SA REIT Conference 2026

SA REITs surge in October, the strongest monthly gain since 2021

November 7, 2025 by Denise

SA REITs rocket 10.8% in October, the strongest monthly gain since 2021

South Africa’s real estate investment trusts surge as liquidity returns, dividends accelerate and funding costs ease

South Africa’s real estate investment trusts (REITs) staged a decisive rally in October. The SA REIT Index returned 10.8% for the month, outpacing equities at 1.6% and bonds at 2.6%. Year to date to 31 October 2025, the sector is up 26.4% as earnings momentum, firmer sentiment and lower funding costs converge.

“October marked a turning point. Investors rotated back into REITs at scale, pricing in faster dividend growth and a healthier cost of capital,” says Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book. He notes that trading activity was intense with just under R14 billion changing hands in the month, excluding Vukile’s R2.65 billion accelerated bookbuild placed at a small discount to its net asset value (NAV). “This is what renewed confidence looks like. Balance sheets are stronger, distributions are accelerating and selective external growth is back on the table.”

Published by the SA REIT Association and compiled by Anderson, the SA REIT Chart Book distils sector performance, valuation, yield and capital markets activity into clear visual intelligence along with informed commentary for investors and media. The latest October issue was released on 6 November 2025. (Benchmark and methodology: SA REIT Index total return, FTSE/JSE indices, end-October 2025.)

Highlights from the SA REIT Chart Book October 2025

Sector total return: +10.8% month-on-month
Equities: +1.6% month on month
Bonds: +2.6% month on month
SA REIT year to date: +26.4%
Broad participation led by counters such as Growthpoint, Hyprop, Redefine, Resilient, Spear and Vukile

Market leadership was underpinned by improving operating updates, resilient occupancy and measurable relief on interest expense. Several REITs reached or approached all-time highs, while bookbuild activity at pricing close to reported NAV signals a reopening of the equity window for quality portfolios.

What drove the surge

Anderson attributes October’s strong advance to a combination of softer long bond yields, visible distributable income growth and narrowing discounts to NAV. “On a forward view we see sector dividends compounding in the high single digits, with a current forward yield near 7.5%. If bond yields remain range bound, double digit total returns over the medium term are achievable,” he says.

Context and correlation

The sector’s risk / return profile continues to differentiate against local equities and bonds, with five-year correlation metrics and rolling return components reinforcing the diversification role of REITs in South African multi-asset portfolios. The SA REIT Chart Book details this across total return indices, yield differentials and rolling distribution growth.

With investor demand returning and the cost of both debt and equity improving, selectively accretive acquisitions, redevelopments and new developments are set to feature again. “After October’s rerating, the heavy lifting shifts back to earnings and cash flows. That is a constructive handover for a sector that has rebuilt its fundamentals,” Anderson says.

Company updates

Several noteworthy company developments during October reflect renewed market activity and investor confidence across South Africa’s real estate investment trusts.

Accelerate Property Fund led the pack after shareholders voted overwhelmingly against the re-election of founder Michael Georgiou to the board, with more than 97% opposing the motion. The stock surged almost 18% following the decision, making it the top-performing REIT for the month.

Emira Property Fund expanded its strategic position in SA Corporate Real Estate, acquiring an additional 130 million shares to take its holding to 229.6 million shares, equivalent to 8.7% of the total shares in issue. Controlled by the iGroup, which owns just over 64% of Emira, the move underscores continued consolidation and capital recycling activity in the sector.

Fairvest announced two earnings-accretive acquisitions, namely Jozini Mall and Tugela Ferry Mall in KwaZulu-Natal, for a combined R674 million at an attractive initial yield of 10.17%. SA Corporate added to this momentum by acquiring the Parks Lifestyle Apartments at Riversands, a 1 960-unit residential complex near Steyn City, for R1.67 billion, while simultaneously disposing of Bluff Towers Shopping Centre for R544.6 million.

Meanwhile, Safari Investments unveiled plans to delist following a firm intention by Heriot REIT to acquire all remaining shares at R8 per share. The proposed deal, once approved, will see Safari become a wholly owned subsidiary of Heriot REIT, enabling a shift toward a development-led growth strategy despite reduced near-term dividends.

