- Investors have announced nearly $3B in REIT take-private deals since September, ending a long pause in M&A activity.
- Ares’ $2.1B acquisition of Plymouth Industrial and Rithm’s $1.6B deal for Paramount Group lead recent transactions.
- Easier access to debt and persistent public-private valuation gaps suggest more deals are likely in 2026.
Momentum Returns to REIT M&A
Bisnow reports that after a stagnant start to the year, REIT M&A activity is building momentum. Since September, buyers have announced nearly $3B in take-private deals. While that’s a small figure in a $1.3T market, the uptick signals a shift. Capital is flowing again, and institutional players are moving off the sidelines.
Major Moves by Ares and Rithm
Ares Alternative Credit made the biggest move with its $2.1B all-cash bid for Plymouth Industrial REIT, topping an earlier offer from Sixth Street Partners. This deal reflects Ares’ aggressive expansion strategy, which also includes a targeted $5.2B acquisition of GLP Capital Partners, reinforcing the firm’s push into both industrial and diversified real estate sectors.
Rithm Capital followed closely, acquiring Paramount Group for $1.6B. The office REIT had faced scrutiny over undisclosed payments tied to its former CEO, which led to SEC involvement and weakened investor confidence.
Smaller, But Significant
Sotherly Hotels, a luxury lodging REIT, struck a deal in October to go private at a 153% premium to its trading price. Though smaller in size, the transaction further illustrates the gap between public valuations and private offers.
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Why Now
Debt markets have improved sharply since early 2025. Banks have resumed lending, and private equity funds are eager to deploy capital. “There’s access to debt capital, period, full stop. The banks are back,” said Dirk Aulabaugh of Green Street.
Public REITs Still Lag in Value
Discounted valuations remain a key driver. Office and multifamily REITs still trade well below NAV—by 27% and 19%, respectively. Meanwhile, tech and healthcare REITs are performing better, with healthcare REITs trading at an 89% premium. Triple-net lease and mall REITs also show positive pricing.
Big Deals May Be Next
Several major transactions are still in the pipeline:
- BlackRock and MGX are expected to acquire Aligned Data Centers in a potential $40B deal, fueled by demand for AI infrastructure.
- Brookfield is exploring a $10B bid for Yes Communities, a manufactured housing REIT owned by Singapore’s GIC.
While neither deal has closed, market insiders expect both to move forward, depending on Fed policy in December and broader economic trends.
Looking Ahead to 2026
Analysts expect the M&A wave to continue. Funds have raised over a trillion dollars for real estate, and REITs under $10B in value remain prime targets. “It’s not just the mega-firms anymore,” said Aulabaugh. “Dozens of companies have billion-dollar funds ready to go.”
The next phase of REIT consolidation may already be underway.
