15 Apr, 2025

US REIT share repurchase activity declines in Q4 2024

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By Ronamil Portes


Share repurchase activity by US equity real estate investment trusts decreased in the fourth quarter of 2024 after a significant decline in the previous quarter, according to an analysis by S&P Global Market Intelligence.

The US REIT sector repurchased $456.2 million in common stock in the fourth quarter, marking a 13.8% decline from the previous quarter and a 4.7% year-over-year decrease.

The analysis included equity REITs that traded on the Nasdaq, NYSE or NYSE American as of each respective quarter-end.

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Largest common stock repurchases

Farmland Partners Inc. repurchased 2.2 million common shares during the quarter for approximately $27.9 million. The shares represented about 4.7% of the farmland-focused REIT's total common stock outstanding, marking the largest proportion repurchased by any REIT in the quarter.

Hotel REIT Park Hotels & Resorts Inc. repurchased $56.3 million in common stock, representing 1.9% of its total common shares outstanding.

Meanwhile, Healthcare Realty Trust Inc. repurchased $95.9 million in common stock during the quarter, the highest amount among equity REITs. The 5.5 million shares it repurchased represented approximately 1.6% of its total shares outstanding.

UDR Inc. recorded the second-largest share repurchase value in the fourth quarter, with the multifamily REIT buying back 1.5 million common shares for approximately $68.1 million, representing about 0.5% of its total common shares outstanding.

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Healthcare REITs led in common stock repurchases by property sector during the fourth quarter, totaling $99.1 million. Healthcare Realty Trust accounted for 96.8% of this total, while Strawberry Fields REIT Inc. repurchased nearly $1.5 million in common shares.

The multifamily and hotel sectors followed, repurchasing $73.9 million and $73.3 million in common shares, respectively.

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New share repurchase plans

Six REITs announced new share repurchase programs during the fourth quarter.

The board of office landlord Alexandria Real Estate Equities Inc. approved a new share repurchase plan on Dec. 9, 2024, authorizing the buyback of up to $500 million in common stock through Dec. 31, 2025. As of Dec. 31, 2024, 496,276 shares valued at $50.1 million had been repurchased under this program.

On Nov. 14, 2024, National Storage Affiliates Trust's board approved a new share repurchase program, authorizing the self-storage REIT to repurchase up to $350 million in common stock.

Healthcare Realty Trust's board of directors authorized the repurchase of up to $300 million in common shares on Oct. 29, 2024, superseding the REIT's previous stock repurchase authorization.

Timber REIT Rayonier Inc.'s board approved a new stock buyback plan in December 2024, allowing for the repurchase of up to $300 million in common stock.

On Oct. 29, 2024, diversified REIT NexPoint Diversified Real Estate Trust's board of trustees authorized the repurchase of up to $20 million of its common shares and its 5.50% series A cumulative preferred shares through Oct. 28. 2026.

Diversified REIT Presidio Property Trust's board of directors authorized a stock repurchase program of up to $6.0 million of outstanding shares of its series A common stock in December 2024.

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