SA REITs deliver 38.6% in 2025 as momentum Rebuilds

• SA REITs delivered a powerful two-year recovery with 88% cumulative returns since 2024.
• Dividend growth rebounded to double digits as operating conditions and sentiment improved.
• Income, not capital growth, will drive returns as the sector enters a more stable phase.

2025 Performance

‍South African listed property capped off an exceptional 2025, delivering a total return of 38.6% and extending its two-year recovery to an impressive 88% cumulative gain.

According to the latest SA REIT Association Chart Book, the sector has not only rebounded from the pressures of rising rates and loadshedding, but has re-established itself as a compelling income and growth asset class for long-term investors.

‍After a weak start to the year, when the sector was down 4.1% in the first quarter, SA REITs staged a powerful turnaround. The fourth quarter alone delivered 21.5% as companies upgraded distributable income guidance and sector-wide dividend growth accelerated to 10% year-on-year in the third quarter, its strongest reading in nearly three years.

Standout performers included Delta Property Fund, which returned a remarkable 105.3% for the year, followed by Fairvest (62.9%), Heriot (49.9%), Vukile (48.3%), Growthpoint (47.6%) and Resilient (47.5%). Over three- and five-year periods, SA REITs have now outperformed both local equities and bonds.

Ian Anderson’s perspective

‍Ian Anderson, compiler of the SA REIT Chart Book and Head of Listed Property at Merchant West Investments, says the scale of the recovery surprised even seasoned market participants.

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“At the start of 2025, very few analysts and market commentators could have envisioned just how successful the year would be for South African REIT investors,” Anderson notes. “The end of loadshedding and greater clarity on global tariffs helped restore investor confidence. At the same time, management teams became increasingly optimistic about the medium-term prospects of their portfolios.”

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Looking ahead, Anderson believes returns will increasingly be driven by income rather than outsized capital gains.

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“Total returns are likely to be skewed towards income rather than capital growth,” he says. “Dividend growth of between 5% and 8% per annum over the next two to three years should support current valuations and drive moderate capital appreciation over the medium term.”

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He adds that the broader macro environment has turned decisively more supportive, with lower interest rates, the end of loadshedding, removal from the financial grey list and an improving sovereign credit outlook all reducing risk premiums and improving access to capital.

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“All said, this should translate into total returns of around 12% to 15% per annum over the medium term – broadly in line with equities and well ahead of bonds and money markets. For long-term investors, SA REITs remain a core income-oriented asset class with selective growth potential,” Anderson concludes.

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Enter 2026

‍After two years of powerful recovery, South African REITs enter 2026 on firmer operational and financial footing. While the extraordinary capital gains of 2024 and 2025 are unlikely to be repeated, improving fundamentals, stabilising interest rates and renewed dividend growth position the sector for sustainable, income-led returns in the years ahead.

Download the full SA REIT Association Chart Book here

SA REIT Conference 2026

‍The SA REIT Association will unpack global trends and the future trajectory of the local REIT sector at its biannual conference on 12 February 2026 in Johannesburg.

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