REIT Earnings Season Q3 2025: The Standouts, the Stumbles, and the Shockwaves

REIT Earnings Season Winners

Beginning with the Winners of REIT Earnings Season, Industrial REITs were the upside standout, with results showing a surprising rebound in logistics leasing activity after a tariff-related pause. 

Senior Housing REITs—the perennial performance leaders—reported another stellar quarter, highlighted by frenzied acquisition activity from Welltower. Data Center REITs continued to prove they could hang with the tech “big boys” amid the AI boom, maintaining near-zero vacancy and impressive pricing power. 

Net Lease REITs accelerated their pace of acquisitions as cap rates ticked higher, resulting in increasingly attractive investment spreads. Strip Center and Mall REITs posted another strong quarter of near-record occupancy and double-digit rent spreads, pushing back on concerns over cracks in retail fundamentals.

Favorable expense controls helped Single-Family Rental and Manufactured Housing REITs deliver solid FFO and NOI growth despite continued sluggishness in rent trends across many markets. 

Billboard REITs also impressed, showing a rebound in ad spending from national brands. Below, we note the top-25 performing REITs and homebuilders this earnings season.

Industrial: (Final Grade: A)

Positives: Reacceleration in leasing volume and rent spreads following a tariff-related pause, Improvement in the sluggish Southern California market, Tenant recognition of the need for supply chain diversification.

Negatives: Market rent growth still negative (-4% in 2025 after -7% in 2024), with inflection not expected until 2H26, Smaller tenants still delaying major lease decisions, PLYM's sale at a discount to prior offer.

Best Performers: Prologis (PLD), First Industrial (FR)

Worst Performers: Plymouth (PLYM), Industrial Logistics (ILPT)

Senior Housing & Skilled Nursing: (Final Grade: A)

Positives: Stellar senior housing fundamentals, Welltower's massive M&A activity (market cap has increased 5x in the past half-decade), Improved Skilled Nursing tenant health (OHI rent coverage at 12-year highs).

Negatives: Softer/flat trends in non-SHOP segments, Accelerated push into the U.K. market suggests limited attractive U.S. M&A opportunities, CTRE trims FFO/share guidance on timing of $750M equity raise.

Best Performers: American Healthcare (AHR), Welltower (WELL)

Worst Performers: National Health Investors (NHI), LTC Properties (LTC)

Data Center: (Final Grade: A-)

Positives: Robust AI-related demand fuels impressive pricing power & smaller enterprise/colocation leasing volume, EQIX's initial guidance sees 5%+ FFO growth in 2026, IRM's dividend hike, and Fermi's strong IPO.

Negatives: Capacity constraints—cannot build them fast enough. Slower hyperscale leasing volume (primarily due to zero availability) is impacting DLR and IRM. Additionally, FX headwinds are arising from recent dollar strength.

Best Performer: Equinix (EQIX)

Worst Performers: Digital Realty (DLR), Iron Mountain (IRM)

Strip Centers: (Final Grade: A-)

Positives: No signs of major leasing slowdown despite negative sentiment, Occupancy rates remain near record-highs, Double-digit leasing spreads for the 14th-straight quarter, Wave of a half-dozen dividend hikes.

Negatives: Some short-term occupancy headwinds from recent bankruptcies (Rite Aid), Large-scale M&A limited by stock price underperformance in 2024 & 2025 despite very strong (record-setting) fundamentals.

Best Performers: Whitestone (WSR), Kite Realty (KRG)

Worst Performers: Alexander & Baldwin (ALEX), Kimco (KIM)

Regional Mall: (Final Grade: B+)

Positives: Upper-end consumer remains strong and still spending, Tanger's record-high leasing volumes, Simon's dividend hike—14th since 2020 (now above 2019-level), CBL continues to recover post-bankruptcy.

Negatives: Flat foot traffic trends, Softness in the lower-end consumer & lower-tier properties, Occupancy headwind from Forever 21 bankruptcy, Some execution risk for MAC (Path Forward Plan) & SPG (Taubman integration).

