South Africa’s real estate investment trust (REIT) sector has surpassed R300 billion in market capitalization for the first time since 2019, driven by accelerating dividend growth, improving property fundamentals, and renewed investor confidence.
Listed property continued its strong momentum in November, delivering a 9.1% total return after an already robust 10.8% gain in October. The sector significantly outperformed other asset classes, with equities returning 1.7% and bonds 3.4% over the same period.
By the end of November 2025, SA REITs had generated a year-to-date return of 37.9%, exceeding the broader equity market’s 36.2% and far outpacing bonds at 20.9%.
Since the end of May last year, the sector has delivered an 84.3% return as earlier headwinds such as high interest rates and load shedding eased, and political stability improved following the formation of the Government of National Unity.
Ian Anderson, head of listed property and portfolio manager at Merchant West Investments and compiler of the SA REIT Chart Book, said strong and accelerating dividend growth, combined with lower interest rates and long-bond yields, had helped narrow the discounts to net asset value that emerged during the pandemic.
He noted that rising prices, alongside new equity capital raised during the year, pushed the sector’s market capitalization above the R300 billion mark for the first time since November 2019.
South African listed property has also outperformed global peers, posting a 46.2% year-to-date gain and surpassing REIT markets in the United States, the United Kingdom, and Australia amid uneven global recoveries.
The latest SA REIT Chart Book, published by the SA REIT Association and released on Thursday, highlights a rolling 12-month distribution growth rate of 10.12%. Anderson attributed the sustained advance to improving property fundamentals across the country, including lower vacancy rates and positive rental growth.
“This is now being reflected in most companies’ outlook statements,” Anderson said. He added that medium-term distributable income growth of between 6% and 8% per year over the next three years supports current valuations, with investors likely to see low double-digit returns over the medium term.
Among individual performers, Delta Property Fund led the sector in November with a 26.9% share-price increase following a stronger-than-expected interim result. Accelerate Property Fund gained 19.6% after issuing an upbeat trading update, while Safari Investments rose 14.1%.
Burstone Group reported results broadly in line with expectations, though its forecast for 2026 distributable income growth of 2 to 4% remains at the lower end of the sector. Several other REITs reported results or updates during the month that met or exceeded market expectations, with many raising guidance for the 2026 financial year.
Anderson said the combination of accelerating distribution growth, improving operational metrics, attractive forward yields, and a supportive interest-rate environment positions the sector well for sustained investor returns.
In Thursday morning trading, Anchor Capital noted further gains across several property stocks, with Fairvest, Lighthouse Properties, Vukile Property Fund, and NEPI Rockcastle N.V. all posting advances, underscoring continued positive sentiment toward the sector.
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