U.S. REITs Emphasize Debt Issuance as Key Funding Source in Q2 2025
U.S. Real Estate Investment Trusts (REITs) raised $22.5 billion through secondary debt and equity offerings in the second quarter of 2025, according to a report from Nareit. The bulk of the capital—$16.3 billion—originated from debt offerings. Common equity offerings contributed $6.1 billion, while preferred equity offerings accounted for $100 million.
For the first half of 2025, REITs have secured a total of $39.7 billion in capital. This includes $25.2 billion from secondary debt offerings, $8.7 billion from secondary common equity offerings, and $800 million from secondary preferred equity offerings.
Debt issuance continues to be the dominant source of funding for REITs, a trend that has persisted in recent years. In 2024, REITs raised $48.1 billion from secondary debt offerings, up from $29.4 billion in 2023. In the second quarter of 2025, the average yield to maturity for unsecured REIT debt offerings was 5.5%, while the average for the first half of the year stood at 5.8%.
