- Funds From Operations (FFO) rose 17.3% year-over-year, while Net Operating Income (NOI) increased 5.2%.
- REITs maintained a 93.0% average occupancy rate, with retail leading at 96.9%.
- Debt stayed low and well-managed, with 80.6% unsecured and 88.7% at fixed interest rates.
REITs Show Strength Amid Uncertainty
US listed REITs continued to show resilience in Q3 2025, with REIT performance improving across the board. They grew FFO to $21.0B, a 17.3% increase from the same time last year. Nearly two-thirds of REITs saw their FFO rise. The strong performance reflects both solid operations this year and a bounce-back from losses in 2024.
NOI also grew, reaching $30.6B—up 5.2% year-over-year. Over 60% of REITs reported NOI gains. Same-store NOI climbed 2.8%, highlighting steady internal growth.
According to John Worth, EVP of Research and Investor Outreach at Nareit, “These strong results show that REITs are ready to take advantage of new growth opportunities in 2026.”
Occupancy Rates Remain High
REITs continued to keep buildings full. Average occupancy across sectors hit 93.0%. Retail led at 96.9%, followed by apartments at 95.7% and industrial at 94.5%. Office properties trailed with 85.3% occupancy—the only sector below 90%.
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REITs Keep Debt Under Control
REITs managed their balance sheets with care in Q3. Most of their debt—about 81%—was unsecured, and nearly 89% came with fixed interest rates. These choices helped protect REITs from interest rate changes and supported stable REIT performance.
Other debt stats include:
- Leverage ratio: 32.9% (debt-to-market assets)
- Interest expense to NOI ratio: 22.7%
- Average debt maturity: 6.2 years
- Average interest rate: 4.1%
These numbers show that REITs are using long-term, stable financing rather than risky short-term debt.
Steady Growth Outlook
In Q3, REITs made $4.7B in net acquisitions. While not aggressive, this shows continued interest in growth through selective investments.
Looking ahead, REITs appear well-positioned. Their steady income, low debt, and high occupancy put them in a strong spot for 2026.
Nareit’s T-Tracker®—which measures FFO, NOI, and dividends—confirms the industry’s healthy momentum. As economic conditions shift, REITs may continue to offer steady income and portfolio stability to investors.
