2023 DST Fundraising Remains Tepid Through May

Fundraising for Delaware statutory trust offerings, typically used to facilitate securitized 1031 exchanges, totaled just over $2.1 billion for the year through May 2023, according to data provided by Robert A. Stanger & Co. and Mountain Dell Consulting. Based on the average monthly fundraising through May, DSTs are on pace to raise just over $5 billion in 2023.

Sponsors raised approximately $7.2 billion for DST offerings in 2021, which had been the annual record high prior to 2022 which was $9.2 billion.

Top sponsors through the end of May include:

Ares Management led sales with a total equity raise of $329.8 million with a market share of 15.7%.

Inland Real Estate Investment Corp.’s raised $245.6 million for a market share of 11.7%.

LaSalle Investment Management’s sales reached $191.2 million and a market share of 9.1%.

ExchangeRight totaled $157.7 million, capturing 7.5% market share.

Capital Square Realty Advisors LLC sales reached $121.2 million at a market share of 5.8%.

As The DI Wire previously reported, Stanger announced that year-to-date 2023 alternative investment fundraising totaled $24.6 billion through May.

Robert A. Stanger & Co. Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.

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