New Data Show Strong Net Operating Income and Solid Balance Sheets Amid Market Uncertainty

WASHINGTON, D.C. (Aug. 14, 2025) - New data from the second quarter of 2025 show that REITs had notable gains in net operating income (NOI)-4.8% year over year, according to the Nareit Total REIT Industry Tracker Series (T-Tracker^®) report released today. More than 61% of REITs reported year-over-year increases in NOI. Notably, same store NOI was up 2.7%, underscoring that REITs are keeping pace with inflation.

"Amid ongoing market uncertainty, REITs posted impressive net operating income," said Nareit Executive Vice President of Research & Investor Outreach John Worth. "When combined with their strong balance sheets, these results highlight REITs' operational excellence while giving investors confidence that REITs are well-positioned to seize growth opportunities when market certainty and transactions increase."

Balance Sheets Remain Solid Amid Higher Long-Term Interest Rates

Second quarter 2025 data show that REITs continue to maintain well-structured debt-89.6% of listed REITs' total debt was at a fixed rate while 80.6% of their total debt was unsecured. In addition, on average:

• Leverage ratios were low with debt-to-market assets at 33.5%.
• Weighted average term to maturity of REIT debt was 6.1 years.
• Weighted average interest rate on total debt was 4.2%.

Foreign Currency Issues Play Role in Modest FFO Decrease

At the industry level, funds from operations (FFO) for all equity REITs was $19.9 billion, representing a modest decrease of 1.1% year over year. That decrease is mostly due to isolated issues at the company level, many of which are related to currency expenses and non-U.S. operations, among other things. A little more than half-or 52.5%-of REITs reported having a year-over-year increase in FFO.

For more data, please read the complete Q2 2025 Nareit REIT Industry Tracker report.

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