Following strong Q3 results, REITs enter 2026 with high occupancy, steady income growth, and well-managed debt — but portfolio visibility will matter more than ever.
U.S. REITs posted another strong quarter in Q3 2025, continuing a trend of operational resilience despite a still-shifting economic backdrop.
According to the latest data, Funds From Operations (FFO) rose 17.3% year-over-year, reaching $21B. Nearly two-thirds of REITs saw FFO gains — a notable reversal from the tougher 2024 environment.
Net Operating Income (NOI) also strengthened, climbing 5.2% YoY to $30.6B. Same-store NOI grew 2.8%, underscoring steady internal performance across multiple property types.
Nareit’s EVP of Research, John Worth, summarized it well:
“These strong results show that REITs are ready to take advantage of new growth opportunities in 2026.”
Average REIT occupancy landed at 93%, with retail leading the way at an impressive 96.9%. Apartments followed at 95.7%, and industrial posted 94.5%.
Office remained the exception at 85.3%, confirming ongoing demand challenges — though still stable relative to recent years.
High occupancy continues to provide a reliable foundation for portfolio income entering 2026.
REIT balance sheets remained conservative in Q3:
80.6% unsecured debt
88.7% fixed-rate
Average maturity: 6.2 years
Leverage ratio: 32.9%
Average interest rate: 4.1%
This structure shields REITs from short-term rate fluctuations — a key advantage during periods of market recalibration.
REITs recorded $4.7B in net acquisitions during Q3. While not aggressive, this reflects ongoing commitment to strategic, targeted growth rather than broad expansion.
Nareit’s T-Tracker® confirms the trend: the sector remains fundamentally stable and well-positioned for the next cycle.
Strong income. High occupancy. Well-managed debt.
These are the building blocks of resilience — but the next year will still require:
Better visibility into NOI drivers
Scenario-based reforecasting
Clear tracking of maturity schedules
Portfolio-wide reporting clarity
In other words: stability doesn’t mean “set it and forget it.”
It means it’s time to sharpen execution.
Kardin gives REIT owners, operators, and asset managers tools to:
✔ Build rolling reforecasts
✔ Track NOI and occupancy trends at the property and portfolio level
✔ Manage debt assumptions and maturity timing
✔ Produce investor-ready reporting without spreadsheet sprawl
As REITs enter a potentially opportunistic 2026, clarity and discipline will matter more than ever.
👉 Learn how Kardin helps REIT teams translate complexity into insight: