U.S. REITs raised $12.5 billion from secondary debt and equity offerings in the fourth quarter of 2024. $7.3 billion came from debt, $251 million was raised in one initial public offering (IPO), and $5.0 billion came from secondary common and preferred equity offerings.
For the year, REITs raised $48.1 billion from secondary debt issuance, $15.8 billion in secondary equity issuances, and $6.1 billion through three IPOs. In the third quarter of 2024, REITs posted their largest quarterly at-the-market (ATM) capital raising total of $7.2 billion. For further details on the current or prior year, Nareit’s historical capital offerings summary can be found here.
One acquisition was announced in the fourth quarter for a total of $3.7 billion. M&A activity took a breather in 2024 from prior years, with just two deals announced or completed totaling $12.9 billion. That compares with 2023, when acquisitions of publicly-listed U.S. REITs totaled $44.4 billion. Of the $272 billion in public REIT mergers and acquisitions from 2019–2024, 56% of the transaction value represents deals between listed REITs in the same property sector.
2024 Capital Raising
- Non-ATM equity issuance totals $15.8 billion year-to-date in 2024, with $14.7 billion coming from common equity offerings and $1.1 billion coming from preferred equity offerings. REITs have raised $14.6 billion in ATM offerings in 2024 as of the third quarter. In 2023, REITs raised $19.6 billion through ATM offerings.
- Debt issuance declined to $7.3 billion in the fourth quarter. REITs raised $48.1 billion through secondary debt offerings in 2024, compared to $29.4 billion in 2023. In 2024, the average yield to maturity for REIT unsecured debt offerings was 5.8% with an average spread to similarly dated treasuries of 1.6%.
Mergers & Acquisitions
In 2024, two M&A deals were announced, with a value of $12.9 billion. In 2023, 11 deals to acquire publicly-listed REITs were announced, with a total deal value of $44 billion and 95% of the value reflecting acquisitions by listed REITs. In 2022, 10 deals to acquire publicly-listed U.S. REITs were announced, representing a total deal value of $83 billion. Since the beginning of 2021, deals for 37 REITs have been announced or completed. Of the $225 billion represented by these acquisitions, 81% is attributed to acquisitions by other public REITs.
Property Acquisitions & Dispositions
Property acquisitions for the third quarter totaled $10.7 billion with $8.0 billion in dispositions. In 2023, $70.7 billion in acquisitions and $25.7 billion in dispositions were posted. In the third quarter of 2024, health care, residential, and retail led with acquisitions of $3.1 billion, $1.8 billion, and $1.7 billion, respectively. See Nareit’s T-Tracker for further details.