Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the residential 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
Residential REITs own apartments, single-family rentals, manufactured housing and student housing that households rent. They earn rent and benefit from limited supply, and results follow job growth and household formation. The first numbers to compare across companies here are same-store net operating income growth, occupancy and rent growth on new and renewal leases.
Key Industry Metrics
- Same-store net operating income growth: The change in rent less operating costs on homes owned in both periods. It strips out acquisitions to show underlying performance.
- Occupancy: The share of residential units that are leased. High occupancy supports rent growth, and drops can indicate new supply or weaker demand.
- Rent growth on new and renewal leases: The change in rent on newly signed and renewed leases against prior rent. It shows pricing power and where the market is heading.
- 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.
- Development yield: Expected annual income divided by the cost of new housing. A yield above market cap rates implies value creation, if costs and leasing go to plan.
Primary Macro Drivers
- Household formation and employment: New households and job growth create renters, which shows in occupancy and rent growth on new and renewal leases.
- New supply: New buildings add competing units, so heavy deliveries can force concessions and slow rent growth, shown in occupancy and same-store NOI.
- Home ownership affordability: When buying is expensive, more households keep renting, which supports occupancy and renewal rent growth.
- Interest rates: Higher rates raise financing cost and the yields buyers require, pushing down values and narrowing development spreads.
Major Risks
- Supply additions: New buildings in a market can cap rents and fill slowly, so watch occupancy, concessions and rent growth on new leases.
- Rent control: Limits on rent increases cap revenue while costs keep rising, shown in rent growth and NOI margin in affected markets.
- Interest rates: Rate rises lift interest expense on refinanced debt and lower values, so compare the debt maturity schedule with funds from operations per share.
- Operating cost inflation: Taxes, insurance, repairs and wages can rise faster than rents, shown in same-store expense growth against NOI growth.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Residential 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 Residential 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
- Retail REITs
- Residential Real Estate Brokerage
- Self-Storage REITs
- Residential Lot Developers
- Senior Housing REITs
- Real Estate Services
- Shopping Center REITs
- Real Estate Management & Development
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Frequently Asked Questions
What are the main KPIs for the Residential REITs industry?
Key performance indicators for the Residential REITs industry include: Same-store net operating income growth, Occupancy, Rent growth on new and renewal leases, Funds from operations per share, Development 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 Residential REITs industry?
The Residential 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 Residential REITs industry?
The primary risks for Residential REITs companies include: Supply additions, Rent control, Interest rates, Operating cost inflation. Investors should assess each company's exposure to these factors and its track record of navigating them.