23 Jan, 2025

US equity REIT capital offerings rise in 2024

By Sheikh Rishad and Ronamil Portes


Editor's note: This is a recurring monthly article using the most current data available at the time of publishing.

Despite a muted finish, US equity real estate investment trust capital market activity overall picked up substantially year over year in 2024.

As a whole, the US REIT industry raised $72.75 billion in 2024, up 13.9% from $63.86 billion in 2023, according to S&P Global Market Intelligence data.

Debt offerings pulled in $52.19 billion for REITs in 2024, while common equity offerings raised $20.36 billion for the industry. Another $189.7 million was obtained through preferred equity offerings, and operating partnership units sold were worth $587,446.

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The specialty sector — including advertising, casino, communications, datacenter, energy infrastructure, farmland and timber — led the capital-raising activity in 2024, amounting to $17.39 billion. It was followed by the industrial sector, which raised $12.44 billion. The retail sector — including regional malls, shopping centers, single tenant, outlet center and other retail — ranked third, pulling in $11.07 billion.

Prologis raised the most capital

Industrial REIT Prologis Inc. raised the most amount of capital of any REIT in 2024 at $5.17 billion. Lineage Inc. followed, raising $5.10 billion and Digital Realty Trust Inc. was third, raising $4.93 billion. Lineage's IPO was the single-largest common equity offering in 2024.

Information storage-focused Iron Mountain Inc. pulled $1.20 billion in December 2024 from a senior notes offering that was the single-largest debt raise in the entire year. Datacenter REIT Digital Realty Trust Inc. raised $1.15 billion through its 1.875% senior unsecured notes due Nov. 15, 2029, the second-largest debt offering of the year.

Hotel and resort REIT Ashford Hospitality Trust Inc. pulled $139.0 million through a preferred equity offering completed June 27, 2024.

Single-family residential REIT Sun Communities Inc. raised $587,446 through operating partnership units during 2024.

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Capital offering activity declines month over month

The REIT industry raised $3.82 billion in December 2024, down 37% from the previous month and 40.5% year over year.

Senior debt offerings led REIT capital market activity in December 2024, raising $3.50 billion. Additionally, $317.8 million was raised from common equity offerings during the same period.

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Iron Mountain recorded the biggest debt offering of the month. It intends to use net proceeds to repay a portion of the outstanding borrowings under its revolving credit facility and to pay related fees and expenses.

Casino-focused VICI Properties Inc. followed Iron Mountain by raising an offering of $750 million in aggregate principal amount of 5.125% senior unsecured notes due 2031. The company plans to use the proceeds repay its outstanding $750.0 million in aggregate principal amount of 3.500% senior notes due 2025.

Single-family residential REIT American Homes 4 Rent pulled the third-largest amount, selling $500.0 million of 5.25% senior unsubordinated offering due March 15, 2035. The REIT plans to use the proceeds from the offering for general corporate purposes, product development, redemption or repayment of debt securities, acquisitions and working capital.

Office REIT Cousins Properties Inc. made the largest common equity offering in December 2024, worth $282.8 million. The company intends to use the net proceeds to fund a portion of the purchase price of its Sail Tower acquisition.

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