REIT Secondary Offering Activity Remains Strong

It’s mid-February, and U.S.-based publicly-traded REITs have already issued more than $1 billion through secondary equity offerings, according to SNL Financial.

It’s mid-February, and U.S.-based publicly-traded REITs have already issued more than $1 billion through secondary equity offerings, according to SNL Financial.

The activity not only illustrates ongoing investor interest in REITs, but also indicates that REITs are continuing to clean up their balance sheets and to look for capital to grow their businesses.

For the past five years, there has been an average of $15.4 billion annually in REIT secondary offerings, also known as follow-on offerings, according to SNL Financial, a Charlottesville, Va.-based analyst firm. “That volume shows pretty consistent investor demand,” says Jason Lail, a manager in SNL Financial’s real estate group. “The market has traditionally been accepting of those offerings.”

Read the full article on National Real Estate Investor.

 

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