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

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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.

Register here.

Growthpoint’s pioneering renewable energy certificates for tenants

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Nedbank to decarbonise 26 branches with Growthpoint’s pioneering renewable energy certificates for tenants

Nedbank Group Limited has become one of the first businesses in South Africa to offset its carbon emissions by taking up Growthpoint Properties Limited’s (JSE: GRT) renewable energy certificates (RECs) in a groundbreaking initiative enabling tenants to offset electricity emissions in leased buildings.

 Nedbank leads on Scope 2 carbon emissions reduction

Setting a new benchmark for corporate decarbonisation in South Africa, Nedbank will offset its Scope 2 emissions across 26 branches located in Growthpoint-owned shopping malls and offices in five provinces — from La Lucia Mall in KwaZulu-Natal to Waterfall Mall in North West, and Woodmead Retail Park in Gauteng to Walmer Park in the Eastern Cape, as well as The Constantia Village in the Western Cape. Together, the branches span over 8,200 square metres of retail space.

Growthpoint solves the challenge of leased-property emissions for businesses

Scope 2 emissions, which stem from purchased electricity, are typically the hardest – if not impossible – for businesses to reduce in multi-tenanted leased premises without support from the landlord. Tenants can reduce their consumption but can’t control the electricity supply at these buildings, and the vast majority of South Africa’s national electricity is coal-fired.

Growthpoint’s REC initiative addresses these gaps for the first time in South Africa by certifying the clean solar power generated at its properties and offering verified RECs to tenants. At the same time, it paves the way for wider use of certified, blockchain-tracked green attributes by businesses in South Africa.

A scalable model for corporate decarbonisation

Nedbank has welcomed the solution as a major step forward on its well-established sustainability journey.

Charl de Kock, Nedbank Executive Head of Group Business Services, says that Nedbank is delighted to partner with Growthpoint in this pioneering initiative.  

 “Access to RECs through Growthpoint gives us an immediate, auditable way to reduce Scope 2 emissions for our branches in their buildings. This removes a big barrier and supports our long-term climate goals, especially where it is too complex to wheel or generate renewable electrons,” adds de Kock. 

 “Nedbank achieved a 30% energy reduction target two years ahead of schedule. In 2024, our electricity use stayed below 97,000 MWh, and renewable energy reached 10% of total consumption. We have been carbon-neutral since 2010, making us the only major bank with this track record.”

“Nedbank’s early adoption of RECs marks a pivotal shift for carbon offsetting and reporting in South Africa. Transparent carbon emission offsets are urgently needed, particularly for businesses in leased spaces, as they cannot tackle the challenge alone. Growthpoint is proud to support our tenants in decarbonising their operations,” says Werner van Antwerpen, Growthpoint Head of Corporate Advisory.

Growthpoint’s collaboration with Nedbank unlocks a new way to manage environmental risk while affirming leadership in driving global efforts toward a low-carbon economy.

Shared climate ambitions drive joint action

Nedbank and Growthpoint are naturally aligned on certified decarbonisation. Both are leaders in South Africa’s certified green building movement and catalysts for energy efficiency and renewable energy adoption. Both share ambitious climate targets: Growthpoint is aiming for carbon neutrality across its property portfolio (the largest for a REIT locally) by 2050, while Nedbank is targeting 100% of lending and investing supporting a net-zero carbon economy by the same year.

By taking these initial steps in the REC market together, Nedbank and Growthpoint are advancing their sustainability ambitions and opening the way for businesses of all sizes in South Africa to achieve credible Scope 2 emission offsets while stimulating the local green economy.

This transaction is expected to pave the way for broader integration of green attribute instruments and grow South Africa’s sustainable economy.

Growthpoint’s solar energy infrastructure

Underpinning the solution is Growthpoint’s unique renewable energy mix. The leading property company has grown one of South Africa’s largest Small Scale Embedded Generator (SSEG) renewable energy fleets and linked it to transparent certification frameworks. It has a solar fleet of 80 rooftop systems providing 61.2MWp capacity. Growthpoint plans to commission 7MWp of additional solar capacity by mid-2026.

