Total proceeds through green bond issuance by US equity real estate investment trusts picked up in 2024 compared with the year prior. However, issuance remained limited to a handful of companies.

Five REITs issued green bonds in 2024, aggregating $4.25 billion in gross proceeds, according to an S&P Global Market Intelligence analysis. The green bond proceeds accounted for 8.1% of total bond proceeds for the REIT sector.

The 2024 total is more than double the $1.60 billion raised by the sector through green bonds the year prior but is down significantly from the record $14.38 billion raised in 2021.

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Equinix raises $1.88B through green bonds in 2024

Datacenter REIT Equinix Inc. raised the most proceeds through green bond offerings in 2024, totaling roughly $1.88 billion across three euro-denominated offerings.

On Aug. 28, 2024, the firm completed the sale of €600 million of green bonds due 2033. The two additional offerings came Nov. 13, 2024, with the sale of €650 million of green notes due 2031 and €500 million of notes due 2034.

Another datacenter REIT, Digital Realty Trust Inc., followed next with the sale of €850 million of green notes due 2033 in a transaction that closed Sept. 13, 2024.

Hotel REIT Host Hotels & Resorts Inc. sold $600 million of green bonds due 2034 on May 7, 2024.

Single-family rental REIT American Homes 4 Rent closed its $600 million offering of green bonds due 2034 on Jan. 23, 2024.

Lastly, office REIT Empire State Realty Trust Inc. issued $225 million of green bonds in a three-tranche private placement April 10, 2024. The issuance consisted of $155 million of 7.20% notes due June 2029, $45 million of 7.32% notes due June 2031 and $25 million of 7.41% notes due June 2034.

Twenty-five US REITs have issued green bonds since 2018.

Digital Realty remained the top issuer of green bonds during the time period, with more than $7 billion in aggregate gross proceeds. Digital Realty sold an additional $500,000 of green bonds in 2015.

Equinix ranked second with nearly $6.77 billion in gross proceeds raised through green bonds since 2018, followed by office REIT BXP Inc. with $5.05 billion raised.