South African REITs start 2026 on a positive trajectory: key insights and trends

South African real estate investment trusts (REITs) have maintained their positive trajectory into the new year, delivering a constructive performance in January this year. 

The SA REIT Association Chart Book for January 2026 reports that the sector's total return for the month was 0.9%.

The performance indicates continued stabilisation after an exceptional 2025, even though it lagged the broader equity market, where the All Share Index climbed by 3.7%.

The year has begun with renewed investor appetite for yield-sensitive assets, Ian Anderson, head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book.

“South African real estate investment trusts started 2026 on a constructive footing,” says Anderson. “The positive start to the year follows an exceptionally strong 2025 for the sector, underpinned by improving balance sheets, stabilising distributions and a gradual normalisation of funding conditions.”

On Friday morning, Anchor Capital wrote in its morning market commentary that real estate companies, SA Corporate Real Estate Fund, Stor-Age Property REIT, Attacq and Burstone Group advanced 2.6%, 2.5%, 2.4% and 1.7%, respectively, on Thursday. 

Performance drivers 

Last month’s gains were primarily supported by share price appreciation rather than income, reflecting a shift in sentiment supported by easing inflation expectations and a more favourable global rates backdrop.

“From a macro perspective, sentiment was aided by a firmer rand, moderating local inflation and growing confidence that the South African Reserve Bank is set to cut interest rates further in 2026,” Anderson explains.

“REITs continued to trade as a hybrid asset class, offering both defensive income characteristics and equity-like upside in an environment where economic growth remains subdued but stable.”

Company activity and divergence

Performance dispersion remains a key theme. While profit-taking weighed on some of 2025’s top performers, other counters surged ahead. Attacq (6.7%), Oasis Crescent (4.5%) and Redefine (4.0%) delivered solid gains, supported by improving operational metrics. 

“REITs such as Attacq, Oasis Crescent, Redefine, Heriot and Growthpoint delivered solid positive returns, supported by factors including resilient retail footfall and ongoing cost containment initiatives,” says Anderson. 

“Over longer periods, the data continues to highlight a clear recovery trend across most of the sector. Importantly, distribution growth has also turned positive on a rolling basis, signalling the recovery is increasingly being supported by underlying cash flows rather than valuation re-rating alone.”

The December 2025 SA REIT Chartbook marked the close of a very strong year for South African REITs and reinforced the sector’s relevance as an income-focused investment.

After delivering 35.8% in 2024, SA REITs recorded a further 38.6% total return in 2025, lifting cumulative gains over two years to 88%.

The year was also said to have represented a significant turning point, with dividend growth returning to double digits after three years of stagnation, supported by improving operating conditions and a more stable macro environment.

From both an investor and industry perspective, the outlook has shifted meaningfully. According to Anderson, medium term total returns of 12% to 15% per annum are expected, with income rather than capital gains driving the bulk of returns.

Outlook for 2026

Looking ahead, Anderson believes the sector is well-positioned, despite expected volatility.

“The sector enters 2026 in a far stronger position than in recent years. Balance sheets are generally healthier, asset quality has improved through active portfolio management, and valuations remain compelling relative to both equities and bonds.

The January data reinforces the view that SA REITs are once again positioned to play a meaningful role in diversified portfolios as income generation and capital growth prospects continue to normalise,” he says.

Conference sold out as confidence returns

The sector’s renewed momentum is mirrored by unprecedented interest in the upcoming SA REIT Conference 2026, taking place on February 12 in Johannesburg.

The sold-out event will see industry leaders gather to pressure-test strategies and chart the path forward.

It is sponsored by Nedbank Corporate and Investment Banking’s Property Finance division and will feature keynote speaker Peter Verwer on global REIT dynamics, alongside heavyweights such as strategist and economist Prof Adrian Saville and Attacq CEO Jackie van Niekerk.

“This is the room where the industry challenges assumptions and sharpens what comes next,” says Anderson.

“The fact that the conference sold out early underscores the shift in the sector. We have moved beyond survival mode and are firmly back to discussing growth, data monetisation and the future of South African property.”