WASHINGTON, D.C. (March 9, 2026) – New data from the fourth quarter of 2025 show that REITs had notable gains in net operating income (NOI)—6.3% year over year, according to the Nareit Total REIT Industry Tracker Series report released today. More than 75% of REITs reported year-over-year increases in NOI. Notably, same store NOI was up 3.7%, underscoring that REIT net income is keeping pace with inflation.
“These results underscore the fundamental strength of the listed REIT industry,” said John Worth, executive vice president of research and industry outreach at Nareit. “Solid NOI growth, high occupancy rates, and impressive balance sheets show that REITs are operating from a position of stability and resilience. With strong access to capital and disciplined leverage, the industry is well‑positioned to capitalize on accretive growth opportunities as market conditions evolve in 2026.”
Balance Sheets Stay Strong
Fourth quarter 2025 data show that REITs continue to maintain well-structured debt—89% of listed REITs’ total debt was at a fixed rate while 80% of their total debt was unsecured. In addition, on average:
- Leverage ratios were low with debt-to-market assets at 36%.
- Weighted average term to maturity of REIT debt was about 6 years.
- Weighted average interest rate on total debt was 1%.
Solid Occupancy Rates Add to Sound Operational Fundamentals
In addition, the average occupancy for all equity REITs was 93%. Average occupancy levels were higher year over year for each of the traditional sectors with a notable increase in office occupancy rates versus last quarter:
- Retail: 97%
- Industrial: 95%
- Apartments: 96%
- Office: 87%
Isolated Events Play Role in Modest FFO Decrease
At the industry level, funds from operations (FFO) for all equity REITs was $19.8 billion, representing a modest decrease of 3% year over year. That decrease is due to a limited number of constituents and is not indicative of underlying industry performance. When FFO is adjusted for isolated one-time events with these constituents, including impairments and general and administrative expenses, FFO is comparable to NOI growth, year over year.
For more data, please read the complete Q4 2025 Nareit REIT Industry Tracker report.