Across the board, results from Equites Property Fund and Spear REIT were well received by investors, reflecting improving property fundamentals and the positive impact of lower borrowing costs on distributable earnings, key drivers behind October’s strong sector-wide performance.

The SA REIT Association Chart Books are available for download here.

SA REIT Conference 2026

The SA REIT Association’s biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, takes place on 12 February 2026 at The Houghton Hotel, Johannesburg. The keynote address, “Global REIT Dynamics: Innovation, Influence and Opportunity”, will be delivered by Peter Verwer, Executive Chairman of Futurefy. The agenda will examine capital access, innovation, local government risk, policy and the renewed relevance of REITs in the real economy.

Listed property is the real economy’s barometer

October 22, 2025 by Denise

SAPOA Convention 2025 panel recap and what it means for South Africa’s REITs

South Africa’s listed property story is one of powerful cycles, resilience and renewal. From a market capitalisation of R3.8 billion in 1998 to more than R400 billion by 2017, the sector outperformed equities and bonds for long stretches before the 2020 correction erased as much as 70% of prices. The SAPOA Convention 2025 listed property panel unpacked this journey and drew a clear conclusion. While listed property is not a perfect proxy for the economy, it remains a credible barometer of real activity when dividend income, operating metrics and capital flows are properly accounted for.

SAPOA Convention 2025 listed property panel moderator Peter Clark (Founder, REdimension Capital) guided a frank conversation with Ian Anderson (Head of Listed Property and Portfolio Manager, Merchant West Investments and compiler of the informative SA REIT Chart Book), Kundayi Munzara (Executive Director & Portfolio Manager, Sesfikile Capital), Pranita Daya (Equity Analyst & Assistant Portfolio Manager, Truffle Asset Management) and Andrew Wooler (Chief Executive Officer, Burstone).

Their core message was measured but optimistic. Dividend growth is returning, balance sheets are better aligned to today’s rate environment and operating fundamentals are improving across many segments. Importantly, when dividends and reinvested income are included over time, no investor who stayed invested “lost money” in the sector. This is a powerful reminder that REITs are designed to channel recurring cash flows to investors, not to offer speculative punts on buildings.

What the cycle taught us

Anderson set the stage with a brief history of the capital super cycle that lifted the asset class for nearly two decades. The sector’s explosive growth was fuelled by income focused products that attracted household investors and by an era of abundant equity that culminated in 2015 to 2017. The correction that followed was severe, yet the recovery since late 2020 has been equally instructive. Listed property has regained leadership on a long horizon because income compounded through the downturn. The lesson is simple. Cash flow discipline beats price chasing.

A second lesson is that capital cycles differ by subsector. Convenience and township retail and logistics have proven more resilient. Office remains the laggard, yet the panel noted falling vacancies in select nodes such as Rosebank and Cape Town, early demand from business process outsourcing and a declining stock base. Patient capital that understands the clock may find value as conditions normalise.

Fundamentals first

Daya argued that on a dividend yield plus growth basis listed property screens well on a three-to-five-year view. Positive rental reversions are reappearing at quality assets, escalations are holding up where demand and supply are balanced and self-generated initiatives such as embedded solar have added durable revenue. Munzara expects low double digit total returns from direct property in South Africa over the cycle and believes listed vehicles can deliver slightly more because of professional asset management and governance.

Valuations remain a key talking point. On average the sector trades at a notable discount to reported net asset value, with wide dispersion across counters. The panel’s take was pragmatic. Private market evidence suggests book values are broadly sound, with an estimated R30 billion of assets sold at a slight premium to NAV in recent years by willing buyers and sellers. Where discounts persist, they often reflect leverage, asset mix, liquidity or a market view on management’s capital allocation record. Better disclosure and consistent definitions for metrics such as like-for-like growth and vacancies would help investors compare companies more cleanly.

Governance, alignment and data

There was strong agreement that governance has improved meaningfully. Crossholdings and related party complexities have reduced and reporting has matured. That said, panellists called for tighter alignment in remuneration and for simpler, standardised KPI definitions across REITs. Investors want transparent links between management rewards and long-term shareholder outcomes. They also want property level data that is comparable across portfolios. The industry has made progress, yet there is more to do.

