Nigeria REIT delivered a strong first half performance, with profit after tax surging 328.1% to ₦6.05 billion and total income rising to ₦7.97 billion.
The fund declared a ₦1.72-per unit distribution, while total assets climbed to ₦215.8 billion despite a modest decline in NAV per unit.
The Nigeria Real Estate Investment Trust (NREIT), managed by Chapel Hill Denham, recorded a sharp improvement in earnings in the first half of 2026, with profit after tax rising 328.1 per cent year-on-year to ₦6.05 billion.
The real estate investment trust reported profit after tax of ₦6.05 billion for the six months ended June 30, 2026, compared with ₦1.41 billion in the corresponding period of 2025.
Following the results, NREIT declared a distribution of ₦1.72 per unit to investors for the period ended June 30, with payment scheduled for September 8, 2026.
For investors, the distribution is particularly significant because income generation is a central attraction of real estate investment trusts. Rather than requiring investors to purchase and manage properties directly, REITs provide exposure to income producing real estate through units in a professionally managed investment vehicle.
NREIT's balance sheet also expanded during the period. Total assets increased to ₦215.8 billion in June 2026, from ₦197.0 billion at the end of December 2025. The increase was driven largely by higher cash balances and receivables, while investment properties remained broadly stable at ₦187.43 billion.
However, the strong earnings growth came alongside a modest decline in net asset value per unit. NREIT's NAV (NET ASSET VALUE) per unit fell to ₦114.58 in June from ₦115.16 at the end of 2025.
The decline is notable because the number of units outstanding increased by approximately 68 million during the period. While the additional units can support a larger capital base, they also mean the underlying net assets are spread across more units.
Based on the June financial figures, NREIT had net assets of approximately ₦189.83 billion and 1.657 billion units outstanding, producing an NAV of ₦114.58 per unit.
The fund's profitability also improved substantially. Profit after tax represented approximately 75.9 per cent of total income during the period, indicating that a large proportion of reported income translated into earnings. However, operating expenses also increased relative to income, accounting for about 24.1 per cent of total income compared with approximately 18.9 per cent in the first half of 2025.
Liquidity remains an important consideration for investors. Based on current assets of cash and receivables against total liabilities, NREIT had approximately ₦1.09 of liquid assets for every ₦1 of liabilities.
The ₦1.72 distribution represents approximately 1.5 per cent of the June NAV (NET ASSET VALUE) per unit. If a similar distribution were maintained over four comparable periods, the implied annualised yield would be about 6 per cent, although this should not be interpreted as a guaranteed future return.
Overall, NREIT's first-half results show a substantial improvement in earnings and income generation, supported by a larger asset base and a significant distribution to investors. Nevertheless, investors will need to monitor future distributions, operating costs, unit issuance, property valuations and the fund's ability to sustain earnings before drawing conclusions about its longer-term investment value.
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