Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the health care 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
Health care REITs own senior housing, medical offices, hospitals and life-science buildings and lease or operate them, with returns tied to patient demand and operator strength. Senior housing is currently the growth driver. The first numbers to compare across companies here are same-store net operating income growth, occupancy by property type and rent coverage for leased assets.
Key Industry Metrics
- Same-store net operating income growth: The change in rent less operating costs on properties owned in both periods. It shows underlying performance across senior housing, medical offices and other types.
- Occupancy by property type: The leased or occupied share within senior housing, medical offices and other segments. Differences show which segments are recovering and which lag.
- Rent coverage for leased assets: Operator earnings relative to rent owed on leased facilities. A weak ratio warns that tenants may need rent relief or fail.
- Funds from operations per share: Net income with depreciation added back and property gains removed, divided by shares. It is the main REIT earnings measure used for dividends and valuation.
- Acquisitions and yield: Properties bought and the initial income as a share of price. Yield against cost of capital shows whether purchases add value.
Primary Macro Drivers
- Aging population: More older residents need more care and housing, supporting demand for senior housing and medical offices, shown in occupancy and NOI.
- Senior housing supply and occupancy: When supply is limited and demand grows, occupancy and rents rise, shown in occupancy by property type and same-store NOI.
- Operator health and government reimbursement: Operators pay rent and reimbursements pay operators, so their financial health sets rent coverage and stability.
- Interest rates: Rates affect borrowing cost and the yield buyers demand, shown in acquisitions yield and FFO per share.
Major Risks
- Operator bankruptcies: If an operator fails, rent stops and the REIT must find a new operator, shown in rent coverage and tenant concentration.
- Staffing and wage pressure: Care labor is a large cost for operators, so wage pressure can cut their margins and rent coverage.
- Reimbursement changes: Changes to government payment rates can cut operators' revenue and their ability to pay rent, so watch coverage ratios and policy.
- Interest rate sensitivity: Higher rates raise financing cost and lower values, shown in FFO per share and acquisition yields.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |
Health Care 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 Health Care 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
- Industrial REITs
- Gaming REITs
- Infrastructure REITs
- Equity REITs
- Life Science Office REITs
- Equity Real Estate Investment Trusts
- Lodging & Resort REITs
- Diversified REITs
Put it to work
Frequently Asked Questions
What are the main KPIs for the Health Care REITs industry?
Key performance indicators for the Health Care REITs industry include: Same-store net operating income growth, Occupancy by property type, Rent coverage for leased assets, Funds from operations per share, Acquisitions and yield. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Health Care REITs industry?
The Health Care REITs industry is generally defensive, meaning demand tends to remain relatively stable regardless of the economic cycle. Companies in this space can provide portfolio stability during recessions, though growth may lag in strong expansions.
What are the biggest risks in the Health Care REITs industry?
The primary risks for Health Care REITs companies include: Operator bankruptcies, Staffing and wage pressure, Reimbursement changes, Interest rate sensitivity. Investors should assess each company's exposure to these factors and its track record of navigating them.