US REITs raise more than $4B through at-the-market programs in Q1 2024

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 totaled $4.07 billion for the first quarter of 2024, according to an analysis by S&P Global Market Intelligence.

The quarter total represents a 38.8% drop compared to the near-record high $6.65 billion raised in the quarter prior, but a 30.6% jump year over year.

Welltower raises the most capital in Q1

Healthcare REIT Welltower Inc. sold more than $26.6 million shares through its at-the-market (ATM) program in the first quarter of 2024, totaling nearly $2.43 billion in gross proceeds, the most of any US REIT for the quarter.

Single tenant REIT Realty Income Corp. placed next. During the quarter, the REIT sold 4.6 million shares on a forward basis through its ATM program, while also settling 9.6 million shares for $547 million in gross proceeds. As of quarter-end, Realty Income had 1.2 million shares of common stock subject to forward sale agreements still outstanding, representing $62.9 million in net proceeds. The REIT expects to fully settle its outstanding forward sale agreements by June 30.

CareTrust REIT Inc., another healthcare REIT, sold 11.6 million shares of common stock through its ATM program in the quarter for $273.2 million in gross proceeds.

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Two industrial REITs, Rexford Industrial Realty Inc. and Terreno Realty Corp., also raised more than $100 million through their ATM programs during the quarter.

While none of the shares have been settled yet, casino REIT VICI Properties Inc. sold more than 9.6 million common shares on a forward basis through its ATM program in the recent quarter, representing approximately $305.5 million in gross proceeds. As of March 31, VICI Properties had approximately 22.9 million forward shares remaining to be settled under its ATM program, representing $682.7 million in net cash proceeds if the REIT were to physically settle all the shares.

Other REITs that sold shares through their ATM program during the quarter on a forward basis included American Homes 4 Rent, STAG Industrial Inc., EastGroup Properties Inc., NETSTREIT Corp., Easterly Government Properties Inc. and Agree Realty Corp.

By property sector, healthcare REITs raised the most proceeds in the first quarter through their ATM programs at $2.82 billion in aggregate. While the vast majority of the healthcare REIT total stemmed from the before-mentioned Welltower and CareTrust, other healthcare REITs that utilized their ATM programs during the quarter included Ventas Inc., Omega Healthcare Investors Inc., LTC Properties Inc. and Community Healthcare Trust Inc.

The single-tenant retail sector was next, raising $674.7 million in aggregate through their ATM programs in the quarter, followed by the industrial REIT sector at $377.4 million.