Beginning with S&P Global Market Intelligence's second-quarter 2019 analysis of at-the-market program usage by real estate investment trusts, Market Intelligence included forward at-the-market sales settled during the respective quarter as part of the total capital raised. Forward sales conducted during the quarter but not yet settled as of quarter-end were not included in the quarterly total. Because of this methodology change, prior quarterly totals presented in this article may not match historical articles published by Market Intelligence.
At-the-market program usage by US equity real estate investment trusts increased significantly in the fourth quarter of 2022.
In total, US REITs raised $5.86 billion through common stock at-the-market (ATM) programs in the quarter, marking a 37.7% increase over the prior quarter but down 12.0% from the $6.66 billion raised in the fourth quarter of 2021, according to S&P Global Market Intelligence data.
Realty Income, Welltower raise most capital
In total, 34 REITs utilized their common stock ATM programs during the period.
Realty Income Corp. raised the most capital through an ATM program in the quarter. During the quarter, the net-lease REIT sold 19,851,479 shares on a forward basis and issued 33,102,142 shares to settle existing forward sale agreements, raising almost $2.18 billion of gross proceeds. As of Dec. 31, 2022, Realty Income had another 6,744,884 shares of common stock subject to forward sale confirmations through its ATM program that had not yet been settled.
Healthcare REIT Welltower Inc. followed next, raising $1.49 billion in gross proceeds after settling all of its remaining forward sale agreements at 17,964,603 shares.
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Office REIT Alexandria Real Estate Equities Inc. settled 4.2 million shares of its outstanding forward sale agreements during the quarter, raising net proceeds of $737.4 million.
Healthcare-focused Healthpeak Properties Inc. and industrial REIT Rexford Industrial Realty Inc. also settled outstanding forward sale agreements during the quarter. Healthpeak Properties raised $308.0 million and Rexford Industrial Realty raised $189.3 million in net proceeds.
Single tenant REITs most prolific capital raisers
By property sector, single tenant retail REITs raised the most capital through ATM programs in the fourth quarter of 2022. In that group, Realty Income topped the list, followed by National Retail Properties Inc., which raised gross proceeds of $121.7 million through its ATM program. Four Corners Property Trust raised $75.3 million and Spirit Realty Capital Inc. raised $63.9 million in net proceeds.
The healthcare sector placed second, raising more than $1.97 billion in aggregate. After Welltower and Healthpeak Properties, Physicians Realty Trust raised $74.3 million through its ATM program, while CareTrust REIT Inc. raised $48.1 million.