Best Performers: CBL & Associates Properties (CBL), Tanger (SKT)

Worst Performer: Simon Property (SPG)

Billboard: (Final Grade: B+)

Positives: Rebound in ad spending among national advertisers, Big outperformance in transit segment (led by New York MTA), Continued benefit from digital billboard conversions, Stronger segments: tech, travel, legal.

Negatives: Softness in local and regional ad spending—weighing on the static billboard segment, Tough comps from political spending last year, Weaker segments: restaurants, real estate, nonprofit.

Best Performer: OUTFRONT Media (OUT)

Worst Performer: Lamar (LAMR)

Net Lease: (Final Grade: A-)

Positives: Reacceleration in acquisition activity as investment spreads become more accretive (highest since pre-pandemic), Steady free-standing retail fundamentals, Particularly impressive small & mid-cap reports.

Negatives: EPR's delay in $200M Resorts World Catskills sale, Typical mix of tenant-specific issues in softer segments, Emerging competition from renewed private equity interest (Starwood, Blackstone) in net lease space.

Best Performers: Getty Realty (GTY), Alpine Income (PINE)

Worst Performers: EPR Properties (EPR), Safehold (SAFE)

Single Family Rental: (Final Grade: B+)

Positives: Favorable expense controls (modest insurance and property tax increases), Renewals remain buoyant and keeping blended spreads at the "inflation-plus" level, INVH share buyback, Midwest strength.

Negatives: Deceleration in new lease rates across all regions, Sequential occupancy decline and uptick in turnover, Sunbelt softness amid oversupply, Frustration with low stock price relative to premium private market values.

Best Performer: Invitation Homes (INVH)

Worst Performer: American Homes (AMH)

Manufactured Housing: (Final Grade: B+)

Positives: Core manufactured housing portfolio continues to outperform, Solid mid-single-digit rent increases expected in 2026, Sun getting its "mojo" back as U.K. portfolio stabilizes, Unusually quiet U.S. hurricane season.

Negatives: RV segment remains very weak - especially from Canadians (-40% dip in seasonal demand), Still quiet on the domestic M&A front, Softness in lower-end consumers will weigh on the ability to push rents.

Best Performers: Sun Communities (SUI), UMH Properties (UMH)

Worst Performer: Equity LifeStyle (ELS)

Residential Mortgage REITs: Final Grade: B+

Positives: Best quarter of Book Value Per Share and EPS increases since pre-pandemic, led by agency-focused mREITs, Much improved dividend coverage after 80%+ Q/Q increase in EPS, RPT pursues possible sale.

Negatives: TWO's hit from litigation settlement (as expected), Softness from non-agency credit-focused and MSR-focused mREITs, Commentary from RITM indicating "no desire" to raise its dividend given accretive opportunities.

Best Performers: AG Mortgage (MITT), Annaly Capital (NLY)

Worst Performers: Chimera (CIM), Redwood (RWT)

REIT Earnings Season Losers

Onto the losers and laggards of REIT earnings season, Lab Space REIT Alexandria stole the show for all the wrong reasons this earnings season, reporting the lone "bombshell" report, warning of "2026 Considerations" that indicated a 25-30% decline in FFO in 2026, effectively erasing its sector-leading cumulative 30% growth from 2020-2024.

Elsewhere, Cold Storage REITs were losers for a second straight earnings season, with both names reporting disappointing results, citing a multitude of headwinds, including weak inventory builds from food suppliers and soft pricing power from overcapacity, and warning that it'll get even worse in 2026.

Apartment REITs indicated that rent growth stalled—and reversed in many markets—after an early-year acceleration, but positive trends on the expense front helped to offset revenue headwinds.

Results from Self-Storage REITs were also modestly disappointing, with demand stuck in neutral amid historically low moving rates.

Elsewhere, Cell Tower REITs were impacted by the effects of carrier consolidation as Dish effectively abandoned its pursuit of becoming the fourth major carrier.

