South African real estate investment trusts (REITs) continued their positive run into the new year, posting a steady performance in January 2026.
The SA REIT Association Chart Book for January shows the sector delivered a total return of 0.9% for the month. While this trailed the broader equity market, where the All-Share Index rose 3.7%, the result confirms ongoing stabilisation after a strong 2025.
Investor appetite for yield-focused assets has strengthened at the start of the year.
Improving balance sheets, stabilising distributions and easing funding conditions have supported confidence in listed property. Although economic growth remains modest, predictability has improved, helping restore demand for income-generating assets.
Share-price appreciation, rather than income, drove most of January’s gains.
Easing inflation expectations and a more favourable global interest-rate outlook supported sentiment. A firmer rand and moderating local inflation also helped property stocks, alongside expectations of further interest-rate cuts later in 2026.
On Thursday, SA Corporate Real Estate Fund, Stor-Age Property REIT, Attacq and Burstone Group rose 2.6%, 2.5%, 2.4% and 1.7%, respectively.
Performance dispersion remained evident across the REIT sector. Profit-taking weighed on some of last year’s strongest performers. At the same time, several counters continued to advance. Attacq gained 6.7%, Oasis Crescent rose 4.5%, and Redefine Properties increased 4.0%.
Resilient retail footfall, improving operating metrics and ongoing cost-control measures supported these gains.
Longer-term data continues to point to a broad recovery across much of the sector.
Distribution growth has turned positive on a rolling basis. This shift indicates that cash flows now support the recovery, rather than valuation re-rating alone.
The December 2025 SA REIT Chart Book confirmed the end of a strong year. After returning 35.8% in 2024, the sector added a further 38.6% in 2025. Combined gains over the two years reached 88%.
Dividend growth also returned to double-digit levels after three years of stagnation, supported by better operating conditions and a steadier macroeconomic environment.
The sector enters 2026 in a stronger position than in recent years.
Healthier balance sheets, improved asset quality and more attractive valuations relative to equities and bonds underpin the outlook. While volatility may persist, income prospects have improved.
Market expectations point to medium-term total returns of 12% to 15% per year, with income accounting for most of the performance.
Renewed confidence in listed property has also driven strong interest in the SA REIT Conference 2026, scheduled for 12 February in Johannesburg.
The sold-out event will bring together industry leaders to assess market conditions and discuss the sector’s future. Organisers say discussions have shifted from survival to growth, innovation and long-term strategy.