Capital flows and the cost of money

Wooler noted that the cost of capital has reset globally. Easy equity has given way to a world where discipline in recycling capital, timing disposals and focusing on highest and best use is rewarded. Local banks remain willing lenders at competitive margins which supports private market transactions, yet disposal pipelines from REITs are likely to moderate after several busy years. The broader allocation question remains live. Property still accounts for a low single digit share of the JSE and of balanced portfolios. As policy risk recedes and the rate cycle turns, the panel is seeing growing investor engagement, but property must compete with attractive bond markets that also delivered double digit returns. That puts the onus on REITs to deliver credible, compounding earnings growth.

Why listed property still reads the real economy

Munzara made an important point about the economy that data often undercounts. A large informal sector feeds directly into retail and distribution performance, both of which are strongly represented in listed property cash flows. Industrial is increasingly geared to logistics rather than manufacturing which links it to consumption. Office reflects services sector health. Taken together, these channels make listed property a useful barometer of real activity provided investors look beyond share prices to the underlying cash generation.

Anderson summed up the outlook succinctly. Real dividend growth is returning for the first time in years as fundamentals improve, payout ratios normalise and interest rates ease. Add starting yields that remain elevated and double-digit total returns in the mid-teens are achievable on a three-to-five-year horizon.

The road ahead

The panel closed on a constructive note. Liquidity will always be lower than in banks or large caps and the sector will remain sensitive to capital cycles. Yet REITs have shown an ability to adapt. They have recycled assets, invested in operational efficiency, embraced renewable energy solutions and focused on tenant demand rather than speculative development. The result is a sector that is leaner, better governed and more attuned to investor needs.

For policymakers and city managers the message is equally clear. Credible local government, efficient basic services and predictable regulation are powerful enablers of REIT performance. For investors the takeaway is to focus on quality of cash flows, alignment of incentives and the discipline of capital allocation. For REIT executives it is to keep simplifying, keep standardising and keep telling the income compounding story that underpins the asset class.

Listed property is not the whole economy yet it remains a reliable barometer because it translates on-the-ground activity into cash that can be measured, distributed and reinvested. That is why a sector once written off in 2020 is again drawing interest. The signal from SAPOA 2025 is that the cycle has turned from repair to renewal. The work now is to turn renewed confidence into sustained, real returns.

Download Anderson’s presentation here.

SA REIT Conference 2026

The SA REIT Association’s biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, will take place on 12 February 2026 at The Houghton Hotel, Johannesburg.

This flagship event will convene REIT executives, investors, asset managers, policymakers and market experts to engage on the most pressing forces shaping the future of listed real estate. Topics will include global market volatility, access to capital, innovation, local government risks and the policy environment. With a focus on sector credibility and long-term investor relevance, the agenda promises strategic insight and practical direction.

A highlight will be the keynote address by Peter Verwer, Executive Chairman of Futurefy, titled Global REIT Dynamics: Innovation, Influence and Opportunity. He will explore how REITs worldwide are adapting to investor demands, digital transformation, sustainability imperatives and links to infrastructure and nation building. His perspective comes at a pivotal moment, following the relaunch of the Global REIT Alliance in Stockholm in September 2025.

Originally established in 2006 under the banner of the Real Estate Equity Securitization Alliance (REESA), the alliance has been revitalised under its new name to strengthen international collaboration, knowledge-sharing and industry advocacy. The SA REIT Association is a member of the Alliance.

Verwer’s address will provide valuable context for South Africa’s REIT sector within the global investment landscape.

Peter Verwer to headline SA REIT Conference 2026

October 22, 2025 by Denise

Peter Verwer to headline SA REIT Conference 2026 as global REIT Alliance enters new phase

The SA REIT Association has confirmed that Peter Verwer, Executive Chairman of Futurefy and long-time global REIT ambassador, will deliver the keynote address at the SA REIT Conference 2026 on 12 February at The Houghton Hotel, Johannesburg.

The biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, is South Africa’s most influential gathering of listed property leaders, investors, policymakers and market experts. Against a backdrop of shifting global and local real estate dynamics, Verwer’s address will set the tone for a forward-looking exploration of how the REIT model is evolving worldwide.

