The year-to-date equity raise for Delaware statutory trust offerings was more than $4.59 billion as of Oct. 31, 2024, a 16.9% bump from the previous end-of-month $3.93 billion – according to data from Mountain Dell Consulting.
This was inclusive of the significant $573.4 million raised throughout October, a staggering 32.5% increase compared to September’s $432.6 million – the latter of which had been a 12.3% decrease from August’s fundraise.
“We anticipate $5.5 billion of equity raised through year-end based on full-cycle equity coming back into new programs as well as regular transaction volume,” said Taylor Garrett, president of Mountain Dell Consulting.
This is a fairly significant rise from last month’s $5.2 billion year-end estimate by Mountain Dell and would ultimately be more than a 9% increase in equity raised compared to the low-end of the range $5.04 billion amassed in 2023.
In 2021, for context, DST sponsors raised $7.2 billion. This record year was surpassed a year later when DSTs attracted approximately $9.2 billion in 2022.
With approximately $834.2 million in total equity raised (18% of the market share), Ares Real Estate Exchange was far and away the leader in sales year-to-date. According to Mountain Dell, other sponsors rounding out the top five and representing the highest percent of market share through the end of October 2024 were:
JLL Exchange with a year-to-date tally of approximately $511.3 million (11%);
Inland Private Capital Corporation with a year-to-date tally of approximately $476.6 million (10%);
ExchangeRight Real Estate with a year-to-date tally of approximately $306.2 million (7%); and
Hines Real Estate Exchange with a total equity raise of approximately $276.6 million (6%).
The highest offering amounts by programs added in October include HREX 5 DST, a retail asset sponsored by Hines and seeking to raise more than $201 million, and Boston Logistics Property DST, an industrial asset sponsored by Net Lease Capital Advisors and seeking to raise more than $90 million. The latter has raised approximately $77.5 million as of Oct. 31.
As of the end of October, 48 active sponsors were sponsoring 91 programs, according to Mountain Dell. Industrial and multifamily continued to be the most popular asset types, comprising 41% and 25% of all syndicated offerings, respectively.
Located in the Salt Lake City region, Mountain Dell Consulting is a consulting and research firm focused on real estate-oriented investment programs. It has sourced and compiled data on the securitized 1031 exchange market since 2003.
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