Nigerian listed Real Estate Investment Trusts (REITs) reported a rental income of N2.26 billion for the fiscal year 2024, driven by rising occupancy rates and sustained demand, according to BusinessDay analysis.
The surveyed REITs which include; UH REIT, SFS REIT, and UPDC REIT, this is a 5.12 percent increase from N2.15 billion in 2023. And in 2022 they collectively earned N1.93 billion in rental income.
Real Estate Investment Trusts (REITs) are publicly traded companies designed like mutual funds, which own, manage, or finance income-generating real estate assets. They typically own a range of commercial real estate, including office buildings, shopping malls, apartments, hotels, and warehouses.
The trusts utilise pooled capital from numerous investors to acquire and manage income-producing properties and mortgage loans. Typically, there are three types of REITs, equity REITs, mortgage REITs, and hybrid REITS.
Currently, there are only equity REITs in Nigeria. And during the year, UPDC REIT led in rental income, earning N1.44 billion.
A report by Augusto & Co in 2024 showed that the commercial real estate sector faced mixed performance. Lagos, Abuja, and Port Harcourt remained the primary hubs for Grade A office spaces, although demand slowed due to the increased adoption of hybrid work models and cost-cutting measures by corporate tenants.
On the other hand, the report said the retail sector recorded growth, supported by increased consumer spending in shopping malls and e-commerce hubs.
“Mall revenues expanded by 9.4 percent, with Lagos retail centres averaging 70 percent occupancy. The residential property market experienced steady demand, particularly for affordable and mid-income housing. Lagos, Abuja, and major urban centres saw increased housing developments, with a 12 percent rise in completed housing units compared to 2023,” it said.
According to the Nigeria Bureau of Statistics (NBS), In 2024, the Real Estate Sector grew by 0.79 percent compared to 1.68 percent in 2023. The sector also contributed 5.45 percent to real GDP in 2024, compared to 5.59 percent in 2023, amid a mix of macroeconomic challenges, including infrastructural deficits, currency depreciation, and rising construction costs.
Nigeria’s infrastructure deficit requires about $3 trillion over the next 30 years to address the infrastructural gap while rising import costs continually inflate construction expenses.
Waning economic performance has led to unfavorable business conditions and a decline in FDI which has curtailed the availability of capital for real estate and construction projects, estimates still put the value of the Nigerian Real Estate Market at about $2.14trillion in 2024, with residential real estate accounting for $1.77 trillion.
Cities like Lagos, Abuja, and Port Harcourt remained the prime markets in the Real Estate space in 2024.
Read also: Real Estate 2025 outlook
Which stock performed well?
SFS REIT had a significant and consistent upward trend, the fund was in January 2024 with a share price of N101.38. It closed the financial year with N179.45, recording 77 percent capital appreciation on the floor of the Nigeria Stock Exchange. As of April 11, 2025, the company’s share price is currently at N206.
UPDC REIT on the other hand experienced a decline overall, reaching a low of ₦4.20 in May 2024. There was some recovery toward the end of 2024 and into early 2025 (peaking at N6.30 in Feb 2025), but it dropped again in March 2025. As of April 11, 2025, the company’s share price is currently at N5.6.
For UH REIT, the stock had a flat trend throughout 2024, consistently at ₦36.60 from January to December. A notable surge began in Feb 2025 (N44.25), continuing to March (N51.25), signaling a late but sharp growth in early 2025. As of April 11, 2025, the company’s share price is currently at N46.15.
Analysis of individual firms;
UPDC REIT
The UPDC REIT Fund demonstrated robust performance across its diversified portfolio of mixed-use assets in Lagos during the 2024 fiscal year.
A notable achievement was the consolidated occupancy rate’s expansion to 96 percent, representing a significant improvement from 83 percent in 2023, with proactive lease renewal management and retrieval of outstanding rents contributing to this success.
The REIT achieved revenue growth, with gross revenue reaching N5.47 billion in 2024, marking a 25 percent increase from N4.37 billion in 2023.
In 2024, UPDC REIT generated N1.44 billion in rental income on its managed properties, up from N1.43 billion in 2023.
