Rent Growth

Rent growth is the percentage change in rent over a stated period. REITs may report growth for new leases, renewals, same-store properties or the overall portfolio, so the basis matters.

A simple example

If comparable annual rent rises from $1,000 to $1,050 for the same space, rent growth is 5%. The REIT still needs to collect the rent and pay property expenses.

Why this matters to income investors

Rent growth can raise property revenue and net operating income, but its effect depends on occupancy, concessions, operating expenses and lease timing.

How to use rent growth in your research

Identify the property set and period, distinguish contractual escalators from market rent changes, and review occupancy and expenses alongside the reported rate.

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