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Nathaniel Nwoba
Asked: 2026-09-02T11:17:18+00:00 In:

What Are the Best Real Estate Investment Trusts (REITs) Listed on the NGX?

What Are the Best Real Estate Investment Trusts (REITs) Listed on the NGX?
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3 Answers

  2. Kingsley

    A REIT (Real Estate Investment Trust) is like a group contribution (esusu or ajo) for property. Instead of needing $100,000 or ₦100 million to buy a shopping mall or office building yourself, a company buys the properties, collects rent, and shares the rental profits among everyone who contributed.Read more

    A REIT (Real Estate Investment Trust) is like a group contribution (esusu or ajo) for property.
    Instead of needing $100,000 or ₦100 million to buy a shopping mall or office building yourself, a company buys the properties, collects rent, and shares the rental profits among everyone who contributed.
    On the Nigerian stock market, there are two main ones worth looking at:

    The 2 Best Options in Nigeria

    1. UPDC REIT (Best All-Rounder)
    • What it is: The most popular real estate fund in Nigeria.
    • Why it’s good: It owns big commercial buildings and apartments in Lagos and Abuja. Because many people trade it, it is easier to buy and sell on your phone app when you need your cash back quickly.
    • Who it’s for: Anyone who wants a steady, safe investment that isn’t hard to cash out.

    2. SFS REIT (Best for Regular Cash Payouts)
    • What it is: A fund focused heavily on collecting rent and handing it directly to investors.
    • Why it’s good: They pay out over 90% of all the rental income they collect straight into your pocket.
    • Who it’s for: People who want regular dividend payouts to spend or reuse.

    If you want the safest, easiest REIT to start with, buy UPDC REIT. If you want the highest rental income payouts, look into SFS REIT.

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  3. Abdulbasit
    Contributor Civil Engineer | Halal Investing Educator

    There are a few REITs listed on the Nigerian Exchange that investors can look at, including: • UPDC REIT (UPDCREIT) • SFS REIT (SFSREIT) • Union Homes REIT (UHOMREIT) The NGX currently classifies these under Real Estate Investment Trusts. But I wouldn't say one is automatically “the best.” It dependRead more

    There are a few REITs listed on the Nigerian Exchange that investors can look at, including:

    • UPDC REIT (UPDCREIT)
    • SFS REIT (SFSREIT)
    • Union Homes REIT (UHOMREIT)

    The NGX currently classifies these under Real Estate Investment Trusts.

    But I wouldn’t say one is automatically “the best.” It depends on what you want from the investment: income, long-term growth, liquidity, or exposure to real estate.

    For example, imagine I have ₦100,000 and I don’t have enough money to buy a physical property.

    Instead of trying to raise millions to buy an apartment, I could buy units of a REIT. The REIT pools investors’ money and invests in real estate assets. I can therefore get exposure to real estate without personally buying and managing a building.

    For instance, NGX showed UPDCREIT trading around ₦14.40 on September 4, 2026, while SFSREIT was around ₦418.75.

    So with ₦100,000, the number of units I could buy would be very different depending on the REIT’s market price.

    The important thing is not to choose based only on the cheapest unit price. I would check:

    1. Dividend/distribution history
    2. Value and quality of the underlying properties
    3. Rental income and occupancy
    4. Debt levels
    5. Liquidity and trading volume
    6. Management performance
    7. Current price compared with the value of the underlying assets

    For example, if I buy ₦100,000 worth of a REIT and it pays me ₦8,000 in distributions during the year, while the market value of my units rises to ₦110,000, my total return would be roughly ₦18,000 before applicable costs and taxes.

    But if property values or the REIT’s income fall, the unit price can also fall.

    So, for a beginner, I would research UPDCREIT, SFSREIT and UHOMREIT side by side rather than simply asking which one is the best.

    A REIT can give you real-estate exposure without needing millions to buy a property, but it is still an investment whose price and income can go up or down.

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