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Low-cost debt, demand for income, demonstrated capitalization rate compression and REIT distribution increases have allayed some investory skepticism. In this photo, H&R REIT is planning to Acquire Two Gotham Center, a State-of-the-Art Office Tower in New York.
Low-cost debt, demand for income, demonstrated capitalization rate compression and REIT distribution increases have allayed some investory skepticism. In this photo, H&R REIT is planning to Acquire Two Gotham Center, a State-of-the-Art Office Tower in New York.
(CNW Group/H&R Real Estate Investment Trust)

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Canadian REITs issue debt at record levels

For years, Bay Street’s equity desks reaped the rewards of underwriting offerings for real estate investment trusts. Now the debt desks are getting their chance to shine.

In 2012, Canadian REITs issued $2.1-billion of unsecured debt, more than double the average annual issuance from 2009 to 2011, according to analyst Neil Downey at RBC Dominion Securities. Better yet, last year’s issuance topped the historical record of $1.5-billion set in 1997.