An uptick in acquisitions underpins a flurry of credit rating actions and a generally upbeat assessment of the North American corporate real estate market in the second quarter of 2026. A newly released summary from the credit rating agency, Morningstar DBRS, reports a 10-year high in its quarterly action output, represented in 18 reviews of public-rated real estate entities this spring.

The agency’s Q2 work translated into one negative, three positive and 14 neutral credit rating actions. Analysts link this to debt reduction and/or acquisition of assets at a price-point below their net asset value. Overall, the agency predicts real estate issuers will maintain or “slightly improve” their credit ratings in the coming months despite current economic volatility.

The summary highlights three notable credit rating actions linked to transactions, including:

• Choice Properties REIT, confirmed at a BBB high rating with positive trends following announcement of a pending deal to acquire a subset of First Capital REIT’s real estate portfolio;
• Chartwell Retirement Residences, upgraded to a BBB rating with stable trends following announcement of a joint venture with Fengate Capital to acquire a 30 per cent interest in the Seasons Retirement Communities portfolio; and
• Morguard Corporation, upgraded to a BBB low rating with stable trends following the announced acquisition of a multifamily portfolio in the Greater Toronto and Hamilton Area.

“In our view, acquisition activity in the recent quarter has been driven by a favorable environment as capital markets are healthy and management teams continue to reinvest in their respective core businesses,” the analysis states.

Meanwhile, the analysis notes a cross-border discrepancy in issuance arising from higher and more volatile interest rates in the United States. The agency has now revised its 2026 forecast downward — from the $13 billion of issuance envisioned at the end of Q4 2025 to a new projection of $10.5 billion. That’s based on the premise that this year will mirror 2025, when 53 per cent of issuance occurred in the first half of the year. The analysis concludes that debt capital markets “remain healthy and balanced”, but interest rate volatility is likely to persist in the United States.

“More likely, the less volatile Canadian benchmark interest rates are providing a more supportive environment for Canadian issuers accessing the domestic market,” it states. “Notwithstanding the near-term issuance environment, corporate real estate issuers continue to view senior unsecured bonds as an attractive source of capital, including the speed to issue, vis-à-vis rating mortgage debt and enhanced financial flexibility.”