SFS Real Estate Investment Trust (REIT) has concluded its 2024 financial year on a high note, exhibiting robust financial performance marked by significant growth across key indicators. The REIT reported a substantial 50.26% surge in net income, reaching N477.09 million compared to the previous year. This impressive performance is attributed to a confluence of factors, including a consistent stream of rental income derived from a stable tenant base, strategic divestment of property assets, and income generated from interest-bearing investments. These combined efforts underscore the effectiveness of the REIT’s management strategy in optimizing its portfolio for maximized returns.
The REIT’s gross revenue witnessed a similarly impressive upswing, climbing by 40.32% to reach N554.91 million, compared to N395.42 million in the preceding year. This growth is primarily attributed to the adept management of the REIT’s assets, underpinned by consistently high occupancy rates and reliable rental collections across its strategically located properties. These properties, situated in prime areas such as Chevron, Victoria Garden City, Awoyaya, and Osapa-London, have proven to be valuable contributors to the REIT’s revenue stream, demonstrating the strength and resilience of its portfolio. This consistent performance demonstrates the REIT’s ability to effectively manage its properties and capitalize on favorable market conditions.
In line with its strong financial performance, SFS REIT has announced a generous dividend payout of N21.50 per unit to its investors. This represents a substantial increase of 48.28% compared to the N14.50 distributed in 2023, signifying the REIT’s commitment to rewarding its investors and sharing the benefits of its financial success. The increased dividend payout reflects the REIT’s confidence in its continued growth prospects and its dedication to delivering value to its stakeholders. This significant increase underlines the REIT’s commitment to maximizing shareholder returns while maintaining a sustainable financial model.
Further highlighting the REIT’s positive financial trajectory, its net asset value (NAV) experienced a commendable 7.21% growth, reaching N2.78 billion. This increase in NAV signifies the appreciation in the value of the REIT’s underlying assets, reflecting the effectiveness of its investment strategy and the overall health of its portfolio. In addition to the dividend payouts, the REIT delivered a remarkable total return of 98.27%, encompassing both dividend income and capital appreciation. This substantial total return underscores the effectiveness of the REIT’s investment approach in generating substantial value for its investors.
The Fund Manager of SFS REIT has attributed the year’s impressive performance to the implementation of a disciplined asset management strategy focused on sustainable income generation. This approach emphasizes the importance of preserving investor capital while simultaneously striving to enhance returns. The REIT’s management remains committed to optimizing its portfolio, identifying strategic investment opportunities, and maintaining a prudent financial approach to ensure long-term value creation for its investors. This strategic vision sets the stage for continued growth and reinforces the REIT’s commitment to maximizing shareholder value.
Furthermore, SFS REIT reported a significant boost to its revenue reserve, which increased by 32% to N783.88 million in December 2024, up from N593.57 million in December 2023. This growth further underscores the REIT’s robust financial health and its ability to generate and retain earnings. The strengthened revenue reserve provides a solid foundation for future investments and enhances the REIT’s ability to weather potential market fluctuations. This financial stability positions the REIT for continued success and reinforces its commitment to delivering long-term value to its investors.