So far, nearly half of its solar plants are already registered on the international Renewable Energy Certificate (I-REC) registry in partnership with Fuel Switch, Africa’s first blockchain-enabled REC exchange. The I-REC mechanism provides globally recognised certification for renewable energy generation and is increasingly being adopted by companies and institutions to meet sustainability targets.

e-co₂ wheeled green electricity is live

Alongside its on-site rooftop solar fleet, Growthpoint launched its wheeled renewable energy initiative, e-co₂, last month (October 2025). Supported by a landmark 195GWh power purchase agreement (PPA) with Etana Energy for a sustainable mix of renewable hydro, wind and solar electricity.

The first renewable energy generation project to come online as part of the PPA is Boston Hydroelectric Plant in Lesotho Highlands Water Scheme near Clarens, a new R390 million development by Serengeti Energy, with an operational lifetime of over 40 years. Growthpoint has acquired a 30% stake in the plant and secured exclusive access to all the approximately 30GWh of renewable electricity generated by the plant annually. The certified zero-carbon electricity from Boston Hydro is already being added to the national grid and supplying 20 Growthpoint buildings on Eskom’s direct grid and three on the City of Cape Town’s grid. This includes 10 e-co₂ office buildings in Sandton where, in addition to compounding cost-saving fixed escalations on green electricity, each unit of clean energy consumed by a tenant automatically generates a tradable digital REC for them, tracked via Fuel Switch’s blockchain-enabled platform.

A milestone for South Africa’s green economy

 “Growthpoint’s first-of-its-kind green electricity programme offers tenants a way to reduce their Scope 2 emissions and marks an important milestone in South Africa’s green energy market. It demonstrates how building owners and tenant businesses can work together to deliver real emissions reductions and build a low-carbon future,” adds van Antwerpen.

 

Hyprop’s Clearwater Mall secures South Africa’s first Walmart Store

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Hyprop-owned centre brings international retail giant to West Rand, creating 80+ jobs

Clearwater Mall Secures South Africa’s First Walmart Store

Clearwater Mall, owned and managed by Hyprop Investments, will become home to South Africa’s first Walmart store, marking the American retail giant’s debut entry into the local market.

The announcement transforms Clearwater Mall’s retail offering and introduces Walmart’s distinctive “Every Day Low Prices” model to South African consumers. Unlike traditional sale-driven retail, shoppers will benefit from stable pricing across thousands of products year-round, eliminating the need to wait for promotional periods.

“Being selected as the location for South Africa’s first Walmart store demonstrates the strength of our retail offering and our commitment to the West Rand community,” said Kelly Belman, General Manager of Clearwater Mall. “The creation of more than 80 new jobs adds real economic value to our region, which makes this announcement even more meaningful.”

The store will occupy the mall’s upper level, featuring wide aisles, clear signage and bright lighting. Product categories span fresh and frozen foods, groceries, health and beauty products, clothing, baby essentials, homeware, electronics, toys and seasonal items.

Walmart’s product strategy emphasises local partnerships, with the majority of merchandise sourced from South African suppliers. Select international offerings will include the Beautiful range by actress Drew Barrymore – a collection of stylish kitchen appliances designed to bring premium quality to everyday cooking.

Public excitement has been building steadily since the announcement, with the store set to create more than 80 positions ranging from shop floor roles to management.

“The addition of Walmart is expected to increase foot traffic and create positive ripple effects for neighbouring businesses within the centre,” concluded Belman.

The Walmart Clearwater store will be located at Clearwater Mall upper level, Hendrik Potgieter Road and Christiaan de Wet Road, Strubens Valley, Roodepoort. The official opening date will be announced in the coming weeks.

Growthpoint and Feenstra’s Noka Park sets new standard

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Growthpoint and Feenstra’s Noka Park sets new standard for Grade A logistics and industrial space in Gauteng

 New R700m speculative development responds to rising demand for sustainable, tech-enabled warehouses

Growthpoint Properties (JSE: GRT), in partnership with Feenstra Group, has launched Noka Park, a R700 million logistics and industrial development strategically located in Gauteng’s Riverfields logistics precinct, near OR Tambo International Airport. The park is 50/50 co-owned and co-developed by Growthpoint and Feenstra Group and will be managed by Growthpoint.

