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US equity REIT capital offerings down more than half in October

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US equity REIT capital offerings down more than half in October

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

Capital market activity by U.S. equity real estate investment trusts slowed in October, pulling in a total of $1.12 billion, down from the $2.27 billion raised in September.

On an annual basis, the amount of capital raised in October is nearly 43% below the amount raised the year prior. All the capital raised in October came from debt offerings.

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Realty Income accounts for more than 60% of October's total offerings

Single-tenant retail REIT Realty Income Corp. collected the most capital during the month, raising $750 million through an offering of senior debt due Oct. 13, 2032. The company intends to use the net proceeds for general corporate purposes, including repayment of debt obligations, hedging purposes, property development and acquisition, as well as expansion and improvement of certain properties in the REIT's portfolio.

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Rounding out the offerings in October was industrial-focused Prologis Inc., which sold $370.1 million of unsecured notes due Jan. 15, 2031. Prologis intends to use the proceeds for general corporate purposes, which include repayment or repurchase of debt, or managing the REIT's other capital needs.

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Casino REIT VICI Properties Inc. attracted the most capital year-to-date through several senior debt and common stock offerings totaling $8.73 billion, followed by Realty Income at $3.76 billion.

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Specialty sector leads YTD capital offerings

The offerings in October brought the year-to-date total to $38.73 billion, 60.5% lower than the capital raised during the first 10 months of 2021.

The specialty sector — advertising, casino, communications, datacenter, energy infrastructure, land and timber real estate accounts for the largest share of total capital raised year-to-date at $16.28 billion, followed by the retail and residential sectors at $7.89 billion and $4.47 billion, respectively.

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