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In the 3Q 2011, non-listed REITs raised over $2.1 billion in equity capital. The capital raise was dominated by the top ten non-listed REITs, which raised over 80% of the total non-listed REIT equity.

Year-to-date, non-listed REITs have raised over $6.6 billion compared to $33.7 billion raised by listed equity REITs through initial public offerings and secondary offerings (according to NAREIT). Collectively, non-listed REITs have now raised over $60 billion in cumulative equity capital compared to the $353 billion market capitalization of listed equity REITs as of 9/30/11 (according to NAREIT). The top ten fundraising non-listed REITs are highlighted in the table below.

Top Ten Equity Raises (in $millions)

3Q 2011

2011 YTD

American Realty Capital Trust

$ 268

$ 1,138

Cole Credit Property Trust III

$ 339

$ 936

Behringer Harvard Multifamily REIT I

$ 260

$ 557

CB Richard Ellis Realty Trust

$ 194

$ 466

Corporate Property Associates 17 – Global

$ 129

$ 435

Apple REIT Ten

$ 43

$ 428

Hines Global REIT

$ 116

$ 393

Industrial Income Trust

$ 105

$ 319

Healthcare Trust of America

$ 19

$ 268

CNL Lifestyle Properties

$ 21

$ 250

With the strong equity raise and healthy credit markets, non-listed REITs were very active in the transaction markets, acquiring $3.8 billion in commercial real estate properties in the 3Q 2011 and $8.8 billion in transactions year-to-date 2011. Non-listed REITs represented 6% of all commercial real estate transactions in 2011, and several non-listed REITs, led by Cole Credit Property Trust III and American Realty Capital Trust, are among the largest acquirers of commercial real estate in the United States.

Top Ten Acquisitions (in $millions)

3Q 2011

2011 YTD

Cole Credit Property Trust III

$ 969

$ 1,800

American Realty Capital Trust

$ 214

$ 961

Wells REIT II

$ 0

$ 610

Corporate Property Associates 17 - Global

$ 231

$ 549

KBS REIT II

$ 136

$ 534

Industrial Income Trust

$ 94

$ 523

Inland Diversified Real Estate Trust

$ 38

$ 449

CB Richard Ellis Realty Trust

$ 54

$ 404

Hines Global REIT

$ 153

$ 370

Inland American Real Estate Trust

$ 276

$ 340

Dividend yields among effective non-listed REITs, which are open to new investors, rose slightly from 6.41% in the 2Q 2011 to 6.43% in the 3Q 2011. The dividend yields of closed non-listed REITs declined slightly from 5.21% in the 2Q 2011 to 5.17% in the 3Q 2011. Closed non-listed REITs experienced many dividend reductions over the past few years due to declining operations. These dividend reductions are the reason for the lower dividend yields of closed non-listed REITs. The dividend yields of non-listed REITs compare favorably to the 4.1% dividend of equity listed REITs as of 9/30/11 (according to NAREIT).

The leverage of non-listed REITs has remained relatively steady with the leverage of effective non-listed REITs at 35% in the 3Q 2011 and closed non-listed REITs at 40% in the 3Q 2011. The leverage ratios reflect the total debt against the total cost of real estate assets. Non-listed REIT leverage ratios are similar to the 38% leverage ratio of listed REITs as of 9/30/11 (according to NAREIT). NAREIT calculates the leverage ratio for listed REITs as total debt against market capitalization which differs from the total cost of real estate assets.

Source: Non-Listed REITs Report Active Third Quarter