Construction begins in October 2025, with four buildings to be delivered in phases. The first warehouse is set for occupation from the final quarter of 2026, with the remainder rolled out on completion.

Noka Park tenants will benefit from direct access to transport and distribution corridors; scalable, future-proofed facilities; a professionally managed precinct; and an environment that integrates business performance with sustainability.

Answering demand in a shifting market

 Noka Park is a speculative development designed to meet strong and evolving tenant demand.

“The South African logistics market is currently being reshaped by a ‘flight to quality’ with tenants prioritising high-grade, sustainable and technologically enabled warehouses over more basic facilities,” says Errol Taylor, Head of Asset Management: Logistics & Industrial at Growthpoint Properties.

This trend reflects broader global shifts. Industrial occupiers are increasingly prioritising technology adoption, integrating IoT, AI and automation to streamline warehouse operations and enhance supply chain efficiency. At the same time, sustainability and ESG alignment have moved to the forefront, with tenants seeking energy-efficient buildings that are solar-ready, water-wise and aligned with green certification standards. Even with the recent suspension of load-shedding, energy security remains critical driving demand for logistics parks with reliable power infrastructure and backup systems. Flexibility is equally essential, as the market shows growing interest in mid-sized warehouses ranging from 10,000m² to 30,000m². This makes scalable, adaptable land parcels, like those offered within Noka Park, a significant competitive advantage.

“Noka Park speaks directly to these market dynamics,” notes Taylor. “This development with Feenstra Group demonstrates how considered partnerships and strategic site selection can deliver superior value for tenants. It provides immediate efficiency and resilience, but also long-term sustainability for tenants. We are confident that Noka Park will meet and exceed these requirements.”

Expanding a high-performing logistics portfolio

Growthpoint has steadily repositioned its logistics and industrial portfolio as one of its key growth platforms. Logistics and industrial assets have grown from 15% to 20% of its total South African portfolio value, with nearly half of these assets now concentrated in modern logistics warehouses located in high-performing nodes.

This portfolio transformation reflects a deliberate strategy to focus on quality, performance and sustainability, Taylor says, and this is set to continue with a pipeline of demand-driven speculative developments like Noka Park.

Future-ready facilities for modern industry

 With its combination of prime location, modern specifications and environmental integration, Noka Park is designed for a diverse tenant base ranging from e-commerce companies to international logistics operators and warehousing.

“Working alongside Growthpoint on Noka Park has allowed us to combine our strengths to develop this high-quality logistics asset,” says Johann du Plessis, CEO of Feenstra Group Developments. “From the outset, the focus has been on future-proofing the development through sustainable design, adaptability and efficiency. The result is a logistics park that not only serves the needs of tenants today but will remain relevant as this innovative sector evolves.”

Prime location in a strategic logistics hub

 Noka Park is strategically located within the Riverfields logistics hub in Kempton Park, a managed precinct known for its scale, smart infrastructure, and seamless connectivity. Reflecting its location, Noka means “river” in Sesotho.

Situated at the corner of Mulder Road and Blaauwklippen Avenue, the development offers easy access to the R21 freeway and lies only 3km from OR Tambo International Airport, positioning it as a prime node for both national and international distribution. Its proximity to key logistics and commercial assets, including major warehousing, industrial and retail nodes, including Isando, Jet Park and East Rand Mall all within 10kms, reinforces its role as a central access point within Gauteng’s high-performance logistics corridor.

The Riverfields precinct is also notable for its environmental setting within the Ekurhuleni ecological zone, where preserved grasslands, seasonal streams and indigenous landscaping form part of the development, underscoring its environmental credentials.

 Scale and specifications

Noka Park spans 105,000sqm and will deliver over 52,000sqm of high-performance industrial space across four state-of-the-art warehouses designed to accommodate high-volume warehousing, racking, and fast-moving logistics operations. Warehouse footprints range from mid-sized to large-scale facilities, offering flexibility to both blue-chip tenants and growing industrial operators.

Each warehouse is equipped with FM2-specification floors, 12m clear spring height and both dock and on-grade access to support efficient movement of goods, enhanced by built-in offices, with staff areas and ablutions.

