SA’s REITs surged 10.8% in October 2025, outpacing equities at 1.6% and bonds at 2.6% with the sector up 26.4% year-to-date as earnings momentum, firmer sentiment, and lower funding costs converge.

Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments, and compiler of the monthly SA REIT Chart Book, says that October marked a turning point with investors having rotated back into REITs at scale, pricing in faster dividend growth, and a healthier cost of capital.

He further notes that trading activity was “intense” with just under R14 billion changing hands during the month, excluding Vukile Property Fund’s R2.65 billion accelerated bookbuild which was placed at a small discount to its NAV.

“This is what renewed confidence looks like. Balance sheets are stronger; distributions are accelerating and selective external growth is back on the table,” he says.

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

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.”

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.

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.

Accelerate Property Fund led the pack in terms of noteworthy company developments that reflect renewed market activity and investor confidence, after shareholders voted overwhelmingly against the re-election of founder Michael Georgiou to its board, with its stock having surged almost 18% following the decision.

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.

Fairvest Limited 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 Real Estate 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 Limited 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.

SA REIT Conference 2026

The SA REIT Association’s biennial conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, is taking 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.