DST Equity Raise Drops 19% in July but Still on Track for $7.5B by Year’s End

The equity raise for Delaware statutory trust offerings in July 2025 was approximately $511.4 million, an almost 19% decrease from the nearly $630.3 million equity raised in June, according to the latest data provided by Mountain Dell Consulting. For the year, the equity raise was just over $4.19 billion as of July 31, 2025. This was a 39%-plus year-over-year increase from the approximately $3 billion raised at the end of July 2024.

“I still believe we will be in the $7.5 billion in equity range by year’s end,” said Taylor Garrett, president of Mountain Dell Consulting. “If we annualize the numbers, it is closer to $7.2 billion, but we see a trend moving upwards the second half of the year. There is a lot of new product coming out in the next 60 days so I believe it could end up higher depending on transaction volume.”

With approximately $753.6 million in total equity raised (nearly 18% of the market share), Ares Real Estate Exchange was the leader in sales year-to-date. According to Mountain Dell, other sponsors rounding out the top five and representing the highest percent of market share through the end of July 2025 were:

Hines Real Estate Exchange with a total equity raise of approximately $415.4 million (9.9%);

Inland Private Capital Corporation with a year-to-date tally of approximately $389.4 million (9.3%);

JLL Exchange with a year-to-date tally of approximately $305.7 million (7.3%); and

ExchangeRight Real Estate with a year-to-date tally of approximately $274 million (6.5%).

“Something notable is that the top six sponsors all have a vibrant 721-oriented program,” said Garrett. “Although Inland and ExchangeRight do both optional, as well as intended 721 programs, all six are focused heavily on the 721 component and we don’t see that changing anytime soon. I anticipate that 50% of equity raised will be going toward 721 offerings.”

At this stage, most sponsors write 721 optionality into their PPM, but the top six – with Blue Owl Real Estate Exchange at the No. 6 spot – are geared toward the 721 exchange as an exit strategy.

In a recent AltsWire “Five Questions for…” piece, Louis Rogers, founder and co-chief executive officer of Capital Square, discussed the popularity of DST-to-UPREIT transactions completed under Section 721.

Industrial and multifamily-focused programs were the largest equity offerings added by sponsors this month, according to Mountain Dell. This included AIREX Portfolio 9 DST, a portfolio spanning Florida,  sponsored by Ares Real Estate Exchange and seeking to raise more than $126.67 million, and Madison Waterstar DST, a multifamily asset in Kissimmee, Fla., sponsored by Madison Capital Group and seeking to raise approximately $106.75 million.

As of the end of July, 46 active sponsors were offering 86 programs, according to Mountain Dell. Industrial and multifamily continued to be the most popular asset types, comprising 39% and 25% of all syndicated offerings, respectively. Days on market has also fallen 10% from this time last year.

To close out last year, DSTs raised nearly $5.66 billion, as of Dec. 31, 2024. This was a significant 12% increase in equity raised compared to the low-end of the range $5.04 billion amassed in 2023. In 2021, for context, DST sponsors raised $7.2 billion. This record year was surpassed a year later when DSTs attracted approximately $9.2 billion in 2022.

Located in the Salt Lake City region, Mountain Dell Consulting is a consulting and research firm focused on real estate-oriented investment programs. It has sourced and compiled data on the securitized 1031 exchange market since 2003.

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