UPDC REIT Records 38% Yield as Nigerian Real Estate Funds End 2025 Strong
Nigeria’s real estate mutual funds and Real Estate Investment Trusts (REITs) posted a resilient but highly concentrated performance in 2025, closing the year with a combined Net Asset Value (NAV) of ₦483.06 billion, representing 6.30% of the ₦7.67 trillion collective investment industry, according to data as of December 24, 2025.
The market remained dominated by institutional funds, with three vehicles accounting for more than 96% of total sector assets. The MOFI Real Estate Investment Fund, managed by ARM Investment Managers, led the market with ₦269.85 billion in assets (55.86% of sector NAV) and a 10.2% YTD yield, followed by the Nigeria REIT managed by Chapel Hill Denham, which held ₦163.63 billion and delivered a 9.30% YTD return.
Despite its smaller asset base, the UPDC REIT, managed by Stanbic IBTC Asset Management, emerged as the top-performing fund, recording a 38.00% YTD yield in 2025. It also remained Nigeria’s most widely held REIT, with over 211,000 unitholders, highlighting strong retail investor participation.
Other high-yield performers included SFS REIT, which returned 25.15%, and Union Homes REIT, with a 20.37% YTD yield. Analysts note that while large funds prioritized stability and capital preservation, smaller REITs attracted investors seeking higher income returns.
With Nigeria targeting a $1 trillion economy, real estate investment vehicles are expected to play a larger role in mobilising long-term capital for housing and infrastructure. However, real estate’s relatively small share of the mutual fund industry suggests significant growth potential as housing demand and regulatory reforms shape the market heading into 2026.
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