S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

Landlords are expecting attractive deals in single-family rentals as homebuilders could see consumer demand fall due to increasing mortgage rates, according to a report from Bloomberg News.

Potential sellers, including local and regional builders, are already reaching out to landlords like American Homes 4 Rent and Kinloch Partners, the news outlet said.

American Homes expects builders to eventually offer discounts to avoid the costly piling of inventory, among other things. CEO David Singelyn said his company has a significant amount of cash and funds ready to take advantage of the opportunity.

Homebuyer budgets were up just 0.3% year over year in the U.S. in the three months ending April 30, the slowest growth rate since June 2020, according to an analysis from real estate brokerage Redfin Corp.

CHART OF THE WEEK: US REIT at-the-market offering activity falls in Q1

⮞ At-the-market offering activity by U.S. real estate investment trusts fell in the first quarter to roughly $3.35 billion, about half of what was raised in the final quarter of 2021, according to data compiled by S&P Global Market Intelligence.

⮞ Realty Income Corp. sold over 10 million shares for gross proceeds of $660.2 million, the highest capital raised by any REIT through its at-the-market program during the period.

⮞ The single-tenant retail REIT sector topped at-the-market fundraising in the first three months of 2022.

M&A

* Industrial real estate giants Prologis Inc. and Duke Realty Corp. agreed to merge in an all-stock deal valued at approximately $26 billion, including debt, at a time when the industry is facing a prospect of slowing demand.

* Choice Hotels International Inc. will buy the franchise business, operations and intellectual property of Radisson Hotel Group Americas for about $675 million. The transaction includes more than 68,000 rooms across 624 hotels.

Apartment acquisitions

* Dalan Management Associates and KKR & Co. Inc. completed the acquisition of a 13-story apartment property in downtown Brooklyn, N.Y., from Bruman Realty LLC for $225 million, Commercial Observer reported. The 260 Gold St. multifamily property spans 261,035 square feet and has 286 units.

* Starwood Capital Group Management LLC bought the 460-unit Luxury Apartments at Foxwood in Raleigh, N.C., from Mount Auburn Multifamily for more than $165 million, the Triangle Business Journal reported, citing Wake County deed records.

* A joint venture comprising Dermot, USAA Real Estate Co. and PGGM acquired a two-building luxury apartment property in Brooklyn for $142.3 million, Commercial Observer reported, citing unnamed sources. BentallGreenOak sold the 271-unit asset called The Addison.

US REIT average short interest rises in 2nd half of May

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