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SA REITs cap remarkable 2025 with 38.6% annual return

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SA REITs cap remarkable 2025 with 38.6% annual return as sector enters new year on firmer footing

Two-year rally delivers 88% cumulative gains as dividend growth returns to double digits

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.

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.

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, with lower interest rates, the end of loadshedding, removal from the financial grey list and a sovereign credit rating upgrade all contributing to a more favourable environment. These factors should result in higher capital flows, 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, which is likely to be in line with the South African equity market and 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, with opportunities for selective capital appreciation,” Anderson concludes.

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.

Growthpoint officially opens Sandton Drive Link Bridge

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Growthpoint Properties (JSE: GRT) has officially opened the Sandton Drive Link Bridge, a R26 million infrastructure investment. Spanning the key arterial route of Sandton Drive, the new pedestrian bridge directly connects Growthpoint’s premium office building, The Place at 1 Sandton Drive, with Sandton City shopping centre.

Designed for safety, accessibility and visual impact, the bridge not only significantly improves convenience for tenants of The Place but also makes it safer for pedestrians to move through Sandton Central, South Africa’s leading business district. By directly linking the two buildings the bridge also connects commercial, retail, residential and public spaces in Sandton Central and Sandown. It also provides street-level pedestrian access convenient for those accessing the services of U.S. Consulate, which neighbours The Place.

Built through persistence, partnerships and placemaking

The new bridge was developed in close partnership with Sandton City, the Sandton Central Management District and the City of Johannesburg. It is the result of years of planning and a shared commitment to the future of Sandton’s economic hub.

“Sandton Drive Link Bridge is a safe crossing that stands as a beacon to the persistence and partnerships that got this project across the line,” says Estienne de Klerk, SA CEO of Growthpoint Properties. “Thank you to everyone who believed in this vision and made it a reality. This is an investment that will benefit countless people for many years to come.”

Representatives of Growthpoint, Sandton City and its co-owners Liberty, Standard Bank Group and Pareto Limited, and the bridge’s professional team, together with tenants of 1 Sandton Drive and representatives of Sandton Central Management District, the U.S. Consulate and the media were among the first to walk across the bridge, and over Sandton Drive, at the official opening today.

Strategic infrastructure and value creation

The bridge underscores Growthpoint’s continued investment in its core portfolio, driven by active asset management and a commitment to precinct-led value creation.

“This is placemaking in action,” says Timothy Irvine, Head of Asset Management: Offices at Growthpoint. “We’ve enhanced the value and positioning of The Place while improving the safety and experience of everyone moving through this important node.”

 Constructed with a focus on durability, safety and design, the bridge features stainless steel balustrades, a glass-covered viewing deck, and lighting that adds a dynamic presence to the Sandton skyline.

Shaping the future

Growthpoint’s investment in Sandton Central extends beyond its property ownership, which includes assets directly adjacent to The Place and Sandton City, such as The Towers in Alice Lane as well as the Discovery head office, which anchors the Sandton Summit mixed-use precinct where the residential development, Olympus Sandton, recently commenced construction work.

“Through projects like the Sandton Drive Link Bridge, Growthpoint continues to shape South Africa’s leading urban environments by creating places where people, business and investment thrive. It reflects our strategy of value-adding investment in our quality portfolio of core assets and precincts,” concludes Neil Schloss, Head of Asset Management at Growthpoint Properties.

 

SA REITs deliver back-to-back gains

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SA REITs deliver back-to-back gains as November rally lifts year-to-date returns to 37.9%

Sector market capitalisation breaks R300 billion barrier for the first time since 2019 as dividend growth accelerates and investor confidence surges

South African real estate investment trusts (REITs) extended their winning streak in November, delivering a 9.1% total return following October’s stellar 10.8% gain. The sector significantly outpaced both equities, which returned 1.7%, and bonds, which returned 3.4%. Year to date to 30 November 2025, SA REITs have now returned an impressive 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,” remarks 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).

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 November issue was released on 11 December 2025. (Benchmark and methodology: SA REIT Index total return, FTSE/JSE indices, end-November 2025.)

