United States equity real estate investment trusts raised $19.8 billion in the third quarter of 2026 through secondary debt and equity offerings, matching capital totals from the second quarter, according to data from Nareit reported by Connect CRE. The total brought year-to-date capital raised by REITs to $65.7 billion, which includes at-the-market fundraising through the second quarter. That compares to $67.9 billion raised year-to-date through the third quarter of 2025.
Debt offerings made up the vast majority of third-quarter volume, accounting for $14.9 billion of the $19.8 billion total. Common equity offerings brought in $4.7 billion, while preferred equity accounted for $173 million. Following an active first half of 2026, the REIT initial public offering market cooled entirely, recording zero offerings during the third quarter.
Borrowing costs and transaction totals
While REITs continued to access liquidity through debt issuance, borrowing costs moved higher across 2026. Nareit reported that the weighted average coupon on REIT debt offerings reached 5.4% in the third quarter, up from 4.7% in the first quarter of the year.
Mergers and acquisitions activity also generated transactions during the quarter, as Connect CRE noted. Three deals involving public United States REITs were announced, totaling $8.6 billion. Public-REIT to public-REIT transactions represented $3.6 billion, or 42%, of that announced volume. In addition, sponsors announced one take-private transaction valued at $4.9 billion.
What it changes for a closing
For closing teams managing financings and acquisitions involving REIT borrowers, higher coupon rates alter interest carry calculations and debt service coverage tests. A weighted average coupon rising from 4.7% to 5.4% requires transaction teams to verify underwriting thresholds against elevated debt service obligations. Heavy reliance on debt offerings over equity issuance also directs legal teams to scrutinize corporate leverage limits and existing bond indentures when structuring asset-level loans. For closing tables handling public M&A or take-private transactions, the multi-billion-dollar deal scale places heightened focus on debt assumption documentation, pay-off letters, and regulatory condition satisfaction.