Non-Traded REITs Consider Multi-Family Portfolio Transactions; VICI Completes Purchase of MGM Growth
S&P Global Market Intelligence offers our top picks of real estate news released throughout the week.
The share of non-traded real estate investment trusts in private apartment transactions in the United States has increased to 10% in 2021, according to Real Capital Analytics. This compares to an average of 3% between 2015 and 2019.
This increase follows record fundraising between January 2021 and November 2021. $32.8 billion raised was more three times more than in 2020, Real Capital Analytics reported, citing data from investment bank Robert A. Stanger.
An increase in non-traded REIT mega-deals involving portfolios of apartments, or even entire companies, could materialize in 2022 as investors find ways to accelerate capital deployment.
CHART OF THE WEEK: Average short interest on US REITs down 12bps in 1st half of April
⮞ According to data compiled by S&P Global Market Intelligence, average short interest on U.S. equity REITs fell 12 basis points in the two weeks to April 14, to 3.0% of shares outstanding.
⮞ The regional shopping center sector remained the most shorted REIT sector, and the Pennsylvania REIT was the most shorted REIT stock as of April 14.
* VICI Properties Inc. finished the $17.2 billion acquisition of MGM Growth Properties LLC. The buyer has an enterprise value of approximately $44.0 billion after completion of the merger.
* Welltower Inc. remains interested in acquiring Healthcare Realty Trust Inc. after its $4.8 billion bid was rejected, Dow Jones Newswires reported May 4, citing people familiar with the matter. Healthcare Realty agreed in February to merge with Healthcare Trust of America Inc. in an approximately $10 billion cash and stock transaction.
Real estate removals
* Boston Properties Inc. has agreed to buy an office building in Seattle for a gross purchase price of approximately $730 million. The 37-story Madison Center property spans approximately 760,000 square feet.
* Host Hotels & Resorts Inc. has sold the Sheraton-New York Times Square hotel in Manhattan, NY, for $373 million.
* A subsidiary of Hyatt Hotels Corp. sells The Confidante-Miami Beach hotel in Florida to Sunstone Hotel Investors Inc. for $232 million. The buyer intends to rename the property to Andaz Miami Beach.
* A joint venture between Bain Capital and Barbers Partners LLC seeks to develop approximately 15 Class A cold stores under the Chill Storage brand worth $500 million.
NAV Monitor: US equity REITs trade 8.9% off end-April NAV
REIT Replay: REIT stock prices fall in the week ended April 29