Highlights from the SA REIT Chart Book November 2025

  • Sector total return: +9.1% month-on-month
  • Equities: +1.7% month-on-month
  • Bonds: +3.4% month-on-month
  • SA REIT year to date: +37.9%
  • Market capitalisation: Exceeds R300 billion for the first time since November 2019
  • Distribution growth (rolling 12 months): 10.12%
  • Top performers: Delta Property Fund (+26.9%), Accelerate Property Fund (+19.6%), Safari Investments (+14.1%)

What’s driving the rally

Anderson attributes the sustained advance to improving property fundamentals across South Africa 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,” he says.

Company updates

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 at the company and exceeded market expectations.

Burstone Group’s results for the six months to September 2025 were in line with expectations, though guidance for FY26 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 FY26 as property fundamentals continue to improve.

Outlook

“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.

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.

Registration alert: Registration for the SA REIT Conference, proudly sponsored by Nedbank Corporate and Investment Banking’s Property Finance division, closes strictly on 12 December 2025. Due to high demand only a small number of seats remain before the waiting list opens.

Register here.

Young talent from university campuses at the Greenovate Awards

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Young talent from university campuses across South Africa rise to the challenge of sustainable development at the Greenovate Awards

The 2025 Greenovate Awards marked a decade of student-driven sustainability innovation for the built environment. Created in 2015 by Growthpoint Properties (JSE: GRT) in partnership with the Green Building Council South Africa (GBCSA), the awards continue to recognise the ingenuity of South African university students as they tackle real-world challenges in property and engineering.

Originally conceived to bridge the gap between academia and industry, the awards are now a well-established fixture in the sector, and Greenovate has grown into the country’s leading platform for student sustainability solutions.

This year’s awards saw 29 students from eight universities participate, submitting projects on topics ranging from pee-cycling to the affordability of 3D-printed recycled concrete walls, how greenwashing influences building contractors, and how capital providers for affordable housing view green developments. The winners were announced at a gala dinner held in Sandton.

In the engineering category, the University of Cape Town (UCT) received top honours for a project on the feasibility of producing fertiliser from urine at public event venues such as Cape Town Stadium. The University of Pretoria (UP) claimed second place with a project on using compost to heat water to temperatures needed to ensure safe drinking. UP also took third place with a study showing that partial replacement of cement with fly ash and slag can produce more sustainable concrete without compromising structural integrity or durability.

In the property category, UCT won first place with a project on the financial benefits of certified water efficiency for residential units. UP took second for exploring atmospheric water harvesting as an alternative water supply. UCT also took third with a focus on an optimal model for living walls in the Western Cape.

The International Finance Corporation (IFC) Excellence in Design for Greater Efficiency (EDGE) Award was presented to Justine Braaf and Benjamin van Rhyn of UCT for their work on the financial benefits of water efficiency for EDGE residential units in the Western Cape.

To celebrate its tenth anniversary, this year’s awards introduced two new categories focused on implementation potential and alignment with global ESG goals, reflecting the competition’s ongoing evolution and its impact on the future of green building in South Africa.

The Sustainability in Action Award – for the engineering project with the best potential to be implemented within Growthpoint’s portfolio or systems – was awarded to Stellenbosch University’s Hannah Counihan for her project assessing non-stationary extreme rainfall and hydrological design implications in the Western Cape. Judges highlighted the project’s relevance to Growthpoint’s sustainability objectives, ease of implementation and measurable impact.

The Transformative Impact Award recognises the property, quantity surveying or construction project that demonstrates the strongest alignment with the United Nations Sustainable Development Goals and overall ESG performance. It was awarded to Viwe Duma of the University of Johannesburg for exploring investor and funder perceptions of green developments and green certification in the affordable housing sector.

Engelbert Binedell, Chief Operating Officer of Growthpoint Properties, says: “Greenovate has grown to become a platform for real innovation in our sector. Every year we see these students bring fresh ideas and practical thinking to challenges we face today, and every year their solutions are bolder and better suited to put into practice. Reaching the ten-year milestone is a proud moment for Growthpoint. We’re investing in the future of the built environment by backing the people who will shape it.”

