{"id":8935,"date":"2026-02-05T19:53:35","date_gmt":"2026-02-05T17:53:35","guid":{"rendered":"https:\/\/sareit.co.za\/?p=8935"},"modified":"2026-03-26T09:30:43","modified_gmt":"2026-03-26T07:30:43","slug":"sa-reits-start-2026-on-constructive-footing","status":"publish","type":"post","link":"https:\/\/muddev.co.za\/sareit\/sa-reits-start-2026-on-constructive-footing\/","title":{"rendered":"SA REITs start 2026 on constructive footing"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=”” css_params=””]SA REITs start 2026 on constructive footing as improved sentiment drives sector ahead of sold-out conference<\/strong><\/p>\n

Distribution growth turns positive and balance sheets strengthen as sector momentum builds<\/em><\/p>\n

South African real estate investment trusts (REITs) have maintained their positive trajectory into the new year, delivering a constructive performance in January 2026 as the sector prepares for its premier industry gathering next week.<\/p>\n

According to the latest SA REIT Association Chart Book January 2026, the sector delivered a total return of 0.9% for the month. While lagging the broader equity market, with the All-Share Index rising 3.7%, the performance signals a continued stabilisation following an exceptional 2025.<\/p>\n

Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book, notes the year has begun with renewed investor appetite for yield-sensitive assets.<\/p>\n

\u201cSouth African real estate investment trusts started 2026 on a constructive footing,\u201d says Anderson. \u201cThe 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.\u201d<\/p>\n

Drivers of performance<\/strong><\/p>\n

January\u2019s 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.<\/p>\n

\u201cFrom 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,\u201d Anderson explains. \u201cREITs 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.\u201d<\/p>\n

Company activity and divergence<\/strong><\/p>\n

Performance dispersion remains a key theme. While profit-taking weighed on some of 2025\u2019s 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.<\/p>\n

\u201cREITs such as Attacq, Oasis Crescent, Redefine, Heriot and Growthpoint delivered solid positive returns, supported by factors including resilient retail footfall and ongoing cost containment initiatives,\u201d says Anderson. \u201cOver longer periods, the data continues to highlight a clear recovery trend across most of the sector. Importantly, distribution growth has also turned positive on a rolling basis, signalling the recovery is increasingly being supported by underlying cash flows rather than valuation re-rating alone.\u201d<\/p>\n

Conference sold out as confidence returns<\/strong><\/p>\n

The sector\u2019s renewed momentum is mirrored by unprecedented interest in the upcoming SA REIT Conference 2026, taking place next week Thursday, 12 February, in Johannesburg.<\/p>\n

The sold-out event will see industry leaders gather to pressure-test strategies and chart the path forward. Proudly sponsored by Nedbank Corporate and Investment Banking\u2019s Property Finance division, the conference features keynote speaker Peter Verwer on global REIT dynamics, alongside heavyweights such as strategist and economist Prof Adrian Saville and Attacq CEO Jackie van Niekerk.<\/p>\n

\u201cThis is the room where the industry challenges assumptions and sharpens what comes next,\u201d says Anderson. \u201cThe fact that the conference sold out early underscores the shift in the sector. We have moved beyond survival mode and are firmly back to discussing growth, data monetisation and the future of South African property.\u201d<\/p>\n

Outlook<\/strong><\/p>\n

Looking ahead, Anderson believes the sector is well-positioned, despite expected volatility.<\/p>\n

\u201cThe sector enters 2026 in a far stronger position than in recent years. Balance sheets are generally healthier; asset quality has improved through active portfolio management and valuations remain compelling relative to both equities and bonds. The January data reinforces the view that SA REITs are once again positioned to play a meaningful role in diversified portfolios as income generation and capital growth prospects continue to normalise,\u201d he concludes.<\/p>\n

Highlights from the SA REIT Chart Book January 2026<\/strong><\/p>\n