SA’s REITs extended their winning streak in November 2025, delivering a 9.1% total return following October 2025’s 10.8% gain. According to the SA REIT Association’s monthly Chartbook, the sector significantly outpaced both equities, which returned 1.7%, and bonds, which returned 3.4%.

Year-to-date to 30 November 2025, local REITs have returned 37.9%, surpassing both the broader equity market at 36.2% and bonds at 20.9%.

“The sector’s momentum remains firmly intact. Strong and accelerating dividend growth, combined with lower interest rates and long bond yields has driven a sharp narrowing in the discounts to net asset value that emerged during the COVID-19 pandemic,” says Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book.

The strong price gains, together with new equity capital raised during the year, have propelled the sector’s market capitalisation above R300 billion for the first time since November 2019. Since the end of May 2024, SA REITs have returned a remarkable 84.3% as headwinds such as high interest rates and load shedding gave way to renewed optimism following the formation of the Government of National Unity (GNU).

Anderson attributes the sustained advance to improving property fundamentals across SA over the past two years, which have translated into lower vacancy rates and positive market rental growth.

“This is now being reflected in most companies’ outlook statements. Medium-term distributable income growth prospects of between 6% and 8% per annum over the next three years are supportive of current valuations and investors should continue to anticipate low double-digit returns from the sector over the medium term.“

Delta Property Fund led all SA REITs in November with a 26.9% share price gain after delivering a better-than-expected interim result for the six months to August 2025. Accelerate Property Fund was the second-best performer, rallying 19.6% after providing a trading update towards the end of the month that highlighted ongoing improvements in the company and exceeded market expectations.

Burstone Group’s results for the six months to September 2025 were in line with expectations, although guidance for FY2026 of distributable income per share growth of between 2% and 4% sits at the lower end of the peer group.

Several other companies reported results or provided trading updates during the month, all of which were in line with or above market expectations. In most cases, guidance has been increased for FY2026 as property fundamentals continue to improve.

“With distribution growth accelerating to over 10% and property fundamentals on an improving trajectory, the sector is well positioned to deliver sustained returns for investors. The combination of attractive forward yields, improving operational metrics and a supportive interest rate environment underpins our constructive view,” Anderson concludes.