SFS Real Estate Investment Trust (SFS REIT) has posted impressive results for the 2024 financial year, reporting a 50.26 per cent increase in net income to N477.09 million. This growth was attributed to strong rental income, strategic property sales, and rising interest income.
In a statement issued on Tuesday, the Fund Manager said gross revenue grew by 40.32 per cent to N554.91 million, up from N395.42 million in 2023. The REIT’s solid performance reflects disciplined asset management and consistent returns from its property portfolio.
The Trust’s properties — located in high-demand areas like Chevron, Victoria Garden City (VGC), Awoyaya, and Osapa-London — maintained high occupancy rates throughout the year. These locations contributed significantly to the REIT’s stable rental income, which continues to be its core income stream.
As a result of the strong financial showing, SFS REIT declared a dividend of N21.50 per unit for 2024, representing a 48.28 per cent increase from the N14.50 per unit paid in 2023. This move underscores the Fund’s continued commitment to delivering value to unitholders.
The REIT also reported a total return of 98.27 per cent, combining both capital gains and dividends, which further demonstrates the fund’s ability to generate income and long-term capital appreciation. Its net asset value rose to N2.78 billion, showing a 7.21 per cent growth compared to the previous year.
According to the Fund Manager, “This year’s performance reflects our strategy of disciplined asset management and sustainable income generation. We remain focused on enhancing returns while preserving investor capital.”
In addition to operational growth, the REIT also grew its revenue reserve by 32 per cent, increasing to N783.88 million in December 2024, from N593.57 million a year earlier. This signals stronger earnings retention and provides a buffer for future distributions or reinvestment opportunities.
SFS REIT’s strategy has focused on maintaining a resilient property portfolio, ensuring tenant satisfaction, and taking advantage of market opportunities such as selective property disposals and interest-bearing investments. These efforts appear to be paying off in the face of a challenging real estate environment, especially in Lagos where rent costs continue to rise.
