Occupancy Rate

Occupancy rate is the proportion of available property space or units that are occupied under the issuer’s stated method.

A simple example

If 90 of 100 comparable apartment units are occupied, physical occupancy is 90%. That figure alone does not tell you whether the tenants are paying rent or whether concessions reduced revenue.

Why this matters to income investors

Empty space can reduce rental income and weaken a property REIT’s dividend support.

How to use occupancy rate in your research

Compare the same properties and periods in the REIT’s reports. Connect changes in occupied space, rents, and lease costs to the earnings measure used to explain the dividend.

This material is general education and information, not individualized investment, tax, or legal advice.