The UPDC REIT, created by UPDC in 2013, is managed by Stanbic Asset Management Limited. Currently, the fund manages Abebe Court, Ikoyi Lagos. Victoria Mall Plazas 1 and 2 in Victoria Island. Pearl Hostel within Pan-Atlantic University, Ibeju Lekki. UAC Commercial Complex, Abuja, Kingsway Building, Marina, Lagos, and Project Stack, Lagos.
UH REIT
The UH Real Estate Investment Trust Fund (“UH REIT” or “the Fund”) generated gross revenue of N1.28 billion in 2024 compared to N884 million in 2023, attributable to higher rental income, property disposal and interest income.
Net Income had crossed the N1 billion mark by year end to close at N1.05 billion, up 59.29 percent from the preceding year at N656.13 million while the company’s rental income rose to N681 million from N531.3 million.
At N5.56, Earnings per Share in 2024 is also higher than in 2023 by 59.31 percent, which was posted at N3.49. The REIT has a proposed dividend of N5.05 for the year ended 2024 compared to N3.15 in 2023
UH REIT received rent from a portfolio of properties across Lagos and Abuja, including McDonald Court, Block 4-6 McDonald. Road Ikoyi, Lagos. Amina Court. Savannah Court. 9, Mike Akhigbe Way, Abuja. Plot 3, Block A4, Olusegun Aina Street, Ikoyi. 28A, Rumen Property, and Locke apartments
SFS REIT
SFS REIT is managed by SFS Capital Nigeria Limited, and in 2024, it posted a rental income of N205 million from N190 million. The trust posted a total income of N554 million, as it recorded an interest income of N176.5 million. The REIT’s net income from 2024 was a 50.4 growth from the N317 million net income posted in 2023.
It is worth noting that the assets held by the REIT are located in prime areas. This advantageous positioning enables the REIT to increase rental charges or lease rentals with minimal resistance.
Victory Park Estate, located in Igbokushu, Lekki-Lagos with 12 units. Milverton Court Estate, located in Osapa, Lekki-Lagos with 17 units. Sapphire Gardens Estate is located in Awoyaya, Lekki-Lagos with 6 units. Bourdillion Court Estate, located in Chevron dr, Lekki-Lagos with 8 units. Harold Shodipo, located in G.R.A Ikeja, Lagos with 6 units, and Maccido Royal Gardens Estate, located in Galadinmawa, Abuja with 2 units.
Outlook for 2025
Following a GDP rebasing, real estate now ranks third in terms of GDP contribution, this reflects the sector’s growing strategic importance in the national economy.
After the likes of crop production and trade, which hold the first and second positions, respectively.
Festus Adebayo, executive director of the Housing Development Advocacy Network, stated that real estate will continue to play a significant role in Nigeria’s GDP growth.
“This shift reflects the growing importance of the real estate sector in the country’s economy,” Adebayo noted, emphasising the need for strategic policies to sustain this growth.
It is worth noting that Nigeria’s 2025 real estate outlook reveals a market poised for substantial growth, projected to reach $2.61 trillion according to Statista, driven by rapid urbanisation and a significant housing deficit.
Also, the housing supply is expected to grow by 5 percent due to financing and construction issues.
The Honourable Minister of Housing and Urban Development has indicated that 10,122 of the 20,000 houses targeted under the Renewed Hope Cities and Estates Programme will be available by year-end, providing some succor. Lagos, Abuja, and Port Harcourt are expected to remain at the fore.
In Lagos, urbanisation, investments from abroad and economic opportunities continue to fuel demand.
According to the notes of UH REIT financial statement, property prices are expected to spike by 15 percent in 2025, with projects like the Eko Atlantic and Lekki Free Trade Zone which hosts Dangote Refinery and Lekki Deep Seaport among others, driving demand for affordable housing in the hinterlands of Epe and Ibeju Lekki. High-brew areas like Ikoyi, VI and Lekki are favorites for luxury housing and short lets.
“Generally, rents could rise by 10-30 percent annually in 2025,” it said.
