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Go Residential Real Estate Investment Trust has entered into agreements to acquire two residential properties in New York 7 Dey Street and 409 Eastern Parkway for a total value of USD 439.6 million. The company indicated that the acquisitions are expected to be accretive to its annualized adjusted funds from operations per unit in the mid-single-digit range. Alongside the transaction, the REIT has also announced a concurrent trust unit offering and private placement to support funding. The move reflects continued interest among global REITs in stable rental housing assets in key urban markets.
Go Residential Real Estate Investment Trust has announced that it has entered into agreements to acquire two residential properties located at 7 Dey Street and 409 Eastern Parkway in New York for a combined value of USD 439.6 million. Advertisement
The company stated that the acquisition is expected to contribute positively to its financial performance, with the deals projected to be accretive to annualized adjusted funds from operations (AFFO) per unit in the mid-single-digit range. This indicates that the assets are likely to generate stable income and improve overall returns for unitholders.
To finance the transaction, the REIT has also planned a concurrent trust unit offering along with a private placement. Such fundraising mechanisms are commonly used by REITs to maintain a balanced capital structure while pursuing expansion opportunities.
Both properties are located in established urban areas of New York, a market known for its consistent rental demand and long-term capital appreciation potential. Residential assets in cities like New York continue to attract institutional investors due to relatively stable occupancy levels and predictable cash flows compared to other asset classes.
The acquisition aligns with the REIT's broader strategy of expanding its portfolio through income-generating residential properties in key metropolitan markets. In recent years, several global REITs have increased their exposure to multifamily housing, driven by rising urbanisation and sustained rental demand.
Source Reuters
5th Jun, 2025
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