Between April 2012 and May 2013, aggregate outstanding equity REIT term loans jumped from $18 billion to $30 billion. General Growth Properties took out the largest term loan in 2013, with its $1.5 billion loan originated April 26.
Equity REIT term loan usage has increased steadily over the last 18 months. As of May 10, U.S. equity REITs had 138 term loans outstanding, for a total of $30.26 billion. This is a significant uptick from the 85 loans valued at $18.44 billion outstanding as of April 2, 2012, or the 53 loans valued at $9.84 billion outstanding as of Nov. 15, 2011.
The office sector led the list of outstanding loans by sector as of May 10 with 24 loans valued at $6.82 billion outstanding. Alexandria Real Estate Equities Inc. boasts the largest term loan of the office group, with its $750 million loan issued Feb. 16, 2011. In December of the same year, the company closed on a syndicated term loan for a further $600 million. The latter was intended to be used to reduce the balance of its unsecured line of credit. The two term loans are due in 2015 and 2016, respectively.
Referenced Tickers: Chambers Street Properties, ARE, GGP, Landmark Apartment Trust Inc., O, Inland American Real Estate, GTY, STAG, GRT, HCN, KBS REIT II Inc., EQR
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