Dzmitry Dzemidovich
REITs started in 2023 with eight equity offerings in January, raising a total of $4.91 billion in capital, based on a report by the National Association of Real Estate Investment Trusts.
Capital raised in the month January was down ~50% y/y, but significantly higher than the $250 million raised in December 2022.
REITs have raised a total of $1.84 billion through a common stock offering and $570 million through a preferred stock offering. Creative industry attributes (IIPR) announced a secondary offering of 2 million shares during the month.
A total of $2.5 billion was raised through secondary debt during the month.
Fundraising activities fell to a seven-year low last year, with the industry raising just $45.78 billion in 2022.
Only one REIT went public on the stock exchange through an IPO, raising a total of $1 million.
Equity REIT saw Their profits plummeted in 2022, dropping 27.46% in value. The decline was the sharpest since the great financial crisis.
This result from the Federal Reserve’s dramatic interest rate hikes that made borrowing more expensive and repurchase activity slowed.
However, investors are holding onto their shares.
REIT Wheeler Retail Real Estate Investment Trust (WHLR) did not receive enough Series D preferred shares to be bid to complete the exchange offer.
An increase in acquisitions could lead to more fundraising in the REIT sector.
