Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the diversified reits industry, and their latest annual reports show $180.6 billion of combined revenue and a median operating margin of 20.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Diversified REITs own a mix of property types such as offices, retail and industrial across markets, and distribute most taxable income to shareholders. Results blend the cycles of each type, and capital allocation among them matters. The first numbers to compare across companies here are same-property net operating income growth, occupancy by property type and funds from operations per share.
Key Industry Metrics
- Same-property net operating income growth: The change in rent less costs on properties owned in both periods across office, retail and industrial. It blends segment cycles, so check which types pull it up or down.
- Occupancy by property type: The leased share within each segment of the portfolio. Differences show which segments are strong and which weigh on results.
- Funds from operations per share: Net income with depreciation added back and property sale gains removed, divided by shares. It is the main REIT earnings measure and the basis for payout comparisons.
- Net debt to EBITDA: Debt less cash compared with annual operating earnings. Lower is generally safer, and diversified portfolios are judged on whether leverage fits the weaker segments.
- Dividend coverage: How many times cash earnings cover the dividend. Coverage near one leaves little room for setbacks, while higher coverage allows reinvestment and cushions.
Primary Macro Drivers
- Property demand across segments: Different property types respond to different drivers, so demand strength or weakness in each segment shows up in occupancy and same-property NOI.
- Interest rates and cap rates: Higher rates raise financing costs and lift required yields, which lowers property values and affects FFO and net debt to EBITDA.
- Acquisitions and dispositions: Buying and selling properties changes the mix and balance sheet, shown in occupancy by type and funds from operations.
- Leasing spreads: New and renewal rent changes show pricing power, so leasing spreads show whether space is leasing above or below prior rents.
Major Risks
- Exposure to weak office and retail segments: Weak office and retail demand can drag on results despite strength elsewhere, shown in occupancy by property type and NOI.
- Refinancing and rate risk: Debt that comes due must be refinanced at current rates, so check maturities and interest expense against dividend coverage.
- Tenant credit: Tenant failures reduce rent and increase vacancy, so look at tenant credit, bad debt and occupancy.
- Portfolio complexity: Many property types and markets make results harder to read, so segment disclosures and NOI by type are worth reading.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Diversified REITs Filers in the SEC Record
110 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6798. Their latest fiscal years end between 2022 and 2026, and together they reported $180.6 billion of revenue. Median revenue growth over the prior year was 2.9%. Median operating margin was 20.0% and median net margin 10.0%. Median total liabilities were 54% of total assets, and 77 of 110 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Welltower Inc. | $10.8 billion | 35.6% | n/a | 8.6% | FY 2025 |
| American Tower Corp | $10.6 billion | 5.1% | 45.5% | 24.7% | FY 2025 |
| Equinix Inc | $9.2 billion | 5.4% | 20.0% | 14.6% | FY 2025 |
| Prologis, Inc. | $8.8 billion | 7.2% | 49.6% | 37.9% | FY 2025 |
| Weyerhaeuser Co | $6.9 billion | -3.1% | 10.6% | 4.7% | FY 2025 |
| Iron Mountain Inc | $6.9 billion | 12.2% | 16.9% | 2.2% | FY 2025 |
| Simon Property Group Inc. | $6.4 billion | 6.7% | 49.9% | 84.3% | FY 2025 |
| Host Hotels & Resorts, Inc. | $6.1 billion | 7.6% | 14.0% | 12.5% | FY 2025 |
The 8 largest of 110 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Diversified REITs guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Diversified REITs industry?
Key performance indicators for the Diversified REITs industry include: Same-property net operating income growth, Occupancy by property type, Funds from operations per share, Net debt to EBITDA, Dividend coverage. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Diversified REITs industry?
The Diversified REITs industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Diversified REITs industry?
The primary risks for Diversified REITs companies include: Exposure to weak office and retail segments, Refinancing and rate risk, Tenant credit, Portfolio complexity. Investors should assess each company's exposure to these factors and its track record of navigating them.