 Lisa Reynolds, CEO of GBCSA, says, “GBCSA is immensely proud to be a founding partner of Greenovate, and it’s inspiring to see how the competition has grown from strength to strength over the past decade. Each year, these students remind us of the innovation and optimism shaping the future of our sector. Their solutions tackle real-world challenges head-on and spark sustainability journeys that will play a vital role in South Africa’s green economy.”

 Prizes to advance planet purpose

The top three winners in both categories received a share of nearly R150,000 in prize money. Additional prizes included GBCSA Accredited Professional (AP) Candidate courses and tickets to the annual GBCSA Convention, where top students are invited to present at the Innovation Stage – a career-defining opportunity to showcase their work to business leaders and influencers. The two new awards introduced this year are each worth R10,000 and sponsored by Growthpoint.

All participants benefit from valuable mentorship, networking opportunities and expert-led workshops. They gain access to the knowledge and support needed to translate their research into practical products or services for the property industry. The programme also helps build lasting networks and partnerships among participants.

 Mentorship from market leaders

This year’s mentors for the property stream included Abigail Godsell of GBCSA, Iphendule Ndzipho and Hlologelo Manthose of WSP, Wardah Peters of Solid Green Consulting, Zanengcebo Mthembu of Emira Property Fund, Emash Mohlaba of Eskom, and Sinethemba Ndlovu of Zutari.

Engineering mentors included Alex Varughese of GBCSA, Mary-Anne Fetcher and Sean Moodley of Zutari, Thato Molapo and Wayne de Villiers of Solid Green Consulting, Kutlwano Dikgwatlhe of Johannesburg Water, Claudia Hedley of Metronomic and Siziwe Mulidi of Future Green Now.

Sector leaders at the judging table

The 2025 judges for the property category included Sustainability Specialist Anelisa Keke, Koketso Morakile of Absa, Natasha O’Reilly of Eris Property Group, Tsholofelo Lameck Makgwa of the City of Tshwane, Bakang Moeng of GBCSA, and Kushinga Kambarami of IFC.

Judges for the engineering category included Makhosazana Mthethwa of Solid Green, Craig Blankers of WSP, Mike Aldous of MPAMOT, Dash Coville of GBCSA, Marius Meyer of Growthpoint Properties, and Mischa Tessendorf of Attacq Limited.

 The innovating, planet-shaping 2025 Greenovate Student Awards winners:

 ENGINEERING WINNERS:
1st – Aqeelah Sharief, University of Cape Town: Exploring On-Site Nutrient Recovery and Water Reuse at the Cape Town Stadium

2nd – Georgia Shear, University of Pretoria: Water Sanitation System Through Compost Heating
3rd – Sai’an Dhayaram, University of Pretoria: Performance of Concrete Incorporating High Percentages of Fly Ash and Slag

PROPERTY WINNERS:
1st – Justine Braaf and Benjamin van Rhyn, University of Cape Town: An investigation into the Financial Benefits of Water Efficiency for EDGE Residential Units in the Western Cape
2nd – Michael Walker and Anastacia Phalatse, University of Pretoria: Using Atmospheric Water Harvesting as an Alternative to Traditional Water Supply Methods
3rd – Samuel de Witt and Aiden Pringle, University of Cape Town: Living Walls in the Western Cape: The Optimal Model – A Quantity Surveyor’s Perspective

OTHER PRIZE WINNERS:
• IFC Prize – Justine Braaf and Benjamin van Rhyn, University of Cape Town: An investigation into the Financial Benefits of Water Efficiency for EDGE Residential Units in the Western Cape
• Transformative Impact – Viwe Duma, University of Johannesburg: Perceptions of Investors or Funders of Affordable Housing on Green Developments and Green Certification
• Sustainability in Action – Hannah Counihan, Stellenbosch University: Assessing Non-Stationary Extreme Rainfall and Hydrological Design Implications in the Western Cape

Students from all South African universities are invited to participate in the Greenovate Awards each year and can register at www.greenovatecompetition.co.za/register