SA REITs annual return figures underline a landmark year for South Africa’s listed property sector, as the industry builds momentum following two consecutive years of exceptional performance.
Two-year rally delivers 88% cumulative gains as dividend growth returns to double digits
Johannesburg, 13 January 2026. South African real estate investment trusts (REITs) delivered an outstanding 38.6% total return in 2025, building on their 35.8% performance in 2024 to complete two consecutive years of exceptional gains, according to the latest SA REIT Association Chart Book.
December saw the sector gain a modest 0.5% as markets wound down for the festive period, with limited news flow to drive prices. The stronger rand weighed on several geographically diversified REITs with substantial offshore investments. However, this quiet finish did nothing to diminish the sector’s stellar annual performance.
SA REITs Annual Return Strengthened by Recovery and Dividend Growth
The year’s trajectory exceeded all expectations. After a challenging first quarter that saw the sector down 4.1%, SA REITs staged a remarkable recovery. By year-end, the fourth quarter alone delivered 21.5% as companies raised their distributable income guidance and dividend growth at sector level jumped to 10% year-on-year in the third quarter, having been at zero for the better part of three years.
Delta Property Fund was the standout performer, returning an extraordinary 105.3% for the year, followed by Fairvest at 62.9%. Heriot (49.9%), Vukile (48.3%), Growthpoint (47.6%) and Resilient (47.5%) also delivered impressive gains.
Over the past three and five years, South African REITs have comfortably outperformed both the local equity and bond markets, cementing their position as a compelling asset class for investors seeking income and growth.
Analyst Commentary on the SA REITs Annual Return
Ian Anderson, compiler of the SA REIT Chart Book and Head of Listed Property at Merchant West Investments, comments:
“At the start of 2025, very few analysts and market commentators could have envisioned just how successful 2025 would be for South African REIT investors. The end of loadshedding and more clarity on global tariffs helped boost investor sentiment towards the sector. At the same time, company management teams were becoming increasingly optimistic about the medium-term prospects for their businesses.”
Outlook
Following a strong recovery, South African REITs enter 2026 on firmer footing. While the exceptional capital gains of the past two years are unlikely to be repeated, the sector continues to offer compelling income yields, improving fundamentals and attractive relative value.
Anderson notes:
“Total returns are likely going to be skewed towards income rather than capital gains. The outlook for dividend growth of between 5% and 8% per annum over the next two to three years is supportive of current valuations and likely to drive some capital appreciation in the medium-term.”
The macro backdrop for South African REITs has improved significantly. This includes lower interest rates, the end of loadshedding, removal from the financial grey list and a sovereign credit rating upgrade. All are contributing to a more favourable environment. These factors should result in higher capital flows. They should also lead to a lower risk premium and improved access to capital markets.
“All said, this should result in total returns of between 12% and 15% per annum over the medium-term. This is likely to be in line with the South African equity market. It is also a lot higher than South African bond and money markets. For long-term investors, SA REITs should continue to play a valuable role as an income-oriented asset class. This includes opportunities for selective capital appreciation,” Anderso.
The SA REIT Association Chart Books are available for download here.
SA REIT Conference 2026
The SA REIT Association will be unpacking global trends and the future trajectory of the local REIT sector at its highly anticipated biannual conference on 12 February 2026 in Johannesburg.
The conference will feature Peter Verwer, a founding member of the Global Real Estate Alliance and a heavyweight in international property policy. His keynote presence underscores the increasing integration of South Africa’s commercial property sector into the global fold.
Demand for the event has been unprecedented, mirroring the sector’s performance. The conference is sold out, however interested parties may join the waiting list via the SA REIT Association website here.
Context
The SA REIT Association’s monthly Chart Book is compiled and analysed by Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments, who provides ongoing insights into the performance and trends shaping South Africa’s REIT sector.
The SA REIT Association Chart Books are available for download here.
About the SA REIT Association
The SA REIT Association promotes SA REITs as an investment class both locally and internationally and represents the South African real estate investment trust industry in meeting challenges within the sector.
For more information, visit sareit.co.za.
MEDIA ENQUIRIES
On behalf of SA REIT Association
Louis Eksteen, Managing Director, Twisted Toast Digital
+27 (0)82 452 3898
