REITs Rebound: 2024 Capital Market Comeback

[Sanjeev Advani]

Public REITs have seen a strong return to capital markets in 2024, raising $64.9 billion by Q3. Driven by favorable interest rates and stock market performance, debt issuance has been the main capital driver. Retail and data center REITs lead, with Realty Income and Digital Realty Trust among top fundraisers.

While REITs raised significant capital, property acquisitions have slowed, with more sales than purchases recorded. Lower interest rates, however, are expected to keep debt issuance attractive, while a rise in REIT stock prices could boost equity offerings. Positive market conditions and recent IPOs mark a new chapter for REIT growth in the coming year.