Three U.S. REITs had gone public in 2014 as of April 25, raising an aggregate $747.2 million. This matches the number of IPOs completed within the same period in 2013; by year-end 2013, U.S. REIT IPOs totaled 13. One out of the three companies outperformed the SNL US REIT equity index as of April 25 since the companies’ respective IPO completions, with total return spreads ranging from negative 5.18 percentage points to 4 percentage points.
CBS Outdoor Americas Inc. (REIT) was the first U.S. REIT to complete an IPO in 2014, on March 27. It raised $644 million, which accounts for more than 86% of the total value raised by the three REITs. CBS Outdoor invests in outdoor advertising, placing it on the roster of specialty REITs. Between March 27 and April 25, it posted a total return value of 7.18%, besting the SNL US REIT Equity index by 4 percentage points — the only company among the three new REITs that outperformed the index since its IPO completion.
The second U.S. REIT to complete an IPO in 2014 was Bluerock Residential Growth REIT Inc., with a $50 million initial offering March 28. Between its IPO date and April 25, it had a total return of negative 2.72% — more than 5 percentage points below the SNL US REIT Equity index.
Farmland Partners Inc. was the third REIT to complete its IPO in 2014, joining Gladstone Land Corp. as one of the first farmland REITs in the U.S. The company completed an initial offering of $53.2 million on April 10. Between that date and April 25, it posted a negative 2.11% return, 3.75 percentage points below the SNL US REIT Equity index.
One company, office-focused ETRE REIT LLC, has announced its intention for an IPO in 2014, joining three other pending U.S. REIT IPOs announced since 2013.
City Office REIT Inc. completed its IPO on April 14 and raised a total of $72.5 million through that offering. The company is headquartered in Canada, but trades only on the NYSE and owns only U.S. properties, so it will be included for comparison purposes. City Office REIT has provided investors with a total return of negative 0.24% since IPO completion, which is 2 percentage points lower than the SNL US REIT Equity index total return for that same period.
Keep reading the full report and analysis here: http://www.snl.com/InteractiveX/Article.aspx?cdid=A-27935209-12075
Referenced Tickers: ESRT, RPAI, IRT, LAND, AAT, QTS, INN, REXR, CONE, AMRE, RLJ, AVIV, ARPI, FPI, DOC, SBY, CTT, SRC, ARCP, AMH, CIO, APTS, ETRE REIT LLC, AHH, STAG, SIR, BRX, WHLR, BRG, CBSO.REIT
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