Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

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 swallowed them up. Most of the issuers' shares have traded at higher prices than before their stock offerings, as evidenced by the 13.5 percent increase in a widely followed REIT price index.

Some companies have used the market's hospitality to build up war chests.

Simon Property Group was first to test the unsecured debt market last March when it priced a $650 million issue to yield 10.75 percent. Since then, the market has thawed substantially. Simon tapped the market again in August, pricing a $500 million issue at a yield of 5.46 percent. The company has also raised $1.7 billion of equity through the sale of common shares.

The company has amassed a nearly $7 billion war chest of cash and...


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Data Digest







Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4





cppichart FP





Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4