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

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%. 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. 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.

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“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.” 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.

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