Global REIT dynamics

Verwer’s keynote presentation, titled “Global REIT Dynamics: Innovation, Influence and Opportunity”, will examine how REITs across continents are adapting to investor demands, digital transformation, sustainability imperatives and their growing role in infrastructure and nation building. His insights will provide a rare global perspective for South African delegates, connecting local challenges to broader trends in capital flows, governance and long-term investment.

Crucially, his speech follows the relaunch of the Global REIT Alliance at the EPRA Conference in Stockholm in September 2025. Originally established in 2006 as the Real Estate Equity Securitization Alliance (REESA), the Alliance has been revitalised under its new identity to strengthen international collaboration, knowledge-sharing and industry advocacy. Today, it represents 24 countries and regions across North America, Europe, Asia-Pacific, Latin America and Africa, with the SA REIT Association included as South Africa’s voice in this global coalition.

Verwer underscores the significance of this expansion: “The Global REIT Alliance brings together 24 countries and regions, creating a unified voice for REIT advocacy and a platform for knowledge-sharing and standard-setting. Our shared vision is to broaden investor participation, improve transparency and strengthen trust in REITs as a credible global asset class.”

For South Africa, Alliance membership provides a direct line to international peers and policymakers. It allows local REITs and property leaders to learn from global best practice and at the same time contribute perspectives from an emerging market grappling with unique economic and regulatory challenges. As Verwer notes: “Together, we aim to strengthen the global REIT ecosystem and promote REITs as a trusted and transparent asset class worldwide.”

Setting the agenda for South Africa

The 2026 SA REIT Conference will tackle urgent themes shaping the sector, including global market volatility, access to capital, technological innovation, sustainability, local government risks and the shifting policy environment. With credibility and long-term investor relevance at the centre of discussions, the agenda is designed to provide strategic insight and practical direction for REIT executives and investors.

Verwer’s keynote will frame these issues within an international context, exploring how markets from the United States and Europe to Asia and Africa are positioning themselves for resilience. For South African REITs, which collectively represent a significant portion of the Johannesburg Stock Exchange and hold assets across retail, office, industrial and residential segments, his outlook will offer both inspiration and direction at a crucial juncture.

Local positives

After a period of economic pressure and subdued investor sentiment, renewed positivity is emerging in South Africa’s listed property sector. Signs of stabilisation in valuations, improving operational performance by leading REITs and a sharper focus on governance and transparency are helping to rebuild confidence. At the same time, international investors are showing a cautious but growing interest in South African assets, particularly as the local market aligns itself more closely with global REIT trends.

The SA REIT Conference 2026 will capture this mood of guarded optimism, convening executives, asset managers and policymakers to debate how the sector can consolidate its recovery and unlock future growth. By combining a global perspective, underscored by Peter Verwer’s keynote, with a local focus on practical strategies, the event will highlight how South Africa’s REITs are adapting to change and reasserting their relevance as a trusted investment class.

A landmark event

The SA REIT Conference has established itself as the premier platform for debate and networking in the property investment industry. With the inclusion of the SA REIT Association in the Global REIT Alliance, the 2026 edition is set to connect local strategies with global momentum more closely than ever before.

SA REITs pause in September as sector readies for growth

October 9, 2025 by Denise

SA REITs pause in September as sector readies for growth into 2026

Sector slips 0.3% despite stronger bonds and equities while dividend growth momentum continues

South African Real Estate Investment Trusts (REITs) recorded a marginal 0.3% decline in September, underperforming both equities (+6.6%) and bonds (+3.4%), according to the SA REIT Association’s September 2025 Chart Book. Despite this pause, the sector’s year-to-date return remains at 14%, broadly in line with the bond market, though well behind the equity market’s strong 31.7% advance.

“The subdued performance in September is notable given the sharp decline in long bond yields, a buoyant equity market and further signs that distributable earnings growth is accelerating into 2026,” says Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the Chart Book.

He adds: “Dividends across the sector are growing by close to 10% year-on-year, yet investors remain cautious about whether this acceleration will be sustained. However, the evidence increasingly supports ongoing double-digit dividend growth into 2026.”

