Nareit’s Total REIT Industry Tracker Series – the Nareit T-Tracker– is the first quarterly performance measure of the heartbeat of the U.S. listed REIT industry. The series includes three key REIT industry measures: the Nareit FFO Tracker, which monitors equity REIT Funds From Operations; the Nareit NOI Tracker, which reports the equity REIT industry’s Net Operating Income; and the Nareit Dividend Tracker, which monitors the dividends U.S. listed equity and mortgage REITs pay to their shareholders.
Key Takeaways for T-Tracker 2022 Q3
- FFO increased to $19.9 billion in the third quarter of 2022—a 14.9% increase from one year ago.
- 81% of REITs reported increases in FFO year-over-year, including
- Lodging/resorts FFO up 125.6%
- Specialty up 32.9%
- Industrial up 30.9%
- Self storage up 27.1%
- Residential up 19.9%
- Retail up 19.9%
- Infrastructure up 10.5%
- NOI was $27.7 billion—an 8.1% increase from a year ago.
- Same Store NOI was $11.8 billion—a 7.1% increase over the past four quarters.
- REITs remain well-prepared for a period of higher interest rates:
- Leverage ratios were near historic lows with debt-to-market assets at 34.5%.
- Fixed rate debt accounted for 82.6% of total debt.
- Interest coverage increased to 6 times.
- Net interest expense as a percent of NOI was near its historic low at 18.9%
- Weighted average term to maturity of REIT debt was more than 7 years—or 84 months.