SA’s REITs recorded a marginal 0.3% decline in September 2025, underperforming both equities (+6.6%) and bonds (+3.4%) according to the SA REIT Association’s September 2025 Chartbook. Despite this pause, the sector’s year-to-date return remains 14%, broadly in line with the bond market, although well behind the equity market’s 31.7% advance.

Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments (and compiler of the SA REIT Chartbook) says the subdued performance in September 2025 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.

“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,” he adds.

September 2025 saw several key REITs release results to end-June 2025 with Growthpoint Properties surprised on the upside with its distributable income up 3.1%. Despite disposing of 24 assets worth R2.3 billion and reducing its GLA by over 5%, net property income in its core SA portfolio rose 5% with the REIT raising its dividend payout ratio to 85% and lifting its dividend 6.1% – well above market consensus. Growthpoint’s guidance for FY2026 remains conservative while its dividends are expected to grow between 6% and 8%.

Fortress Real Estate Investments Limited delivered a 7.1% dividend increase in FY2025, supported by improving property fundamentals, a robust development pipeline, and lower interest rates with its management forecasting further growth of between 6% and 7.5% in FY2026.

Hyprop Investments reported a strong operational performance in both SA and Eastern Europe with its FY2025 dividend having risen 9.9% with guidance for distributable income growth of between 10% to 12% in FY2026.

Beyond the large caps, Attacq Limited, Heriot REIT, SA Corporate Real Estate, and Texton Property Fund also released better-than-expected results while Fairvest Limited and Vukile Property Fund issued positive trading updates. Dipula Properties successfully raised R559 million through an accelerated bookbuild in early September 2025, funding its acquisition of Protea Gardens Mall in Soweto alongside four additional smaller assets.

Anderson says that investor confidence in the listed property sector continues to improve with roughly R4 billion new equity having 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. 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,” he says.

For example, Growthpoint Healthcare Property Holdings 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.

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.”

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 the 12^th of 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.