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 continued to ramp up in the third quarter of 2023.
US REITs raised more than $5.11 billion in aggregate during the third quarter, a 7.8% increase from the $4.74 billion raised the quarter prior and a 20.2% increase year over year.
The recent quarter marks the fourth-largest quarter by proceeds raised through at-the-market (ATM) programs.
Welltower sells nearly $1.94 billion worth of common stock
Healthcare REIT Welltower Inc. collected the most proceeds through its ATM program in the third quarter. During the quarter, the REIT sold more than 24 million shares of common stock for nearly $1.94 billion in gross proceeds.
Single tenant retail REIT Realty Income Corp. sold 23.5 million shares under forward sale agreements in the third quarter, while also settling just over 15 million shares of its forward sales for $883.0 million in gross proceeds. As of Sept. 30, Realty Income had another 13.3 million shares of common stock subject to forward sale agreements that have been executed but not settled. The outstanding forward sale agreements represent $749.3 million in net proceeds, and Realty Income expects to fully settle them by 2023 year-end.
Cold-storage-oriented Americold Realty Trust Inc. placed third, selling 13,244,905 shares of common stock through its ATM program for $418.9 million in gross proceeds.
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Datacenter REIT Digital Realty Trust Inc. also settled 3.5 million of its outstanding forward sale agreements during the quarter for $336.0 million in net proceeds.
Other REITs that raised more than $100 million through their ATM programs in the third quarter included CareTrust REIT Inc., Agree Realty Corp., Gaming & Leisure Properties Inc. and EastGroup Properties Inc.
While no shares were settled in the recent quarter, casino REIT VICI Properties Inc. sold 7,843,352 shares on a forward basis through its ATM program at $30.85 apiece for $233.6 million in total gross proceeds, while datacenter REIT Equinix Inc. sold 294,579 shares representing approximately $231.6 million in net proceeds.
By property sector, healthcare REITs raised the most capital through their ATM programs in the third quarter, at about $2.38 billion in aggregate. In addition to Welltower, CareTrust REIT raised $319.9 million in net proceeds during the quarter, while Ventas Inc. collected $84.8 million of gross proceeds and Community Healthcare Trust Inc. sold $17.8 million worth of common stock during the quarter.
