Deal activity among real estate investment trusts is gaining momentum after years of weak public market conditions.
After a long stretch when REIT stocks were out of favor and trading at depressed values, companies feel more confident buying, selling, merging or launching new investments to the public.
This week alone delivered two clear markers of that shift: Ares Management struck a $1.7 billion agreement to take Whitestone REIT private, while National Healthcare Properties moved toward a stock listing.
The transactions point to a reopening of capital markets for REITs and rising conviction among institutional investors that property valuations have reset, according to industry professionals. Capital is moving, consolidation is accelerating, and the next batch of REITs is emerging.
"REITs and private real estate are both essential parts of the commercial real estate ecosystem, and capital is constantly moving between the two," Edward Pierzak, senior vice president of research at Nareit, told CoStar News in an email. "At times, companies may be taken private, often at a meaningful premium, when public market valuations don't fully reflect underlying real estate values."
Conversely, companies may enter the public REIT market to access permanent capital and broaden their investor base, he added.
"Across both directions, these transactions underscore a common theme: investors are actively recognizing the value of real estate and the REIT structure, and positioning capital accordingly," Pierzak said.
Since 2019, roughly 60% of REIT merger and acquisition activity has been publicly listed-to-publicly listed transactions — meaning a company listed on a stock exchange acquired another listed company — highlighting that the dominant trend is strategic consolidation within the public REIT market, not an exit from it, he said.
Agreement represents price premium
The Ares-Whitestone deal underscores how private capital is stepping in to capture discounted public assets.
Under the agreement, Ares will acquire all outstanding Whitestone common shares and operating partnership units for $19 per share in cash. The offer values Whitestone at about $1.7 billion and represents a 12.2% premium to the company's Wednesday closing price. It also marks a 26.5% premium to the stock's share price before a Reuters report last month disclosed Whitestone had hired advisers to explore a sale.
Whitestone owns 56 neighborhood-focused retail properties totaling about 4.9 million square feet. Its centers are concentrated in high-growth Sun Belt markets, including Phoenix, Arizona; and Austin, Dallas, Houston and San Antonio in Texas.
"We believe Whitestone has demonstrated the value of high‑return smaller spaces occupied by a well‑diversified mix of tenants," Whitestone CEO Dave Holeman said in a statement. The transaction, he added, "is a testament to the value that strategy has created for our business and, ultimately, for our shareholders."
Ares framed the acquisition as a strategic expansion into necessity‑based retail at a time when consumer demand favors convenience and daily‑need formats.
"Whitestone's portfolio provides an attractive opportunity to further diversify Ares Real Estate's footprint with supply‑constrained retail centers in high‑demand metro regions," David Roth, global head of real estate strategy and growth for Ares Real Estate, said in announcing the deal.
The transaction is expected to close in the third quarter, subject to shareholder approval and customary conditions. Once completed, Whitestone will become a private company and delist from the New York Stock Exchange.
The deal lands amid broader signs that REIT markets are thawing.
Senior housing REIT seeks to go public
National Healthcare Properties, a nontraded healthcare REIT, publicly filed for an initial public offering that could raise up to $100 million. The company plans to list on the Nasdaq Global Select Market under the ticker NHP, although pricing and timing remain subject to market conditions.
As of year-end 2025, National Healthcare Properties' portfolio consisted of 37 senior housing communities, with 3,615 units and 130 outpatient medical facilities, totaling about 3.7 million square feet.
The filing follows Janus Living's recent $878 million IPO. The Denver-based senior housing REIT's shares began trading on the NYSE last month.
Janus' initial portfolio consists of 34 senior housing communities, comprising 10,422 units as of Dec. 31. Units in Florida and Texas represent 69% of the total.
The successful debut is fueling expectations that the IPO window may be reopening for real estate companies after a prolonged slowdown.
"The successful listing of Janus Living shows the public markets are once again open for business," David Auerbach, chief investment officer at Hoya Capital Real Estate, said in an email to CoStar News. He described the sector as moving away from years of macro‑driven pressure and toward a "real estate renaissance" grounded in property‑level fundamentals.
Auerbach said the Whitestone transaction fits a wider pattern. Many small-cap REITs continue to trade at steep discounts to net asset value, creating opportunities for larger, well‑capitalized buyers.
"If you're a small‑cap REIT, it sure seems like low‑hanging fruit right now," he said.
Ratings firm KBRA reached a similar conclusion in a recent report, noting that announced REIT acquisition volume reached roughly $24 billion in 2025, nearly double the prior year. The firm said persistent net asset value discounts, the need for greater scale and improving capital‑markets liquidity are driving a wave of take‑private deals and strategic mergers.