The United States Postal Service (USPS) has used the slogan, “We Deliver for You.” The same can be said for U.S. public equity REITs. Although the economic, financial, and property markets have experienced considerable changes over the last few years, REIT operational performance has maintained resilience.
Recent data from Nareit’s REIT Industry Tracker show that, on average, REITs have continued to deliver solid year-over-year net operating income (NOI) and same store NOI (SS NOI) growth rates for their investors.
The chart above presents quarterly year-over-year NOI and SS NOI growth rates for U.S. public equity REITs from the second quarter of 2024 to the second quarter of 2025. Note that the year-over-year NOI growth rates help account for seasonality in the data, but they do not control for REITs’ transaction activities. Also, while SS NOI is typically viewed as providing a cleaner, apples-to-apples comparison, not all REITs report it. This metric is only available for seven of 13 sectors in Nareit’s REIT Industry Tracker.
In an environment characterized by moderating inflation, elevated 10-year Treasury yields, divergent public and private real estate valuations, and new trade policies, REITs have still been able to post solid operational performance. As of the second quarter, the equity REIT year-over-year NOI and SS NOI growth rates were 4.8% and 2.7%, respectively. More than 60% of REITs posted positive year-over-year NOI growth rates while almost 60% had year-over-year SS NOI gains.
Using data from Nareit’s REIT Industry Tracker, the chart above exhibits year-over-year NOI growth rates for the equity REIT sectors in the second quarter. The range between the top- and bottom-performing sectors was wide; it approached 40%. Eight of 13 sectors posted positive NOI growth rates. Industrial, specialty, and health care had double-digit NOI percentage gains. Office, lodging/resorts, diversified, and telecommunications posted more modest losses; timberland was the sector with the weakest operational performance.
The chart above displays year-over-year SS NOI growth rates for REIT sectors with available data in Nareit’s REIT Industry Tracker for the second quarter of 2025. It also presents seasonally-adjusted year ago inflation rates from the Consumer Price Index for All Urban Consumers (CPI).
Four sectors (health care, retail, industrial, and residential) realized SS NOI growth rates that were greater than or near inflation. Three sectors (diversified, office, and self-storage) posted modestly negative percentage changes across four quarters. Across the examined REIT sectors, the average SS NOI growth rate was 2.7%; a level akin to inflation.
While the USPS has no official motto, the following phrase that is engraved on the front of the James A. Farley Post Office in New York City has often been cited as its unofficial motto:
“Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.”
Just as U.S. postal workers have reliably and dependably delivered mail under a variety of conditions, REITs too have continued to deliver solid operational performance to their investors throughout challenging market changes. This is a testament to REITs’ asset selection and management expertise.