February 16 2026 11:30
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.
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.
Ian Anderson, Head of Listed Property and Portfolio Manager at Merchant West Investments and compiler of the monthly SA REIT Chart Book, said the year began with renewed investor appetite for yield-sensitive assets.
“South African real estate investment trusts started 2026 on a constructive footing,” said 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,” he said.
January’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 said.
“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,” he said.
Performance dispersion remained a key theme. While profit-taking weighed on some of 2025’s top performers, other counters soared. Mall of Africa owner Attacq gained 6.7%, Oasis Crescent managed 4.5% and Redefine 4.0% in gains, supported by improving operational metrics.
“Reits 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,” said Anderson.
“Over 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,” he said.
The sector’s renewed momentum was mirrored by unprecedented interest in the SA REIT Conference 2026, which took place last Thursday in Johannesburg.
“This is the room where the industry challenges assumptions and sharpens what comes next,” said Anderson.
“The 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,” he said.
“The 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,” he said.
Highlights from the SA REIT Chart Book January 2026
- SA REITs’ Total Return (Jan): 0.9%
- All Share Index (Jan): 3.7%
- Top Monthly Performers: Attacq (6.7%), Oasis Crescent (4.5%), Redefine (4.0%), Heriot (3.4%), Growthpoint (3.1%)
- 12-Month Performance Leaders: Delta Property Fund (129.4%), Growthpoint (60.5%), Fairvest B (59.2%)
- Yield Trends: Long bond yields remained range-bound, maintaining an attractive yield differential for SA REITs by historical standards.
The SA REIT Association Chart Books are available for download here.
247@propertyflash.co.za
