REITs are primed to step up acquisition activity

11/4/2010 | CoStar Group

REITs are poised to begin a new phase of acquisitions, based on common themes emerging from third-quarter earnings calls, CoStar debt strategist Mark Fitzgerald said. Capital raising last year was to shore up balance sheets and pay down debt. This year, REITs returned to the capital markets to raise funds with an eye toward acquisitions, he says. "In 2009, public REITs raised almost $35 billion via the public markets, yet net acquisitions were negative $2.6 billion. However, in 2010 (through September), REITs raised another $32.5 billion in the public markets, with net acquisitions of almost $15 billion," Fitzgerald said.

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