September by the numbers

SA REIT sector: -0.3% in September, +14% year-to-date
Equities: +6.6% in September, +31.7% year-to-date
Bonds: +3.4% in September, +14.0% year-to-date
Dividends: Sector-wide growth of close to 10% year-on-year
New equity raised in 2025: Just under R4 billion

Results momentum builds across the sector

September saw several key companies release results to end-June 2025.

Growthpoint surprised on the upside with distributable income up 3.1%. Despite disposing of 24 properties worth R2.3 billion and reducing its gross lettable area by over 5%, net property income in its core South African portfolio rose 5%. Management raised the dividend payout ratio to 85%, lifting the dividend 6.1%, well above market consensus. Guidance for FY26 remains conservative while dividends are still expected to grow 6% to 8%.

Fortress delivered a 7.1% dividend increase in FY25. Supported by improving property fundamentals, a robust development pipeline and lower interest rates, management forecasts further growth of 6% to 7.5% in FY26.

Hyprop reported strong operating performance in both South Africa and Eastern Europe. Its FY25 dividend rose 9.9%, with guidance for distributable income growth of 10% to 12% in FY26. The upbeat tone from management represents a shift from their cautious outlook of recent years.

Beyond the large caps, Attacq, Heriot, SA Corporate, Safari and Texton also released better-than-expected results, while Fairvest and Vukile issued positive trading updates. Dipula successfully raised R559 million through an accelerated bookbuild in early September, funding its acquisition of Protea Gardens Mall in Soweto alongside four additional smaller assets.

Investor sentiment shows signs of recovery

Investor confidence in the listed property sector continues to improve. Roughly R4 billion of new equity has already been raised in 2025. While this is still well below the R30 billion annual average raised between 2015 and 2017, it represents a significant rebound from the R8 billion of net new equity raised across the entire period between late 2019 and early 2025.

“This is increasingly a story of returning investor confidence,” indicates Anderson. “The ability to raise capital again at competitive levels, alongside sharply lower borrowing costs, provides the sector with the resources to return to external growth. Acquisitions, redevelopments and greenfield developments are once again feasible, with the potential to accelerate income and dividend growth.”

For example, Growthpoint Healthcare Property Holdings, managed by Growthpoint Investment Partners, the fund management business of Growthpoint, has recently announced that it has entered into an agreement to acquire the properties and operations of Auria Senior Living, a developer, owner and operator of senior living communities in South Africa.

The sector’s transformation over the past five years has been marked by defensive measures: Balance sheet management, recycling capital and optimising portfolios. With these foundations now stronger, listed property is positioned to deliver earnings growth above inflation and renewed capital appreciation.

Outlook: Poised for a new growth phase

Anderson notes that while short-term prices can move on sentiment, interest rates and liquidity, long-term capital growth ultimately depends on sustainable earnings and cash flow.

“South Africa’s REIT sector is entering a period of inflation-beating earnings growth, which is not yet fully reflected in most share prices. This creates an opportunity for investors who recognise the sector’s improving fundamentals.”

The positive outlook for the sector was echoed at the SAPOA Convention 2025 at Sun City on 2 October during the panel Listed property – the real economy’s barometer. Anderson opened the discussion with an overview on resilience and growth prospects in the sector. He was joined by Kundayi Munzara, Executive Director and Portfolio Manager at Sesfikile Capital, Pranita Daya, Equity Analyst and Assistant Portfolio Manager at Truffle Asset Management and Andrew Wooler, Chief Executive Officer of Burstone. Moderated by Peter Clark, Founder of REdimension Capital, the discussion highlighted fundamentals, discipline and the role of direct property as a true barometer of the economy. The panel confirmed that listed property is regaining relevance as a clear indicator of South Africa’s real economy.

The full September 2025 Chart Book is available for download on the SA REIT Association website.

SA REIT Conference 2026

A highlight will be the keynote address by Peter Verwer, Executive Chairman of Futurefy, titled Global REIT Dynamics: Innovation, Influence and Opportunity. He will explore how REITs worldwide are adapting to investor demands, digital transformation, sustainability imperatives and links to infrastructure and nation building. His perspective comes at a pivotal moment, following the relaunch of the Global REIT Alliance in Stockholm in September 2025.