REITs Raise Nearly $9B YTD

CHARLOTTESVILLE, VA—One reason why investors and analysts are fond of REITs is their ability to tap equity and debt markets with ease. This year's capital-raising activity, therefore, should make this crowd very happy: year to date through Jan. 31, US equity REITs have raised a total of $8.67 billion, according to SNL Financial. That is approximately $3.54 billion more than the $5.13 billion raised during the same period in 2014.

So far, capital raised through common equity has totaled $3.18 billion this year. During the same period in 2014, REITs raised $1.52 billion from common equity offerings. Some of the top transactions in 2015 included InfraREIT's IPO, which was worth $529 million; Rexford Industrial Realty, which raised $184 million in an offering; and a $120.8 million offering completed by Chatham Lodging Trust.

Senior debt offerings generated $5.41 billion, marking a year-over-year increase of $1.8 billion as compared to the same period in 2014.

Select Income REIT raised the most during this period through four senior debt offerings totaling $1.45 billion. It was followed by W. P. Carey, which raised $450 million.

Capital raised through preferred equity offerings came to $50 million. This was a single transaction by CorEnergy Infrastructure Trust, with no comparable offerings made during the same period in 2014. Subsidiary preferred partnership interest issuances generated $20 million in 2015.  Again, this activity was generated by a single company, Sun Communities, with nothing to compare it to for 2014.

Viewing the numbers through the filter of asset class, healthcare REITs were the top fund raisers, at $3.08 billion. Diversified REITs and retail REITs followed in second and third place, respectively, at $2.49 billion and $1.24 billion.