Bank ofAmerica Merrill Lynch climbed into the lead among underwriters ofreal estate common equity offerings for 2016 with a busy third quarter, whileJ.P. Morgan Securities LLCheld onto the lead among underwriters of public REIT and REOC debt.
In all, public real estate companies issued $10.23 billionof common equity across 33 deals in the third quarter, compared to $10.72billion in 64 deals in the second quarter and just $3.72 billion on 41 deals a yearearlier.
Debt offerings totaled $12.47 billion, in 40 deals, comparedto $15.00 billion in 32 deals in the second quarter and $9.88 billion in 27deals a year earlier.
In taking over the equity underwriting lead, Bank of AmericaMerrill Lynch vaulted past Goldman Sachs & Co. and J.P. Morgan, which led thecategory as of the end of the second quarter. Among the firm's 10 completeddeals during the quarter were an $833.8 million offering from and a$946.1 million offering from American Homes 4 Rent.
Goldman Sachs and J.P. Morgan were both among the otherunderwriters on the Medical Properties offering, but Bank of America MerrillLynch was the sole book manager for the American Homes transaction.
There was only one REIT IPO completed in the third quarter:MedEquities Realty TrustInc's $239.1 million offering, for which nine investment banks served asunderwriters.
Among the top debt issuers of the third quarter wereBoston PropertiesInc., which completed a $1 billion transaction, and , which issued $1billion in debt in a pair of deals.
Wells FargoSecurities LLC remained the top underwriter for the year in theresurgent real estate preferred equity market, with deal credit during thequarter on a $325 million offering from Public Storage and a $90.0 million from In all,REITs and REOCs issued $1.08 billion in preferred equity in 14 deals in thequarter, down from $1.62 billion in 16 deals in the second quarter but up from$263.4 million in two deals a year earlier.