SFS Real Estate Investment Trust Fund (SFS REIT Fund) achieved its highest net income in 12 years, recording a 51.2% increase to N480.3 million in 2024 from N317.5 million in 2023. The fund, listed on the Nigerian Stock Exchange since 2008, saw a 77% capital appreciation, closing the year at N179.45 per share from N101.38 at the start of 2024. The fund’s income surged to N554.9 million, driven by rental income, fixed-interest earnings, and profits from investment property disposals.
SFS REIT Fund continues to attract pension fund administrators, investment managers, and institutional investors seeking stable real estate returns. The fund focuses on acquiring, leasing, and trading income-generating properties, including residential estates, shopping malls, offices, and hotels. Prime assets such as Victory Park Estate, Sapphire Gardens, and Bourdillion Court in Lekki, Lagos, reported yields between 4.3% and 6.5%, while Maccido Royal Gardens Estate in Abuja was listed for sale.
Despite strong earnings, the fund reported a decline in net cash flow, with cash and cash equivalents dropping to N29.4 million from N755 million due to negative cash flow in investing and financing activities. Operating cash flow fell to N188.9 million from N443 million in 2023, influenced by distributions paid during the year. However, basic earnings per unit grew to N24.02 from N15.88, reflecting the fund’s profitability and resilience in Nigeria’s real estate sector.
Source: BUSINESS DAY