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...





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

 

MOODY'S/RCA CPPI

 

cppichart FP

 

 

cmbs2spreads

 

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

 

 

 

REITCafe

  • West Coast Port Slowdown and Industrial REITs
    After nine months of labor negotiations and worsening cargo congestion at West Coast Ports, U.S. Labor Secretary Thomas Perez stepped in this week to help broker a deal between the union and shippers. The work slowdown is affecting the nation’s supply chain. Honda has reported a production slowdown because of parts....
     
  • New REITs Increase Investor Choices in 2015
    Three REIT IPOs in as many weeks could indicate a strong year ahead for new REIT formation. Robust REIT returns during 2014 created momentum for IPO activity. In addition, the market’s favorable reception of the widely-watched Paramount REIT (PGRE) and STORE Capital (STOR) IPOs in late 2014 has encouraged companies to....

  • REITs Start 2015 Strong
    One month in to 2015, REITs continue to outperform the broader markets. During January, the FTSE NAREIT All REIT Index total return measured 5.59 percent, compared to -3.00 percent for the S&P 500, -3.69 percent for the DJIA, and -2.13 percent for the NASDAQ. REITs are attractive to investors for a...
warehouse-backstage