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J.P. Morgan, BofA Merrill Lynch hold top real estate underwriting spots after Q3

J.P. Morgan Securities LLC held on to its spot as the top underwriter of real estate debt offerings through the first three quarters of 2017, and Bank of America Merrill Lynch remained the top real estate equity offering underwriter.

Both firms also led their competitors in deal volume at the end of the first and second quarters of the year. Bank of America Merrill Lynch moved into second place among debt offering underwriters, passing Wells Fargo Securities LLC with $1.87 billion in deal credit over 21 offerings in the quarter, while Morgan Stanley held on to the second-place spot among equity offering underwriters.

In all, public real estate companies' equity offering volume was down both sequentially and year over year in the third quarter, while debt offering volume was up. Public real estate investment trusts and real estate operating companies issued $8.96 billion in equity in the quarter, compared to $14.05 billion in the second quarter and $12.92 billion a year earlier. Public REITs and REOCs issued $17.07 billion in debt during the quarter, compared to $12.53 billion in the second quarter and $14.64 billion a year earlier.

The quarter's largest debt offerings included a $1.40 billion offering from Medical Properties Trust Inc. and a 1.00 billion offering from Equinix Inc. The largest equity transactions in the quarter included a $3.85 billion offering from Crown Castle International Corp. (REIT) and a $1.01 billion offering from Hilton Worldwide Holdings Inc.

Preferred equity offering volume was up in the quarter, to $4.38 billion over 21 deals, compared to $1.24 billion on 10 deals in the second quarter and $1.09 billion over 14 deals in the 2016 third quarter. Bank of America Merrill Lynch, which finished second among preferred equity offering underwriters in 2016, led the category through the first three quarters of 2017, followed by Morgan Stanley.

There were no completed real estate IPOs in the third quarter, after a second quarter that saw three completed deals with a total of $601.2 million in deal volume.

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