Solar-ready roofing, LED lighting and generator-ready infrastructure reflect a focus on operational resilience and energy efficiency. Additional features such as low-e performance glazing further enhance sustainability and thermal performance.

Safety and security are reinforced through fire protection systems, a secure gatehouse with access control, a 2.4m perimeter wall and electric fencing.

“By combining scale, flexibility and modern specifications, Noka Park sets a new benchmark for industrial and light manufacturing facilities in Gauteng,” concludes Taylor.

Growthpoint acquires a 30% stake in Boston Hydroelectric Plant

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Growthpoint acquires a 30% stake in new R390m Boston Hydroelectric Plant

Strategic investment in the hydro plant that is powering the 24/7 clean energy being wheeled to 23 Growthpoint flagship properties

CLARENS, FREE STATE. Growthpoint Properties (JSE: GRT), South Africa’s leading Real Estate Investment Trust (REIT), has acquired a 30% stake in the operational Boston Hydroelectric plant, a new R390 million development with an operational lifetime of over 40 years by leading independent power producer Serengeti Energy within the Lesotho Highlands Water Scheme near Clarens. South Africa’s newest hydroelectric plant was certified for commercial operations by Eskom on Friday (17 October 2025) and has already started adding renewable energy to the national grid.

 As early as 2023, Growthpoint secured exclusive access to all the approximately 30GWh of renewable electricity generated by the plant annually, through its landmark 195GWh power purchase agreement (PPA) with licenced energy trader Etana Energy. Boston Hydro is the first project to come online in a mix of cost-saving, certified zero-carbon hydro, wind and solar electricity generation projects powering the PPA. The renewable electricity from Boston Hydro will supply 23 Growthpoint buildings, including 10 in Sandton Central and three in Cape Town.

Strategic investment advances energy security

 Growthpoint’s 30% stake in Boston Hydro continues its investment in renewable electricity sources and furthers its green energy transition which began more than a decade ago. The property group took its first steps into rooftop solar generation in 2011, from which is has grown a track record of practical, scalable, carbon reducing energy solutions for its business, tenants and South Africa.

Since its first installation, the property group has invested more than R1 billion in solar energy locally, grown one of South Africa’s largest Small Scale Embedded Generator (SSEG) renewable energy fleets and linked it to transparent certification frameworks. Growthpoint owns a fleet of 80 rooftop plants across its portfolio delivering 61.2MWp of capacity and generates a significant amount of clean electricity annually. A further 7MWp of solar installations are in the pipeline for commissioning by mid-2026.

Growthpoint now operates and procures one of South Africa’s most diversified private renewable energy portfolios, combining solar and hydro generation, with wind soon set to join its renewable energy mix as part of the PPA. Together with its rooftop solar, when its PPA with Etana Energy is fully operational, approximately 40% of Growthpoint’s total electricity demand will be supplied from renewable energy.

Powering up transparency too, Growthpoint verifies its renewable energy by registering the electricity generated on the International Renewable Energy Certificate (I-REC) registry via Fuel Switch, Africa’s first blockchain-enabled REC exchange. This ensures global transparency, traceability and accountability across its clean-energy portfolio.

Making renewable energy work for business

Bringing all this together is Growthpoint’s game-changing e-co₂ wheeled renewable energy initiative (which is short for electricity minus carbon dioxide and pronounced “eco two”). This solution is built around Growthpoint’s tenants — thousands of businesses, big and small, in all sectors of South Africa’s economy.

Growthpoint’s pioneering e-co₂ now officially delivers wheeled renewable electricity directly to 10 flagship office buildings in Sandton and their tenants, with the first electrons coming from the operational Boston Hydro over the national grid. e-co2 wheeled green electricity is stable and cost competitive for Growthpoint tenants, it has zero-carbon footprint and certified with tradable digital RECS.

Businesses can, for the first time in South Africa, cut their Scope 2 emissions from purchased electricity in select Growthpoint buildings. So, they can save money, advance their sustainability goals and report certified emissions reductions aligned with evolving IFRS sustainability reporting standards.

The launch of e-co2 positions Growthpoint as South Africa’s first provider of a commercial-scale wheeled renewable energy solution for multi-tenanted commercial properties, with building-level certification and benefits that are made available to tenants in a verified, auditable format.

