REIT capital raising and dividend policies during the COVID-19 pandemic crisis

The COVID-19 pandemic was an unprecedented market disruption that had significant global economic consequences. In the face of uncertainty, the U.S. and virtually all other markets around the world halted economic activity and governments found innovative ways to support individuals, families, and companies during the time of crisis. The crisis crippled all corners of the market and forced a generalized shutdown. The U.S. REIT sector was not an exemption, the industry experienced a significant temporary shock to revenue and to the supply of capital which is crucial for operations and growth. In this paper, we examine the impact of the COVID-19 pandemic crisis on REIT dividend policy and capital raising. For our analyses, we employ accounting and dividend data from S&P Global Market Intelligence (Formerly SNL Financial), and debt and equity offerings from the National Association of Real Estate Investment Trusts (NAREIT). We seek to determine the severity of the COVID-19 pandemic crisis on the halt or partial disruption in REIT dividend payments and uncover the ways REIT managers coped with the short-term market shocks. In addition, we will determine whether the capital markets provided REITs with capital during these uncertain times.