CHARLOTTESVILLE, VA-One well-known strength of REITs is their ability to tap capital markets for funding with ease; a lesser-known trait is the multitude of vehicles available to them to do so. At-the-market offerings are one example. Once relatively rare, REITs have been using these hybrid structures with growing frequency.

Year to date, according to SNL Financial figures, REITs have sold approximately $1.4 billion in common equity through such programs. That amount is roughly the same as the previous quarter, SNL analyst Andy Pierce tells GlobeSt.com. “Overall, it's been a pretty steady pace.”

Still, some quarter-over-quarter growth is evident. Twenty-eight equity REITs reported offering activity in Q2; last quarter it was 21. The number of announced deals is also up year-over-year--25 REITs announced new programs year-to-date, compared with 23 REITs in 2011. AvalonBay Communities recently announced what SNL said was the largest offering program since 2010--a $750-million program in early August, after exhausting a $500-million program the month before. Another REIT that has been active is Camden Property Trust, which raised more than $170 million in gross proceeds and an additional $65 million from quarter end through Aug. 2.

There are a number of reasons for the popularity of ATM programs now, Pierce says, starting with their ability to perform in periods of volatility. “If the market is volatile, a REIT might find it difficult to complete a traditional follow-on offering," he says. "But an ATM would be easier to complete.”

There is also the flexibility of the structure that appeals to REITs—basically it allows them to raise capital when prices are favorable. The Camden offering was an example of that, Pierce says.