Results from Hotel REITs indicated worries over the impact of the now-resolved shutdown. Office REITs reported strong leasing volume and signs of bottoming in occupancy rates, but also some lingering pockets of weakness on the West Coast. Below, we note the bottom-25 performing REITs and homebuilders this earnings season.

Cold Storage (Final Grade: C)

Negatives: Downward revision from LINE, citing tariff uncertainties. COLD sees an even more challenging 2026, citing further pressure on both pricing and economic occupancy as customers continue to manage inventory tightly.

Positives: COLD maintains guidance for 2025. New leasing volume has been a bright spot but is offset by reductions in the base business and churn.

Worst Performers: Americold (COLD), Lineage (LINE)

Medical Office/Lab Space: (Final Grade: C+)

Negatives: Bombshell report from Alexandria (forecasting a 25% FFO dip in 2026) with an expected dividend cut, Significant lab space oversupply as the biotech boom fizzles, Dependent on lower rates to spark a return to growth.

Positives: Stabilization at MPW and sizable new stock buyback, Steady Medical Office Building ("MOB") leasing volume & rent spreads, Strong start at HR and GMRE for new management team.

Best Performers: Universal Health (UHT), Community Healthcare (CHCT)

Worst Performers: Alexandria (ARE), Healthpeak (DOC)

Commercial mREITs: (Final Grade: C+)

Negatives: Renewed concern (and short seller interest) regarding the CLO portfolio of Arbor on a spike in delinquency from the accelerated resolution strategy, Ready Capital warns of dividend reduction.

Positives: Few new major credit issues, Larger PE-sponsored mREITs (BXMT, TRTX, KREF) pivoting to offense as CRE debt sentiment improves.

Best Performers: Ares Commercial (ACRE), BrightSpire (BRSP)

Worst Performers: Arbor Realty (ABR), Ready Capital (RC)

Self-Storage REITs: (Final Grade: C+)

Negatives: Occupancy rates remain under pressure, Home moving rates (which drive storage demand) are still historically low, Still dealing with pockets of oversupply (especially in the Sunbelt) after the COVID-era development boom.

Positives: New lease rates ("Street Rates") finally stabilized after 12 quarters of declines, Favorable expense controls (modest advertising, labor, and property taxes), Signs of recovery from NSA after a rough 2022-2024.

Best Performer: National Storage (NSA)

Worst Performer: Extra Space Storage (EXR), Public Storage (PSA)

Apartment: (Final Grade: B-)

Negatives: New lease rent trends worsen (-2.2%) after rebound in early 2026, Softness spreads from Sunbelt to Mid-Atlantic and West Coast, Early signs of immigration impact on demand (especially at lower-tier).

Positives: Renewal rent growth (+3.6%) still holding up, Favorable expense control trends (moderate property tax and insurance increases), Three REITs (CSR, ELME, AIV) exploring a sale to maximize shareholder value.

Best Performers: Centerspace (CSR), Veris Residential (VRE)

Worst Performers: AvalonBay (AVB), Mid-America (MAA)

Hotel (Final Grade: B-)

Negatives: Government shutdown was beginning to have a material impact on travel demand (especially government workers), Softer group demand in Q3, Mid-tier & economy segments are clear soft spots.

Positives: Outperformance in upper upscale and luxury segments, Favorable expense controls (labor productivity), Strong valuation on SOHO's private equity buyout, Tailwinds from asset-specific renovations and property sales.

Best Performers: Sotherly Hotels (SOHO), DiamondRock (DRH)

Worst Performers: Service Properties (SVC), Park Hotels (PK)

Casino: (Final Grade: B)

Negatives: Lingering concerns over Las Vegas weakness (visitor traffic down 5-8% y/y), Vegas weakness primarily due to steep dip in inbound international tourism (Canada especially), Minor delays in GLPI's Chicago development

Positives: Steady FFO guidance hikes driven by mid-sized M&A deals (VICI buys Golden Entertainment portfolio, GLPI buys Live Virginia & Sunland Park), GLPI notes tribal opportunity, VICI sees push into university sports.

