Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the senior housing 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
Senior housing REITs own independent living, assisted living and memory care communities, operated by third parties or managed under REIT-owned structures. Occupancy recovery, rent growth and the cost of care labor drive income. The first numbers to compare across companies here are occupancy, revenue per occupied unit and net operating income growth.
Key Industry Metrics
- Occupancy: The share of units that are occupied by residents. Recovery or decline here is the main driver of income, since costs are largely fixed.
- Revenue per occupied unit: Monthly revenue from each occupied unit including care fees. It shows pricing and care mix, and rises with rent and care levels.
- Net operating income growth: The change in revenue less operating costs. It combines occupancy, rent and labor cost trends, so it shows the net effect on profit.
- Labor cost: Wages and staffing expense for care and operations. Care is labor-intensive, so wage inflation can erase rent gains.
- 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
- Aging population: A growing base of older residents needs housing and care, which supports occupancy and revenue per occupied unit.
- Limited new supply: With few new communities opening, existing ones fill faster, which supports occupancy and rent growth.
- Wage inflation: Care staff are a large cost for operators, so wage increases cut margins unless rents rise, shown in labor cost and NOI.
- Interest rates: Higher rates raise borrowing cost and required yields, lowering values and affecting funds from operations per share.
Major Risks
- Labor cost: Care wages and agency staffing push up operator costs and cut margins, so watch labor cost and NOI growth together.
- Operator failures: A weak operator can fall behind on rent or exit, forcing a transition, which shows in rent coverage and tenant concentration.
- Occupancy swings: Resident moves, illness or outbreaks can change occupancy quickly while fixed costs remain, shown in occupancy and revenue per unit.
- Interest rates: Rate rises lift interest expense on refinanced debt and lower values, so compare debt maturities with funds from operations per share.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |
Senior Housing 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 Senior Housing 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 Senior Housing REITs industry?
Key performance indicators for the Senior Housing REITs industry include: Occupancy, Revenue per occupied unit, Net operating income growth, Labor cost, 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 Senior Housing REITs industry?
The Senior Housing 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 Senior Housing REITs industry?
The primary risks for Senior Housing REITs companies include: Labor cost, Operator failures, Occupancy swings, Interest rates. Investors should assess each company's exposure to these factors and its track record of navigating them.