NEW YORK CITY-As REITs continue to fight headwinds, make new acquisitions and recycle assets, the sector is still facing challenges—especially in terms of raising capital, as outlined in a new report by Ernst & Young LLP.
The study, entitled 2012 Global Perspectives, says that the only country outside the US in which REITs had the ability to raise equity through secondary offerings was Japan during Q1. The report also found that IPOs were wholly an American REIT phenomenon, with US REIT formation accounting for 75% of the $2.4 billion in IPO activity in six markets, including Australia, France, Japan, Singapore, UK and US.
The US – which remains the largest of the six markets – had a total market capitalization of approximately $632 billion, followed by Australia, with a total cap of $81 billion. On the return front, the US clocked in at 10.6%, ahead of the Aussies at 8.1% but behind Japan at 20.4%. However, the US dominated the five other markets over a three-year return period at 61%, more than double posted by the next best market, Singapore at 28%.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
