Nigeria’s listed real estate investment trusts (REITs) are entering a new phase of asset expansion, with investment property values and rental income rising sharply across the sector despite persistent pressures on operating costs and the broader property market.
An analysis of the first-half financial performance of SFS REIT, UPDC REIT and UH REIT shows that the three funds recorded a 63 percent rise in rental income to N2.08 billion in H1 2026, from N1.27 billion in H1 2025, while their investment property portfolios expanded by 58.7 percent, suggesting a growing focus on income-generating real estate assets.
The strongest performance came from UPDC REIT, whose rental income almost doubled year-on-year to N1.57 billion in H1 2026 from N837 million in H1 2025. SFS REIT and UH REIT also recorded increases, although at considerably slower rates.
The development comes as Nigeria’s property market continues to adjust to high construction costs, elevated interest rates, inflation and changing demand patterns. For REIT investors, however, the expansion in rental income and underlying property values points to improving capacity to generate recurring income from real assets.
UPDC REIT leads rental income growth
UPDC REIT emerged as the clear leader in rental income generation among the three funds. Its rental income rose from N625 million in H1 2022 to N725 million in H1 2023 before declining to N683 million in H1 2024. It subsequently rebounded to N837 million in H1 2025 and then surged to N1.57 billion in H1 2026.
That represents an 87.6 percent year-on-year increase, the strongest growth among the three REITs analysed. The performance also means UPDC’s rental income has increased by about 151 percent since H1 2022, reflecting the expansion of its property portfolio and stronger income generation from its assets.
The growth is particularly significant because UPDC REIT’s investment properties increased from N27.4 billion in H1 2025 to N30.8 billion in H1 2026, a 12.4 percent increase.
Over the five-year period, its investment properties expanded from N21.5 billion in H1 2022 to N30.8 billion, representing an increase of about 43 percent. The combination of a larger asset base and sharply higher rental income suggests that UPDC REIT is extracting greater income from its portfolio.
Its rental income yield relative to investment properties also improved materially, based on the reported figures, rising from about 3.1 percent in H1 2025 to 5.1 percent in H1 2026.
UH REIT’s property base jumps
UH REIT recorded the second-largest expansion in investment properties. Its property portfolio increased from N9.27 billion in H1 2025 to N25.2 billion in H1 2026, representing a staggering 171.8 percent increase.
The expansion also marks a significant reversal from the relatively flat trajectory recorded between 2022 and 2025. UH REIT’s investment properties stood at N9.42 billion in H1 2022, declined to N9.09 billion in H1 2023 and then moved to N9.45 billion in H1 2024 before falling slightly to N9.27 billion in H1 2025.
The jump to N25.2 billion in H1 2026 therefore represents a fundamental change in the size of the portfolio. Rental income, however, grew at a much slower pace. UH REIT’s rental income increased from N335 million in H1 2025 to N393 million in H1 2026, representing 17.3 percent year-on-year growth.
While the increase is positive, the divergence between property growth and rental income growth raises an important question for investors: how quickly can the newly expanded asset base be converted into recurring rental income?
SFS REIT posts steady income expansion
SFS REIT delivered the most consistent, albeit smaller, growth trajectory. Rental income rose from N85 million in H1 2022 to N94 million in H1 2023, N101 million in H1 2024 and N105 million in H1 2025 before reaching N122 million in H1 2026.
The latest figure represents a 16.2 percent year-on-year increase. Unlike UPDC and UH, SFS REIT operated with a considerably smaller investment property base. Its investment properties remained at N1.82 billion between H1 2022 and H1 2023 before rising to N1.98 billion in H1 2024 and H1 2025.
In H1 2026, however, the portfolio jumped to N5.37 billion, representing a 171.2 percent year-on-year increase. The sharp expansion means SFS REIT, like UH REIT, now has substantially more assets from which to generate future rental income.
Interest income provides another income stream
Beyond rental income, interest income has become an increasingly important component of REIT earnings. SFS REIT’s interest income increased from N106 million in H1 2025 to N127 million in H1 2026, representing 19.8 percent growth.
UH REIT recorded a similar trend, with interest income rising from N211 million to N251 million, an increase of 19 percent. UPDC REIT was the exception, with interest income declining slightly from N634 million in H1 2025 to N613 million in H1 2026, representing a 3.3 percent decline.
Despite the decline, UPDC remains the largest generator of interest income among the three funds based on the H1 2026 figures.
The growth in interest income at SFS and UH also highlights how REITs can supplement rental earnings with returns from cash and other interest-bearing investments, particularly in an environment where interest rates remain elevated.