Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the mall 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
Mall REITs own enclosed regional malls and open-air centers and earn rent and percentage rent from retailers. Quality of anchors, tenant sales and foot traffic decide results, and weaker malls face closures and redevelopment. The first numbers to compare across companies here are tenant sales per square foot, occupancy and leasing spreads and net operating income growth.
Key Industry Metrics
- Tenant sales per square foot: Retailer sales divided by leased space. Higher sales support rent and show how productive the mall is, while declines hint at weaker tenants and closures.
- Occupancy and leasing spreads: The leased share of space and the rent change on new leases against old. Weak occupancy or negative spreads show demand weakening at the property.
- Net operating income growth: The change in rent less operating costs on owned malls. It shows if rent increases and fewer vacancies are outpacing costs.
- 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 with the dividend and debt burden.
- Redevelopment pipeline: Projects to repurpose space with housing, offices or entertainment. They can lift value from weaker properties but need capital and take time to deliver.
Primary Macro Drivers
- Consumer spending and foot traffic: Shoppers' budgets and visits drive tenant sales, shown in tenant sales per square foot and occupancy.
- Anchor tenant health: Anchor stores bring traffic that supports smaller tenants, so anchor health shows in occupancy and foot traffic.
- Retail bankruptcies: When retailers fail, space empties and rent drops, shown in occupancy and leasing spreads.
- Interest rates: Higher rates raise financing cost and lower values, shown in FFO per share and valuation.
Major Risks
- Online retail competition: Shifts to online buying reduce store sales and demand for space, shown in tenant sales and occupancy.
- Tenant bankruptcies: Failed tenants leave vacant space and unpaid rent, shown in bad debt and occupancy.
- Redevelopment cost: Reworking a property costs a lot and returns come later, shown in redevelopment pipeline and spending.
- High leverage: Debt heavy balance sheets feel rate and value declines, shown in net debt to EBITDA and maturities.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Declining |
| Geographic Importance | U.S. |
Mall 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 Mall 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
- Manufactured Housing REITs
- Logistics REITs
- Master-Planned Community Developers
- Lodging & Resort REITs
- Medical Office REITs
- Life Science Office REITs
- Net Lease REITs
- Infrastructure REITs
Put it to work
Frequently Asked Questions
What are the main KPIs for the Mall REITs industry?
Key performance indicators for the Mall REITs industry include: Tenant sales per square foot, Occupancy and leasing spreads, Net operating income growth, Funds from operations per share, Redevelopment pipeline. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Mall REITs industry?
The Mall REITs industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Mall REITs industry?
The primary risks for Mall REITs companies include: Online retail competition, Tenant bankruptcies, Redevelopment cost, High leverage. Investors should assess each company's exposure to these factors and its track record of navigating them.