REIT Capital Markets Activity Signals a Change in Sentiment

Q2 2024, United States REITs raised $16.6 billion through secondary offers, predominately from $12.5 billion in debt and an additional $4.1 in equity [1]. REIT capital markets activity represents an important signal about the market’s appetite for real estate exposure.

During the second quarter there were no REIT IPOs, yet in July, Lineage Logistics completed a significant $5.1 billion REIT IPO. Additionally, Blackstone completed a $9.2 billion merger with Apartment Income REIT.

 Overall, there has been a total of $272 billion of public REIT mergers and acquisitions since 2019.

 
Despite reduced equity issuance, debt issuance saw an uptick, culminating in $25.4 billion YTD. Acquisition trends favored the industrial, retail, and data center sectors. The financial activity indicates robust investor interest and a rise in strategic consolidation within the REIT market.

[1]: https://www.reit.com/news/blog/market-commentary/reits-raised-166-billion-through-secondary-offerings-2024q2