REITs are buying US properties at a steady clip, but selling less

SL Green remains outlier, but is spending big on share buybacks

TRD New York /
Oct.October 24, 2017 12:20 PM

From left: 16 Court Street, 1515 Broadway, Marc Holliday and One Worldwide Plaza

Listed real estate investment trusts are acquiring U.S. properties at a steady clip, but they’re selling less than they did last year.

Listed REITs bought $44.6 billion worth of assets so far this year through Oct. 23, according to data from Real Capital Analytics, the Wall Street Journal reported. That’s pretty much in line with the $47.9 billion worth of assets they bought in 2016.

But on the sales side, there’s a wider gap. Listed REITs sold $46.7 billion in assets so far this year through Oct. 23, compared to $71 billion for the full year 2016, according to RCA.

REITs have to deal with the extra challenge of deploying the proceeds from sales quickly, which can make them hesitant to sell because of a lack of attractive assets to buy.

“The question is, where are they going to invest the capital?” Sandler O’Neill and Partners managing director Alexander Goldfarb said.

One exception is SL Green Realty, which has been active selling assets like 16 Court Street in Brooklyn and negotiating to sell a stake in 1515 Broadway. The REIT also purchased a 49 percent stake in One Worldwide Plaza with RXR Realty in a deal valuing the building at $1.73 billion.

SL Green spent around $102 million during the third quarter buying back shares from a previously announced $1 billion share repurchase plan, bringing the total buyback figure to $350 million. [WSJ]Rich Bockmann


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green snags private-equity firm at One Vanderbilt

SL Green snags private-equity firm at
One Vanderbilt

SL Green’s locks in big bank lease at Hudson Yards redevelopment site

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

Clockwise from left: 707 Eleventh Avenue, One Vanderbilt, SL Green chairman and CEO Marc Holliday and 410 Tenth Avenue (Credit: Google Maps, SL Green, Hines)

SL Green snaps up West Side office property

Boston Properties CEO Owen Thomas (left), Shearman & Sterling's David Beveridge, and 599 Lexington Avenue (Credit: Wikipedia)

Boston Properties inks big renewal with law firm at 599 Lex

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

arrow_forward_ios
Loading...