National + Finance | November 17, 2023

Nareit: REIT Finances Remain Healthy

New third-quarter data show that REITs continue to have well-structured debt, according to the Nareit Total REIT Industry Tracker Series report. Seventy-nine percent of REITs’ total debt was unsecured, while 91% of listed REITs’ total debt was at a fixed rate,

Q3 2023 data also show that REIT balance sheets are solid and well-positioned for economic and capital market uncertainty, Nareit said. On average, leverage ratios remained modest with debt-to-market assets at 36.2%, while the weighted average term to maturity of REIT debt was 6.5 years and the weighted average interest rate on total debt was 4.0%

“REITs’ balance sheets are in good shape, largely because REITs continue to exercise great discipline in managing them,” said John Worth, Nareit EVP of research & investor outreach. “That discipline, combined with REITs’ ongoing solid operational performance, is enabling REITs to navigate tighter credit conditions and the ongoing high interest rate environment.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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