The window for U.S. fairness actual property funding trusts capital choices slammed shut in 2022, and consultants are unwilling to wager on a swift reopening. There have been simply 101 choices in 2022 that raised $41.52B in 2022. Following record-breaking choices in 2021, the place the corporate raised $133.59B, the 2022 market cooled in an enormous method.
The vast majority of capital raised in 2022 got here by way of frequent fairness choices at $28.66B, whereas senior debt choices accounted for the remaining $12.86B, in accordance with the most recent report from the Nationwide Affiliation of Realtors.
On line casino REIT VICI Properties (VICI) attracted essentially the most capital year-to-date by way of a number of senior debt and customary inventory choices totaling $8.73B, adopted by Realty Earnings (O) at $3.76B.
Fairness REIT returns noticed the steepest decline final 12 months for the reason that nice monetary disaster, with the Actual Property sector falling 28.45%, whereas underlying Actual Property Choose Sector SPDR ETF (XLRE) fell 28.72% towards broader S&P 500 index decline of 19.4%.
The true property sector in total has seen a tough 12 months all through 2022 as inflation and rate of interest hikes weighed on sector. REITs have been underneath strain after the quickest sequence of interest-rate hikes in latest historical past and count on uncertainty to proceed by way of not less than half of 2023.
