Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the industrial 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
Industrial REITs own warehouses, distribution centers and light industrial buildings leased to logistics, e-commerce and manufacturing tenants. Demand follows trade and online retail, and rents reset higher when leases expire below market. The first numbers to compare across companies here are same-store net operating income growth, occupancy and rent change on new and renewal leases.
Key Industry Metrics
- Same-store net operating income growth: The change in rent less operating costs on warehouses owned in both periods. It shows underlying results without acquisitions or new development.
- Occupancy: The share of warehouse space that is leased. High occupancy supports rent growth, and a drop can signal new supply or tenant weakness.
- Rent change on new and renewal leases: The difference between new rent and the prior rent on the same space. Large positive changes show leases marking up to market, so older leases are a source of growth.
- Development pipeline and yield: Buildings under construction and expected income as a share of cost. A yield above market cap rates implies value creation, if leasing and costs hold.
- Funds from operations per share: Net income with depreciation added back and sale gains removed, divided by shares. It is the main REIT earnings measure, read against dividends.
Primary Macro Drivers
- E-commerce and supply chain demand: Online shopping and trade need warehouse space, so growth shows in occupancy and rent changes on new and renewal leases.
- New supply: New buildings add space that can cap rent growth, shown in occupancy and same-store NOI growth.
- Interest rates and cap rates: Rates affect borrowing cost and required yields, shown in acquisitions, development yield and valuation.
- Tenant inventory decisions: Tenants hold more or less stock depending on strategy, which shows in space demand and occupancy.
Major Risks
- Overbuilding: Too many new buildings can leave space empty and cut rents, so watch occupancy and leasing spreads.
- Customer weakness in retail: Weak retail tenants cut space needs or fail, shown in occupancy and tenant concentration.
- Rate increases: Higher rates raise financing cost and lower values, shown in FFO per share and development yield.
- Construction cost inflation: Rising labor and materials cost lowers yield on cost, so watch development pipeline disclosures.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Industrial 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 Industrial 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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Put it to work
Frequently Asked Questions
What are the main KPIs for the Industrial REITs industry?
Key performance indicators for the Industrial REITs industry include: Same-store net operating income growth, Occupancy, Rent change on new and renewal leases, Development pipeline and yield, Funds from operations per share. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Industrial REITs industry?
The Industrial 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 Industrial REITs industry?
The primary risks for Industrial REITs companies include: Overbuilding, Customer weakness in retail, Rate increases, Construction cost inflation. Investors should assess each company's exposure to these factors and its track record of navigating them.