DST Fundraising Off to a Steady Start in 2025 Despite 12.5% Decrease Month-to-Month

The equity raise for Delaware statutory trust offerings in February 2025 was approximately $531.2 million, a 12.5% slide from the $607.1 million equity raised in January, according to Mountain Dell Consulting. Despite the month-to-month slip, the consulting firm’s outlook is positive.

“The DST equity raised through the first two months of the year totals just over $1.16 billion, which annualizes to roughly $7 billion for the year,” said Taylor Garrett, president of Mountain Dell Consulting.

This is a significantly stronger start than the $843.8 million raised at the end of February 2024.

“We believe we will see a pick up in the second half of the year and believe we could be in the $7.5 billion range by year end,” added Garrett.

To close out last year, DSTs raised nearly $5.66 billion, as of Dec. 31, 2024. This exceeded Mountain Dell Consulting’s $5.5 billion equity raise prediction for 2024 and 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.

With approximately $194.7 million in total equity raised (17% 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 February 2025 were:

Inland Private Capital Corporation with a year-to-date tally of approximately $152.2 million (13%);

JLL Exchange with a year-to-date tally of approximately $138.7 million (12%);

Hines Real Estate Exchange with a total equity raise of approximately $118.4 million (10%); and

ExchangeRight Real Estate with a year-to-date tally of approximately $68 million (6%).

The largest offering amounts by programs added in February were significant. They included ADREX Diversified 8 DST, a six-state industrial asset sponsored by Ares Real Estate Exchange and seeking to raise approximately $435.5 million, and JLLX Diversified 9 DST, a multifamily asset in Arizona and California sponsored by JLL Exchange and seeking to raise more than $167 million.

As of the end of February, 52 active sponsors were sponsoring 89 programs, according to Mountain Dell. Multifamily and industrial continued to be the most popular asset types, comprising 38% and 31% of all syndicated offerings, respectively. Multifamily has picked up since representing 28% of asset types to close out 2024.

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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