Best Performer: Gaming and Leisure Properties (GLPI)

Worst Performer: VICI Properties (VICI)

Cell Tower: (Final Grade: B)

Negatives: Material hit from DISH/Echostar sellout with pending legal fight over lease obligations (6% of CCI, 4% of SBAC, 2% of AMT revenues), Significant growth continues in direct-to-cell satellite service.

Positives: Guidance boosts on cost savings, Strong quarter from SBAC on announced agreement with Verizon, AMT's international and data center outperformance, healthy carrier activity from the remaining "big three."

Best Performer: SBA Communications (SBAC)

Worst Performer: Crown Castle (CCI)

Office: (Final Grade: B)

Negatives: Leasing spreads still flat-to-negative, West Coast (HPP, DEI) disappoints after early-year rebound, Delays in government leasing amid shutdown, NYC sentiment softens amid Mamdani concerns.

Positives: Best quarter of leasing volume since the mid-2010s (led by NYC), Occupancy rates finally bottoming in most markets, Continued Sunbelt outperformance (CUZ, HIW), Office mandates build further momentum.

Best Performer: Kilroy Realty (KRC), COPT Defense (CDP)

Worst Performer: Douglas Emmett (DEI), Hudson Pacific (HPP)

Earnings Recap: Too Cheap for Too Long?

Overall, REIT earnings results were marginally better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balanced mix of sectors.

Two-thirds of the sector (67 REITs) raised their full-year FFO outlook—above the historical average of 65%. Notable winners included Industrial, Senior Housing, Data Center, Retail, and Billboard REITs.

Lab Space REIT Alexandria shocked with a major flop, and Cold Storage REITs disappointed again. Apartment rents stalled, Cell Towers faced carrier fallout, and Hotel REITs flagged shutdown-related weakness. But have REITs been "too cheap" for too long?

The persistent public REIT underperformance has fueled a "REIT Exodus," with a recent accelerated wave of buyouts, asset sales, and strategic reviews underway. And while these REITs should be commended for pursuing the path that maximizes shareholder value, investors are seeing the investible universe shrink and more assets pulled out of the public markets—an unfortunate byproduct of REITs being "too cheap" for too long.

About the Author

David Auerbach boasts over two decades of experience in the securities industry, specializing as an institutional trader with a focus on Real Estate Investment Trusts (REITs), Equity and Preferred stocks, MLPs, ETFs, and Closed End Funds.

Based in Dallas, TX throughout his entire career, David currently serves as the Chief Investment Officer for Hoya Capital, managing the Hoya Housing 100 ETF (Ticker: HOMZ) and The High Yield Dividend ETF (Ticker: RIET). Previously, David held the position of Managing Director at Armada ETF Advisors, the sub-advisor for the Residential REIT ETF (Ticker: HAUS) and The Private Real Estate Strategy via Liquid REITs ETF (Ticker: PRVT).

Additionally, he acts as a consultant with IRRealized, LLC, focusing on corporate access in the REIT industry. David's industry journey includes roles at World Equity Group, Esposito Securities, and Green Street Advisors where he got his start in the REIT industry.

At Esposito Securities, he played a crucial role in building the REIT/Real Estate platform and worked extensively with institutional investors, Equity REITs, and ETF issuers.

Throughout his career, David has been quoted by reputable publications such as Bloomberg, WSJ, Financial Times, REIT.com, and GlobeSt.com. He has also made notable appearances as a featured guest on networks like Yahoo Finance, TD Ameritrade, and Bloomberg.

David holds a BBA in Finance from the University of Texas at Austin (May 1999) and an MBA in Finance from Southern Methodist University (May 2005). He maintains FINRA Series 7, 24, 55, and 63 registrations.

In his leisure time, David is an avid traveler, often found crisscrossing the country in pursuit of attending as many Phish concerts as possible.

Disclaimer

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.