The opportunity for U.S. equity real estate investment trusts in equity offerings to close in 2022, and experts aren’t willing to bet on a speedy reopening. Only 101 services in 2022 raised $41.52 billion in 2022. After breaking records offerings in 2021, in which the company raised $133.59 billion, the 2022 market has cooled severely.
Most of the capital raised in 2022 came from common stock offerings at $28.66 billion, while senior debt offerings accounted for the remaining $12.86 billion, based on Latest report from National Association of Realtors.
The Casino REIT VICI Property (VICI) has raised the most capital year-to-date through several senior debt and common stock offerings totaling $8.73 billion, followed by Real Estate Income (Umbrella) at $3.76 billion.
Equity REIT returns saw their steepest declines last year since the great financial crisis, with the Real Estate sector falling 28.45%, while the underlying Real Estate SPDR ETF (XRE) fell 28.72% from the overall S&P 500 drop of 19.4%.
The entire real estate sector experienced a difficult year throughout 2022 as rising inflation and interest rates weighed on the sector. REITs are under pressure after a series of the fastest rate hikes in recent history and expect uncertainty to continue for at least the second half of 2023.
