WASHINGTON, D.C. (May 18, 2026) – REITs posted record high funds from operations (FFO) and net operating income (NOI) in the first quarter while maintaining robust balance sheets, according to Nareit’s REIT Industry Tracker released today.
“Record results in an uncertain and unpredictable macro environment reflect the strength of REIT fundamentals and disciplined balance sheet management,” said John Worth, EVP of Research & Investor Outreach at Nareit. “With transaction activity picking up, REITs have the capital and flexibility to act on opportunities in the market.”
Year-over-Year Increases in FFO and NOI Highlight REITs’ Resilience
The REIT Industry Tracker data show that FFO reached $21.8 billion—a 14.8% year-over-year increase. Meanwhile, NOI reached $31.3 billion, which is 5.6% higher than last year, with the following sectors having the largest year-over-year increases:
- Data centers (15.8%)
- Health care (13.6%)
- Retail (9.2%)
- Lodging/Resorts (7.1%)
In addition, same-store NOI experienced a 3.8% year-over-year gain, demonstrating that REIT operations continued to outpace inflation in the first quarter, which was 3.3%.
Solid Occupancy Rates Underscore Demand for REIT Assets
Occupancy of total REIT-owned properties was 93.2%, according to the REIT Industry Tracker. Gaming led (100%), followed by specialty (98.5%), retail (97.2%), diversified (95.9%), apartments (95.8%), industrial (93.2%), and self-storage (86.9%).
Strong Balance Sheets Provide Flexibility and Opportunity
REITs continue to operate from a position of financial strength with robust balance sheets, characterized by well-structured debt; about 83% of REITs’ total debt was unsecured, while approximately 89% of listed REITs’ total debt was at a fixed rate. In addition:
- Leverage was low with debt-to-market assets at about 35%.
- Weighted average interest on total debt was 4.1%.
- Weighted average term to maturity of REIT debt was a little less than 6 years.
This balance sheet strength is more important than ever because it is giving REITs both the flexibility to navigate ongoing uncertainty and the ability to pursue accretive growth opportunities as transaction activity increases.
For more data on REITs’ operational fundamentals, please read the complete Q1 2026 REIT Industry Tracker.