Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the shopping center 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
Shopping center REITs own grocery-anchored and open-air centers that lease space to grocers, service tenants and restaurants. Necessity-based tenants make income stable, and limited new construction has supported rents. The first numbers to compare across companies here are occupancy and leasing spreads, anchor tenant exposure and same-property net operating income growth.
Key Industry Metrics
- Occupancy and leasing spreads: The leased share of space and the rent change on new leases against prior. Steady occupancy with positive spreads shows healthy demand.
- Anchor tenant exposure: The share of rent and space tied to large anchors such as grocers. Strong anchors draw traffic, while the loss of one can hurt neighboring tenants.
- Same-property net operating income growth: The change in rent less operating costs on centers owned in both periods. It excludes acquisitions to show underlying performance.
- 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.
- Redevelopment pipeline: Projects that add housing, retail or other uses to centers. They can lift value but need capital and carry delivery risk.
Primary Macro Drivers
- Grocery and service tenant demand: Grocers and service tenants draw frequent visits, so their strength supports occupancy and leasing spreads.
- Limited new supply: With few new centers built, existing space has pricing power, which supports rent growth and occupancy.
- Consumer spending: Shoppers' budgets drive tenant sales and their ability to pay rent, which shows in occupancy and same-property NOI growth.
- 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 tenants fail, space empties and rent stops, shown in bad debt and occupancy until the space is re-leased.
- Anchor closures: If an anchor leaves, smaller tenants with co-tenancy clauses may pay less or follow, shown in anchor exposure and occupancy.
- Rate sensitivity: Rate rises lift interest expense and lower values, so compare debt maturities with funds from operations per share.
- Redevelopment costs: Reworking centers costs money before it earns, shown in redevelopment spending against its stated yield.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Defensive |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Shopping Center 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 Shopping Center 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 Shopping Center REITs industry?
Key performance indicators for the Shopping Center REITs industry include: Occupancy and leasing spreads, Anchor tenant exposure, Same-property 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 Shopping Center REITs industry?
The Shopping Center 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 Shopping Center REITs industry?
The primary risks for Shopping Center REITs companies include: Tenant bankruptcies, Anchor closures, Rate sensitivity, Redevelopment costs. Investors should assess each company's exposure to these factors and its track record of navigating them.