Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the warehouse 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
Warehouse REITs own storage and distribution buildings leased to e-commerce, retail and manufacturing tenants. Occupancy is high when logistics demand is strong, and rents follow supply in each market. The first numbers to compare across companies here are occupancy, rent growth on leases and same-store net operating income.
Key Industry Metrics
- Occupancy: The share of warehouse space that is leased. High occupancy supports rent growth, while falling occupancy signals new supply or tenant weakness.
- Rent growth on leases: The change in rent on new and renewed leases compared with prior rent. It shows whether space is re-leasing above or below old rents.
- Same-store net operating income: Rent less operating costs on buildings owned in both periods. It strips out acquisitions to show underlying performance.
- Development pipeline: Buildings under construction and planned. It shows growth potential, and a heavy pipeline in a soft market raises oversupply risk.
- 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
- E-commerce and trade: Online sales and trade need storage and distribution space, which shows in occupancy and rent growth on leases.
- New supply: New buildings add space that can cap rent growth, which shows in occupancy and same-store NOI.
- Tenant inventory management: Tenants hold more or less stock depending on strategy, which shows in space demand and occupancy.
- Interest rates: Higher rates raise financing cost and lower values, which shows in funds from operations per share and development yield.
Major Risks
- Overbuilding: Too many new buildings can leave space empty and cut rents, which shows in occupancy and leasing.
- Tenant weakness: Tenants that fail leave space empty and rent unpaid, which shows in occupancy and bad debt.
- Higher rates: Rate rises lift interest expense on refinanced debt and lower values, so compare maturities with funds from operations per share.
- Construction costs: Rising materials and labor lower development yield, so watch pipeline disclosures and costs per square foot.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Warehouse 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 Warehouse 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 Warehouse REITs industry?
Key performance indicators for the Warehouse REITs industry include: Occupancy, Rent growth on leases, Same-store net operating income, Development pipeline, 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 Warehouse REITs industry?
The Warehouse 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 Warehouse REITs industry?
The primary risks for Warehouse REITs companies include: Overbuilding, Tenant weakness, Higher rates, Construction costs. Investors should assess each company's exposure to these factors and its track record of navigating them.