Nigerian Real Estate Investment Trusts (REITs) recorded an average 28% net asset value (NAV) growth in Q1 2026, according to disclosures from leading managers Stanlib Nigeria and UPDC REIT, with strong contributions from rental escalations, positive asset revaluations, and strategic acquisitions in logistics and office sectors.
Stanlib Nigeria Property Fund led with +32% NAV growth, while UPDC REIT followed closely at +29%. The performance reflects improved occupancy rates (85–95% in Grade A assets), inflation-linked lease adjustments, and capital inflows from institutional and retail investors seeking inflation hedges and dividend stability amid macroeconomic recovery.
Q1 2026 Performance Breakdown (Key REITs)
- Stanlib Nigeria Property Fund — NAV +32%
- Key drivers: Logistics warehouse acquisitions, high occupancy in retail malls
- Dividend yield: 12–14% (annualized)
- UPDC REIT — NAV +29%
- Key drivers: Office portfolio revaluation in Victoria Island, rental escalations
- Dividend yield: 11–13%
- Sky Shelter REIT — NAV +26%
- Focus: Residential & mixed-use in Lagos mid-market
- Dividend yield: 10–12%
- Union Homes REIT — NAV +25%
- Focus: Affordable residential & commercial in secondary cities
- Dividend yield: 10–11%
Top REIT Holdings (Q1 2026)
- Warehouses & Logistics — 35–45% of portfolios (Apapa, Ibadan, Kano dry ports)
- Retail Malls & Shopping Centres — 20–30% (Lagos, Abuja, Port Harcourt)
- Office Spaces — 15–25% (Victoria Island, Ikoyi, Maitama)
- Residential — 10–20% (mid-market estates in Lagos & Abuja)
Dividend Yields & Investor Appeal (Q1 2026)
- Average REIT dividend yield: 10–15% (paid semi-annually/quarterly)
- Why gaining traction:
- Inflation hedge (rents escalate 8–15% annually)
- Liquidity vs direct property (trade on NGX)
- Diversification (retail & institutional access via NSE)
- Stable cash flow (long leases, high occupancy)
Why REITs Are Gaining Traction in 2026
- Retail investors — Low entry (₦10,000–₦100,000 via brokers), dividend income
- Institutional investors — Pension funds, insurance companies allocate 5–15% to REITs for yield & stability
- Diaspora participation — Dollar-linked returns via NGX trading
- Regulatory tailwinds — SEC REIT guidelines eased, tax incentives for listed REITs
Final Thoughts
The 28% average NAV growth in Q1 2026 positions Nigerian REITs as one of the strongest performing asset classes locally — offering inflation protection, dividend income, and exposure to high-growth sectors like logistics & offices without direct property management.
For investors: REITs provide accessible, liquid entry into real estate with yields 10–15% and capital appreciation potential.
Stanlib & UPDC lead the pack — are you allocating to REITs in 2026? Which fund or sector excites you most? Share below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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