During the second quarter, U.S. equity real estate investment trusts raised $2.70 billion in capital through at-the-market offerings, an increase of 213.8% from the amount raised in the first quarter.
On a year-over-year basis, the second-quarter total was 27.6% above the $2.12 billion generated in the second quarter of 2016.
A total of 38 U.S. REITs tapped into their ATM programs in the second quarter, eight more than the 30 REITs that offered stock under equity distribution agreements in the first quarter, and four more than the 34 REITs that accumulated capital through their ATM programs during the second quarter of 2016.
Douglas Emmett Inc. gathered the most capital through ATM issuances in the second quarter, at $349.7 million. Alexandria Real Estate Equities Inc. and STAG Industrial Inc. followed, raising $245.8 million and $205.8 million, respectively.
Thirteen REITs announced new ATM program since SNL’s last analysis on June 1, bringing the total number of new programs announced in 2017 to 36, with more than $12 billion in capacity.
Welltower Inc. in February announced a $1 billion ATM program, the largest program launched in the last four quarters.
Among the new ATM programs announced since June 1, multifamily REIT UDR Inc. announced the largest ATM program Aug. 1, at $768.6 million. Equinix Inc. and Alexandria Real Estate Equities Inc. both ranked second, announcing separate $750 million equity distribution agreements Aug. 4 and Aug. 21, respectively.
Forty-one sales agents were involved in the ATM programs announced year-to-date as of Sept. 1, with Merrill Lynch Pierce Fenner & Smith Inc. ranking first, underwriting 23 programs. Jefferies LLC and Wells Fargo Securities LLC followed next, contributing to 17 and 16 programs respectively. Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC tied for the fourth spot, underwriting 14 ATM programs apiece.
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