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Real estate companies' debt offerings grew, equity offerings fell YOY in Q1'16


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Real estate companies' debt offerings grew, equity offerings fell YOY in Q1'16

Publicreal estate companies raising capital in the first quarter of 2016 maintainedtheir focus on the debt market, while equity offerings stayed quiet, accordingto SNL Financial data.

REITsand REOCs issued $9.73 billion of debt during the quarter, up from $8.87billion in the year-ago quarter and $7.58 billion in the 2015 fourth quarter.Common equity offerings totaled $8.09 billion, up from $7.51 billion in the2015 fourth quarter but far off the year-ago quarter's total of $18.02 billion.

Onequarter into 2016, J.P. MorganSecurities LLC led all real estate debt underwriters with $1.23billion in deal credit on 11 offerings. Bank of America Merrill Lynch, the 2015 debtunderwriting leader,was in second place with $1.08 billion in deal credit across 13 offerings,followed by MorganStanley, which finished sixth among debt underwriters in 2015.

Notabledebt deals during the quarter included a $1.0 billion from ; offerings of$900.0 millionand $600.0million from CrownCastle International Corp.; offerings of $750.0 million and from ; andofferings of $800.0 millionand $550.0million from SimonProperty Group Inc.

led realestate equity underwriters with $1.93 billion in deal credit on sevenofferings, posting a strong first quarter after a seventh-place finish amongequity underwriters in 2015. The 2015 leader, Bank of America Merrill Lynch,was in second place at quarter's end, with $618.5 million in deal credit on eightofferings. J.P. Morgan Securities was close behind with $606.5 million incredit on six offerings.

Thequarter's notable equity offerings included three from — for , and$841.7 million— for which Goldman Sachs served as the sole book manager.

Therewere no completed REIT or REOC IPOs in the first quarter, after just one dealwas completed in the 2015 fourth quarter: the $48.0 million from .  In all of 2015, five IPOs were completed fora total of $1.22 billion in volume.

Preferredequity offerings, which totaled just $121.9 million across three deals in thefourth quarter of 2015, showed signs of life in the first quarter, with a totalof $591.0 million of issuance over six deals. Still, the figure fell short ofthe year-ago quarter's total of $1.62 billion, also over six offerings.

Theleading preferred equity underwriters in the first quarter were Bank of AmericaMerrill Lynch and Wells FargoSecurities LLC, which each received $151.3 million in deal crediton three offerings. The two firms tied for sixth among real estate preferredequity underwriters in 2015. Morgan Stanley, the 2015 leader, finished third inthe first quarter, with $93.8 million in credit on two offerings.

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SNL Financial is an offering of S&P Global MarketIntelligence.