U.S. equity REITs sold $1.48 billion of common stock through at-the-market offerings in the fourth quarter of 2016, a 78.5% increase from $830.5 million raised in the fourth quarter of 2015.
On a sequential basis, the fourth-quarter total was 28.3% lower than the $2.07 billion accumulated in the third quarter of 2016.
During the fourth quarter, 34 U.S. REITs tapped their ATM programs, 11 fewer than the 45 REITs that offered stock under ATM programs in the third quarter, but 13 more than the 21 REITs that raised capital through their ATM programs during the last quarter of 2015.
REITs in the office sector raised the most equity — $566.4 million — during the fourth quarter through ATM share sales. The industrial sector followed, with six REITs raising an aggregate $281.3 million.
During the fourth quarter, Alexandria Real Estate Equities Inc. raised the most equity through ATM share sales at $354.2 million, while STAG Industrial Inc. took second place, raising roughly $182 million. Corporate Office Properties Trust, which raised $110 million, was third.
2017 activity
Year-to-date through March 31, 12 U.S. REITs announced new ATM programs, with nearly $4.4 billion in total capacity.
Welltower Inc. in February announced a $1 billion ATM program, the largest program launched in the last four quarters. Education Realty Trust Inc. on Feb. 21 announced the second-largest ATM program, at $500 million. The forward shares may be settled through December 2018.
Thirty-four sales agents were involved in the programs announced year-to-date as of March 31, with Merrill Lynch Pierce Fenner & Smith Inc. ranking first, working on nine deals. Jefferies LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC tied for the No. 2 spot, working on six ATM deals apiece.
Click here to view these charts in Excel format, and click here to access SNL's Real Estate offerings activity template from the Template Library. Also, track all recent capital-raising activity in the sector here. |
