Wednesday, 23 December 2009

REITs Raised $28.3Bln of Common Equity, Unsecured Debt in 2009

Commercial Real Estate Direct Staff Report

Publicly traded REITs raised a total of $28.3 billion this year by selling unsecured debt and common equity.

The total includes 30 unsecured notes issues totaling $11.4 billion and 59 stock offerings totaling $17.2 billion.

That compares with last year, when REITs raised only $16 billion of unsecured debt and common equity.

Most REITs used the capital they raised to address upcoming maturities.

At the end of last year, for instance, the 50 largest REITs by total market capitalization faced a whopping $20.4 billion of debt maturities in 2009. As of the end of September, those REITs had whittled that down to a more manageable $2 billion. The latter doesn't include the $3.6 billion of maturities that General Growth Properties faced this year. The company, as part of a restructuring plan, has reached agreements to extend some $10.3 billion of its debt.

And despite the fact that the stock offerings averaged 23.41 percent dilution to existing shareholders, investors...

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