US REIT share repurchase activity swells in Q2 2024

Stock buyback activity by US equity real estate investment trusts ramped up in the second quarter, according to an analysis by S&P Global Market Intelligence.

The US REIT sector bought back nearly $1.30 billion worth of common stock during the recent quarter, a 51.4% increase over the quarter prior and more than double the $553.9 million repurchased in the second quarter of 2023.

The analysis included equity REITs that traded on the Nasdaq, NYSE or NYSE American as of the end of the second quarter.

Largest common stock repurchases

Healthcare REIT Healthcare Realty Trust Inc. repurchased $272.7 million worth of common stock during the second quarter, the most of any US REIT. The 17.2 million common shares repurchased represented approximately 4.5% of its total common shares outstanding.

Shopping center REIT Regency Centers Corp. and self-storage REIT Public Storage each repurchased about $200 million worth of common shares during the second quarter.

Washington, DC-focused JBG Smith Properties repurchased 4.7 million common shares during the quarter for approximately $68.6 million. The shares repurchased by JBG represented about 5.1% of its total common stock outstanding, the largest proportion repurchased by any REIT.

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By property sector, healthcare REITs repurchased the most common stock during the second quarter, at $349.0 million. The self-storage and shopping center sectors followed, with $271.8 million and $201.4 million worth of common shares repurchased, respectively.

New share repurchase plans

Five REITs announced new share repurchase plans during the quarter.

Healthcare Realty announced the largest share repurchase plan during the quarter, with its board authorizing the buyback of up to $500 million of common stock on April 30.

On April 26, hotel REIT RLJ Lodging Trust's board approved a new share repurchase program to acquire up to a total of $250 million of common and preferred shares.

Hotel REIT DiamondRock Hospitality Co.'s board approved its new stock buyback plan in May, allowing for the repurchase of up to $200 million of common stock.

On June 18, office REIT Equity Commonwealth's board authorized the repurchase of up to $150 million of common shares.

On May 3, a new share repurchase program was approved by Braemar Hotels & Resorts Inc.'s board, authorizing the hotel REIT to repurchase up to $50 million worth of common stock.