South African REITs break R300 billion barrier in market capitalisation amid investor optimism

The South African Real Estate Investment Trusts (SA REITs) sector market capitalisation breaks the R300 billion barrier for the first time since 2019 as dividend growth accelerates and investor confidence surges.

SA REITs performance

The local 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 last year, 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).

South African Real Estate Investment Trusts (REITs) outperform global peers with a 46.2% year-to-date surge. The local listed property is significantly outpacing the US, UK and Australia in a global landscape marked by economic shifts and varying recovery speeds. 

The sector has not just recovered, it has surged to the front of the pack.

The SA REIT Chart Book, published by the SA REIT Association and compiled by Anderson, 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 Thursday. (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%). 

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 this year.

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 this year were in line with expectations, though guidance for the financial year of 2026 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.

Sector 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 said.

On Thursday morning, Anchor Capital said in its morning market commentary that real estate companies, Fairvest, Lighthouse Properties, Vukile Property Fund and NEPI Rockcastle N.V. climbed 2.3%, 1.7%, 1.1% and 0.6%, respectively, on Wednesday. 

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