WASHINGTON, D.C. (Nov. 13, 2025) – REITs posted solid funds from operations (FFO) in the third quarter of 2025 and maintained strong balance sheets with well-structured debt, according to Nareit’s quarterly REIT Industry Tracker released today.
“REITs continued to deliver solid operating performance during a tumultuous year,” said Nareit Executive Vice President of Research and Investor Outreach John Worth. “The strong operational results and well-managed balance sheets that are evident in this quarter’s results reinforce our view that REITs are well-positioned to capitalize on accretive growth opportunities as they emerge in 2026.”
Year-over-Year Increases in FFO and NOI Highlight REITs’ Operational Resilience
The REIT Industry Tracker data show that FFO reached $21.0 billion—up 17.3% year over year. Almost two-thirds of REITs reported an increase in FFO. The large percentage increase reflects strong operating performance in the third quarter of this year and a healthy rebound from isolated currency and company level operational losses that depressed FFO one year ago.
Meanwhile, net operating income (NOI) reached $30.6 billion, which is 5.2% higher than last year, and nearly 62.0% of REITs reported an increase in NOI from one year ago. In addition, same-store NOI experienced a 2.8% year-over-year gain.
Strong Occupancy Rates Add to REITs’ Sound Operational Fundamentals
Occupancy of total REIT-owned properties averaged 93.0%, according to the REIT Industry Tracker. Retail led occupancy rates (96.9%), followed by apartments (95.7%), and industrial (94.5%). Office was the only sector below 95.0%, coming in at 85.3%.
Balance Sheets Continue to Have Well-Structured Debt, Low Levels of Leverage
REITs maintained strong balance sheets characterized by well-structured debt; 80.6% of REITs’ total debt was unsecured, while 88.7% of listed REITs’ total debt was at a fixed rate. In addition, on average:
- Leverage ratios were low with debt-to-market assets at 32.9%.
- Interest expense to NOI ratio was also low at 22.7%.
- Weighted average term to maturity of REIT debt was 6.2 years.
- Weighted average interest rate on total debt was 4.1%.
For more data on REITs’ operational fundamentals, please read the complete Q3 2025 REIT Industry Tracker.