REITs Report Record FFO in Q1; North American Renewable Energy Companies Move Toward Net Zero Goals


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Funds from U.S. real estate investment trust operations in the first quarter hit a record high at more than $18 billion, a 30.9% increase from a year ago, according to the Total REIT Industry Tracker report. Series of Nareit.

Nareit is the US-based trade association for REITs and publicly traded real estate companies.

Sectors that have been hit hard during the pandemic have shown strong improvement in earnings, such as independent retail, which grew 37.3% in the quarter, and accommodation/resorts, which rose 29.7%, according to the report.

The self-storage, industrial, infrastructure, residential, data center, retail and specialty sectors recorded FFOs that exceeded pre-pandemic levels. Sectors where FFOs are below pre-pandemic levels include healthcare, office, miscellaneous services, and lodging/resorts.

CHART OF THE WEEK: Net zero progress of North American renewable energy companies

⮞ Large publicly traded real estate companies in North America are making progress in the transition to net zero.

⮞ Prologis Inc., which is the world’s largest industrial REIT by market capitalization, hit its initial net-zero targets ahead of schedule, company officials said.

⮞ SL Green Realty Corp., Kimco Realty Corp. and Equity Residential were among theother real estate companies that have stepped up their net zero targets after hitting their initial targets.

Real estate offers at the best price

* Boston Properties Inc. has completed the approximately $730 million acquisition of the approximately 760,000 square foot Madison Center office building in Seattle.

* Cortland Partners LLC is paying more than $1 billion to buy four apartments in Arlington, Virginia.

* Partners Group Holding AG purchased a US portfolio of single-family rental homes worth $1 billion subsidiaries of Fortress Investment Group LLC and Kairos Living.

Mergers & Acquisitions

* MGM Resorts International has completed the approximately $1.63 billion acquisition of The Cosmopolitan of Las Vegas hotel and casino business from Blackstone Inc. Stonepeak Partners LP, Cherng Family Trust and Blackstone Real Estate Income Trust Inc., the group that bought the real estate assets, agreed to lease The Cosmopolitan to MGM for 30 years, with three 10-year renewal options.

* Blackstone Real Estate Income Trust has completed the $3.7 billion acquisition of Resource REIT Inc., a multi-family company.

* Swedish private equity firm EQT AB (publ) is buying Redwood Capital Group LLC, a Chicago-based manager of core-plus and value-added residential investments. Redwood will be combined with EQT’s EQT Exeter platform multi-family group.

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