through its follow-on common equity offering completed Oct. 10. The REIT intends to contribute the net proceeds from the sale to CTR Partnership LP, its operating partnership, which will in turn use the proceeds to fund new investments including the acquisition of the Tennessee SNF Facilities through a joint venture arrangement.

Manufactured home-focused Equity LifeStyle Properties Inc. followed, as it sold about $317.4 million in common shares under its new $500 million at-the-market offering program announced Feb. 28.

Diversified REIT FrontView REIT Inc. came in third, pulling in about $271.5 million through its IPO common equity offering, completed Oct. 1. This newly-listed REIT intends to use the net proceeds to repay borrowings outstanding under its revolving credit facility and term loan credit facility. The REIT will also use the remaining net proceeds for general business and working capital purposes, which includes potential future acquisitions.

– 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 in the ten months to Oct. 31 was industrial REIT Lineage Inc.'s $5.10 billion IPO common equity offering, completed July 24. Healthcare-focused Welltower Inc.'s $1.04 billion of 3.125% exchangeable senior notes, completed July 9, was the largest single debt offering completed year to-date.

Prologis Inc. has pulled in the most capital overall year to date at $5.17 billion, followed by Lineage at $5.10 billion and Digital Realty Trust at $3.78 billion.

Industrial sector bags the most capital offerings YTD

October's offerings brought the year-to-date total to $59.34 billion, up 17.3% compared with the amount raised by the entire US REIT industry during the first 10 months of 2023.

By property sector, industrial REITs accounted for the largest share of total capital raised year to date, with $11.56 billion. The specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — came in second, with $11.40 billion raised, followed by retail-focused REITs at $10.06 billion.