Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the retail 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
Retail REITs own shopping centers, grocery-anchored centers, malls and street retail leased to retailers. Performance depends on tenant sales, occupancy and the strength of anchors, with necessity retail the steadiest. The first numbers to compare across companies here are occupancy, leasing spreads and same-property net operating income growth.
Key Industry Metrics
- Occupancy: The share of retail space that is leased. Steady or rising occupancy supports rents, and drops show tenant closures or weaker demand.
- Leasing spreads: The change in rent on new and renewed leases against prior rent. Positive spreads show rents rising as leases roll.
- Same-property net operating income growth: The change in rent less costs on properties owned in both periods. It excludes acquisitions to show underlying performance.
- Tenant sales and bad debt: Retailer sales at the property and the rent not collected. Rising sales support rent increases, while higher bad debt flags tenant stress.
- 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
- Consumer spending: Shoppers' budgets drive tenant sales and their ability to pay rent, which shows in occupancy, tenant sales and bad debt.
- Retailer expansion and bankruptcies: Store openings fill space while bankruptcies empty it, so the balance shows in occupancy and leasing spreads.
- Limited new supply: With few new centers built, existing space has pricing power, which supports rent growth and occupancy.
- Interest rates: Higher rates raise financing cost and lower values, which narrows acquisition spreads and weighs on funds from operations.
Major Risks
- Tenant bankruptcies: When retailers fail, space empties and rent stops, shown in bad debt, occupancy and weaker leasing spreads on re-leasing.
- E-commerce competition: Online buying reduces demand for some store formats, so watch tenant sales and occupancy in weaker centers.
- Rate sensitivity: Rate rises lift interest expense and lower values, so compare debt maturities with funds from operations per share and net debt.
- Redevelopment costs: Reworking centers costs money up front and returns come later, shown in redevelopment spending and the expected yield on the pipeline.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Retail 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 Retail 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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Frequently Asked Questions
What are the main KPIs for the Retail REITs industry?
Key performance indicators for the Retail REITs industry include: Occupancy, Leasing spreads, Same-property net operating income growth, Tenant sales and bad debt, 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 Retail REITs industry?
The Retail 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 Retail REITs industry?
The primary risks for Retail REITs companies include: Tenant bankruptcies, E-commerce competition, Rate sensitivity, Redevelopment costs. Investors should assess each company's exposure to these factors and its track record of navigating them.