The Idiot Index

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Sector
Capital ExtractionApplied to Real Estate Investment Trusts (REITs) — owners and operators of income-producing real estate. Revenue is rental income, not goods sold, so Markup ratios are not meaningful (no COGS in the traditional sense). REITs are legally required to distribute 90%+ of taxable…
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Capital Extraction in Real Estate · FY 2023

26 of 27 companies · highest first
  1. 1
    VTRVentas
    1214% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 2%
    12.14
    × buybacks+dividends / net income
  2. 2
    ORealty Income
    325% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 6%
    3.2522
    × buybacks+dividends / net income
  3. 3
    WELLWelltower
    277% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 10%
    2.7663
    × buybacks+dividends / net income
  4. 4
    VNOVornado
    231% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 13%
    2.3075
    × buybacks+dividends / net income
  5. 5
    CCICrown Castle
    223% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 17%
    2.2290
    × buybacks+dividends / net income
  6. 6
    EQIXEquinix
    209% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 21%
    2.0850
    × buybacks+dividends / net income
  7. 7
    OHIOmega Healthcare
    182% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Top 25%
    1.8209
    × buybacks+dividends / net income
  8. 8
    IRMIron Mountain
    159% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Median range
    1.5867
    × buybacks+dividends / net income
  9. 9
    SLGSL Green
    136% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Median range
    1.3618
    × buybacks+dividends / net income
  10. 10
    BXPBoston Properties
    135% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 1.1094Median range
    1.3534
    × buybacks+dividends / net income

Not yet covered (1)

These companies are in the Real Estate cohort but don't have a Capital Extraction computed for FY 2023. Either the underlying inputs aren't tagged in their XBRL filings, the DEF 14A pay-ratio narrative didn't parse cleanly, or this fiscal year hasn't been ingested for them yet.

What this measures

Full methodology →

How much of net profit goes to shareholders rather than back into the business.

Ratio
Capital Extraction
Sector
Real Estate
Methodology version
v1.0.0
Formula
(Buybacks + Dividends) / NetIncome
Sector context

Applied to Real Estate Investment Trusts (REITs) — owners and operators of income-producing real estate. Revenue is rental income, not goods sold, so Markup ratios are not meaningful (no COGS in the traditional sense). REITs are legally required to distribute 90%+ of taxable income as dividends to maintain their tax-advantaged status, so the Capital Extraction ratio is structurally near or above 1.0 across the entire sector — the more interesting comparison is Labor Share (REITs run with small workforces relative to revenue) and Executive Extraction. Future methodology versions may add FFO/AFFO-based variants since GAAP Net Income is heavily distorted by depreciation in this sector.

What share of after-tax profit is returned to shareholders rather than reinvested. Universal across sectors — works for banks, insurers, REITs, and utilities where the Shareholder Extraction ratio (which divides by R&D) is undefined. A value of 1.0 means 100% of net income flows back out to shareholders; above 1.0 means the company is funding shareholder returns from sources beyond current-year earnings (debt, retained cash, asset sales).

Source data: PaymentsForRepurchaseOfCommonStock, PaymentsOfDividends, NetIncomeLoss (us-gaap) or ProfitLoss (ifrs-full).