In 2025, SFS REIT has clearly outperformed its peers, delivering the highest returns on both market and financial metrics.
It is a big battle for leadership in Nigeria’s REIT space, and despite the relatively small scale of SFS, it has emerged on top.
But before we get into the numbers, what exactly do these companies offer?
The listed Real Estate Investment Trusts (REITs); SFS REIT (Skye Shelter Fund), Union Homes REIT, and UPDC REIT, are structured to pool investor funds for investment in income-generating properties such as residential estates, shopping malls, offices, and warehouses, while distributing most of their income as dividends.
They give local investors access to real estate returns without the burdens of direct property ownership.
No doubt, they have shown resilience in market performance so far in 2025, but their scale and depth remain modest compared to global peers.
With combined assets below N50 billion and a total market capitalization of just N40.044 billion (0.045% of the NGX’s N89.07 trillion equity market cap), these funds remain significantly underleveraged and underdeveloped relative to international REIT markets, where single trusts often run into billions of dollars.
That said, how has each of them performed, and how did SFS manage to top the chart?
So far in 2025, Nigerian REITs have delivered a surprise package for investors.
On average, they have returned 57.47% year-to-date (YtD), comfortably outperforming the broader NGX market, which is up 36.72% as of yesterday’s close.
This year’s rally is a sharp reversal from 2024, when the story was far more uneven.
Back then, SFS REIT surged 77% YtD, Union Homes was flat, and UPDC lost 22% YtD.
Beyond their share price gains, the financial scorecard for the REITs in H1 2025 tells another performance story and highlights the underwhelming scale of Nigerian-listed REITs.
Collectively, the three funds generated a combined N2.297 billion in total revenue, a slight improvement from N2.253 billion in the same period last year.
While the absolute figure may look small, the growth momentum is important, and when scaled against its tiny asset base, it shows why SFS continues to punch above its weight.
At the earnings-per-unit (EPU) level, the story becomes even clearer.
At the earnings-per-unit (EPU) level, the story becomes even clearer.
The sector average rose to N3.68 per unit in H1 2025, up from N3.06 a year earlier. But SFS was the standout, with N8.32 per unit, far ahead of Union Homes’ N2.30 and UPDC’s N0.41.
In other words, UPDC may be the heavyweight by size, but SFS is clearly the efficiency champion, extracting more value for every unit held.
If earnings tell one side of the story, the balance sheet tells the other. Although size and property holdings matter but efficiency still decides who wins.
Collectively, the three funds sit on about N38.742 billion in investment properties, forming the bulk of their combined N48.665 billion asset base.
Yet compared to global REIT markets where a single fund can hold property portfolios worth billions of dollars, Nigeria’s listed REITs remain modest, under-leveraged, and underdeveloped.
Size alone doesn’t tell the whole story; what matters is how much value each REIT creates for investors.
SFS REIT gives investors the best bang for their buck. It makes the highest profit per unit, far ahead of others, which could be the reason why investors are willing to pay more for its shares even though it is smaller.
Union Homes also gets fair investor confidence, while UPDC looks cheap. But despite owning the biggest property portfolio, it struggles to convert its large property base into earnings.
Dividends complete the picture. The sector average dividend per share is N8.92, translating to an average yield of 6.3%.
Once again, SFS and Union Homes lead, rewarding investors with 7.13% and 8.77% yields, respectively. UPDC lags at 2.99%.