Leading collaboration in South Africa’s private renewable energy market

Leading the way in bringing certified renewable energy into daily business use, e-co2 is built on unprecedented collaboration and leading-edge skills, cemented by deep environmental stewardship, that forms a connected ecosystem.

Together, Serengeti Energy’s independent power generation at Boston Hydro, Etana Energy’s wheeling offering and power purchase agreement, Growthpoint’s renewable energy offtake for its commercial properties and Fuel Switch’s digital REC registration have formed a pioneering collaboration advancing South Africa’s renewable energy transition.

Growthpoint sits at the centre of this transparent ecosystem, demonstrating how the property sector can lead the shift toward energy security and sustainability, while unlocking shared value for stakeholders.

 Estienne de Klerk, SA CEO of Growthpoint Properties, says: “We are incredibly proud of this innovative initiative, made possible by a visionary team, dedicated partners such as Etana Energy, Serengeti Energy, Fuel Switch and many passionate and talented people over a number of years. It not only benefits the immediate occupants of Growthpoint’s properties but helps to create a brighter and more sustainable future for South Africa.”

 Evan Rice, CEO, of Etana Energy, says: “Growthpoint and Etana’s clean energy partnership is accelerating renewable energy in a way that works for business, the country and the planet. Together, we’re making clean electricity accessible through the grid, securing long-term take-off for IPPs and enabling businesses to cut costs and carbon without complexity. It’s a scalable, transparent model for South Africa’s energy future.”

 Anton-Louis Olivier, CEO, Serengeti Energy, says: “Boston Hydro brings affordable, baseload renewable power to the grid reliably and around the clock. It’s the product of 15 years of operational experience across Africa. We’re proud to be the generation backbone of this ground-breaking clean energy partnership and powering a scalable solution for South African businesses through Growthpoint’s e-co₂.”

 Etana Energy: enabling renewable wheeling at scale, cost efficiently

 Etana Energy plays a pivotal role in bringing eco₂ to life for Growthpoint and its tenants. As a licensed electricity trader, Etana provides the platform that allows renewable electricity generated by independent power producers to reach Growthpoint’s buildings through South Africa’s electrical grid.

This is achieved through renewable electricity wheeling – the process that allows electricity users to buy electricity generated by private power projects located elsewhere in the country, like Boston Hydro, using existing transmission and distribution networks. For businesses in office nodes such as Sandton and the Cape Town Foreshore, this is a game-changer. In these areas, where building roof space is extremely limited, on-site solar generation is impractical, if not impossible.

Etana’s integrated trading platform provides a reliable and scalable mechanism for wheeling clean energy, opening access to affordable renewable energy for businesses across the country. Its collaboration with Growthpoint demonstrates how private-sector partnerships can drive meaningful progress towards a low-carbon, energy-secure future for South Africa.

Growthpoint’s long-term commitment to take up 195GWh of clean electricity annually from Etana Energy has already helped to unlock vital capital for the development of new renewable energy infrastructure for South Africa. In addition to the newly developed Boston Hydro plant, wind and solar generation from Etana’s growing renewable portfolio will be added to Growthpoint’s energy mix from 2026 onwards.

Serengeti Energy: powering progress sustainably

 At the generation end of the eco₂ collaboration, Serengeti Energy brings deep technical expertise and a proven track record in renewable power development across Africa. The company is the developer, constructor and operator of the Boston Hydro project, a 5MW run-of-river hydropower plant located on the Ash River within the Lesotho Highlands Water Project, which is the major water transfer scheme linking Lesotho and Gauteng.

Boston Hydro is the largest of six hydropower facilities along the Ash River and represents Serengeti Energy’s fourth operational hydro plant in South Africa. As a third-generation project of this leading independent power producer, it incorporates insights gained from Serengeti’s nearly 15 years of operating experience across the continent, enhancing system availability, lowering maintenance requirements and improving overall plant performance.

The plant will generate approximately 30GWh of renewable electricity annually, providing reliable 24/7 baseload power to Growthpoint’s eco₂ network through Etana Energy’s wheeling framework. This makes Boston Hydro a cornerstone of Growthpoint’s renewable supply mix.

Listed property is the real economy’s barometer

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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.

Register here.