In 2025, SFS REIT has clearly outperformed its friends, delivering the best returns on each market and monetary metrics.
It’s a massive battle for management in Nigeria’s REIT house, and regardless of the comparatively small scale of SFS, it has emerged on prime.
However earlier than we get into the numbers, what precisely do these firms supply?
The listed Actual Property Funding Trusts (REITs); SFS REIT (Skye Shelter Fund), Union Houses REIT, and UPDC REIT, are structured to pool investor funds for funding in income-generating properties comparable to residential estates, procuring malls, places of work, and warehouses, whereas distributing most of their revenue as dividends.
They provide native buyers entry to actual property returns with out the burdens of direct property possession.
Little question, they’ve proven resilience in market efficiency to this point in 2025, however their scale and depth stay modest in comparison with international friends.
With mixed property under N50 billion and a complete market capitalization of simply N40.044 billion (0.045% of the NGX’s N89.07 trillion fairness market cap), these funds stay considerably underleveraged and underdeveloped relative to worldwide REIT markets, the place single trusts usually run into billions of {dollars}.
That mentioned, how has every of them carried out, and the way did SFS handle to prime the chart?
Market efficiency
To this point in 2025, Nigerian REITs have delivered a shock package deal for buyers.
On common, they’ve returned 57.47% year-to-date (YtD), comfortably outperforming the broader NGX market, which is up 36.72% as of yesterday’s shut.
- Main the cost is SFS REIT (Skye Shelter Fund). Its share worth surged 68% YtD, closing at N301.55.
- Not far behind is Union Houses REIT, which delivered a powerful 57.4% YtD acquire, ending the day at N57.60.
- In the meantime, UPDC REIT might have trailed the opposite two, however nonetheless rewarded buyers with a stable 47% YtD acquire, closing at N7.35.
This 12 months’s rally is a pointy reversal from 2024, when the story was much more uneven.
Again then, SFS REIT surged 77% YtD, Union Houses was flat, and UPDC misplaced 22% YtD.
Monetary efficiency
Past their share worth positive aspects, the monetary scorecard for the REITs in H1 2025 tells one other efficiency story and highlights the underwhelming scale of Nigerian-listed REITs.
Collectively, the three funds generated a mixed N2.297 billion in complete income, a slight enchancment from N2.253 billion in the identical interval final 12 months.
- UPDC REIT carried the most important weight, contributing to the lion’s share of income. It booked N1.537 billion in H1 2025, although this was a contact decrease than the N1.587 billion it made in H1 2024. Being the most important REIT by asset dimension, UPDC stays the anchor of the sector, however its earnings development has been flat.
- Union Houses REIT confirmed consistency, lifting its income to N549 million from N493 million a 12 months earlier.
- SFS REIT, the smallest in dimension, additionally managed to elevate its income, delivering N211 million in H1 2025 in contrast with N174 million in H1 2024.
Whereas absolutely the determine might look small, the expansion momentum is vital, and when scaled in opposition to its tiny asset base, it reveals why SFS continues to punch above its weight.
On the earnings-per-unit (EPU) degree, the story turns into even clearer.
The sector common rose to N3.68 per unit in H1 2025, up from N3.06 a 12 months earlier. However SFS was the standout, with N8.32 per unit, far forward of Union Houses’ N2.30 and UPDC’s N0.41.
In different phrases, UPDC could be the heavyweight by dimension, however SFS is clearly the effectivity champion, extracting extra worth for each unit held.
Steadiness sheet: Measurement, property base, and effectivity
If earnings inform one aspect of the story, the steadiness sheet tells the opposite. Though dimension and property holdings matter however effectivity nonetheless decides who wins.
- UPDC REIT stands tall with the most important property portfolio, reserving about N27.483 billion in funding properties, which makes up practically 81.4% of its N33.773 billion complete property.
- This makes UPDC the “anchor landlord” of the sector. However regardless of its dominance, per-unit earnings stay weak. Briefly: it owns essentially the most actual property however doesn’t sweat its property effectively sufficient.
- Union Houses REIT holds about N9.729 billion in funding properties relative to its N11.702 billion complete property. That heavy focus in properties reveals stability, however scale and development stay restricted.
- SFS REIT, with the smallest steadiness sheet of simply N3.189 billion, allocates round N1.980 billion (over 62%) to funding properties. By squeezing extra earnings out of each naira invested, SFS continues to justify why it outpaces its larger friends.
Collectively, the three funds sit on about N38.742 billion in funding properties, forming the majority of their mixed N48.665 billion asset base.
But in comparison with international REIT markets the place a single fund can maintain property portfolios price billions of {dollars}, Nigeria’s listed REITs stay modest, under-leveraged, and underdeveloped.
Valuation: How the market sees them
Measurement alone doesn’t inform the entire story; what issues is how a lot worth every REIT creates for buyers.
- Earnings per unit: SFS – N25.42 | Union Houses – N4.24 | UPDC – N1.75
- P/E ratio: SFS – 11.9x | Union Houses – 13.6x | UPDC – 4.2x
- P/B ratio: SFS – 2.2x | Union Houses – 1.4x | UPDC – 0.6x
- P/S ratio: Union Houses – 15.7x | UPDC – 12.3x | SFS – 10.9x
SFS REIT offers buyers the most effective bang for his or her buck. It makes the best revenue per unit, far forward of others, which might be the explanation why buyers are keen to pay extra for its shares despite the fact that it’s smaller.
Union Houses additionally will get truthful investor confidence, whereas UPDC appears low-cost. However regardless of proudly owning the most important property portfolio, it struggles to transform its giant property base into earnings.
Dividends full the image. The sector common dividend per share is N8.92, translating to a mean yield of 6.3%.
As soon as once more, SFS and Union Houses lead, rewarding buyers with 7.13% and eight.77% yields, respectively. UPDC lags at 2.99%.
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