Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the equity 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
Equity REITs own and operate income-producing real estate such as apartments, offices, warehouses and shopping centers, and earn rent from tenants. They must distribute most of their taxable income, so dividends are central to returns. The first numbers to compare across companies here are funds from operations per share, same-property net operating income growth and occupancy.
Key Industry Metrics
- Funds from operations per share: Net income with property depreciation added back and sale gains removed, divided by shares. It is the standard REIT earnings measure, read against the dividend and per-share trend.
- Same-property net operating income growth: The change in rent less operating costs on properties owned in both periods. It excludes acquisitions and development, so it shows underlying portfolio performance.
- Occupancy: The share of rentable space that is leased. Higher occupancy supports rents and stable income, and falling occupancy is an early sign of weak demand.
- Net debt to EBITDA: Debt less cash compared with annual operating earnings. It shows balance sheet strain, and the level that is acceptable depends on property type and lease length.
- Dividend coverage: How many times cash earnings cover the dividend. Thin coverage leaves little cushion against vacancies, while stronger coverage shows the payout is well supported.
Primary Macro Drivers
- Property demand and rents: Occupancy and rents follow demand for space by tenants, shown in same-property NOI growth and funds from operations.
- Interest rates and cap rates: Rates affect borrowing cost and the yield buyers require, which shows in property values, acquisitions and net debt to EBITDA.
- Access to capital: Debt and equity markets fund purchases and development, so cost and availability of capital shape growth and dividend coverage.
- New supply: New buildings add competition for tenants and can cut rents, shown in occupancy and leasing spreads.
Major Risks
- Rising interest rates: Higher rates raise interest expense and lower property values, shown in FFO per share and net debt to EBITDA.
- Tenant defaults and vacancy: Tenants that fail leave space empty, cutting rent and raising costs, shown in occupancy and bad debt.
- Refinancing risk: Debt must be rolled at current rates, so check the maturity ladder and interest expense against dividend coverage.
- Property value declines: Falling values can raise leverage ratios and limit financing, shown in impairments, net debt to EBITDA and covenants.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Equity 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 Equity 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.
More in Real Estate
- Real Estate sector overview
- Gaming REITs
- Equity Real Estate Investment Trusts
- Health Care REITs
- Diversified REITs
- Industrial REITs
- Data Center REITs
- Infrastructure REITs
- Commercial Real Estate Developers
Put it to work
Frequently Asked Questions
What are the main KPIs for the Equity REITs industry?
Key performance indicators for the Equity REITs industry include: Funds from operations per share, Same-property net operating income growth, Occupancy, 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 Equity REITs industry?
The Equity 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 Equity REITs industry?
The primary risks for Equity REITs companies include: Rising interest rates, Tenant defaults and vacancy, Refinancing risk, Property value declines. Investors should assess each company's exposure to these factors and its track record of navigating them.