Pearl Hostel, which supplies lodging for undergraduate college students of Pan-Atlantic University (PAU), has recorded a present yield of 28.36%, the highest among the five properties held by UPDC Real Estate Investment Trust (UPDC REIT).
This is in line with UPDC REIT’s property portfolio disclosure for the interval ended September 30, 2026.
Located in Sangotedo, Lekki, the hostel has 125 lodging models and recorded an occupancy charge of 98% throughout the reporting interval.
Pearl Hostel leads UPDC REIT yields
The figures present a major distinction within the rental yields generated by UPDC REIT’s properties, with Pearl Hostel recording a yield greater than twice that of Victoria Mall Plaza 2, which ranked second at 11.54%.
- Victoria Mall Plaza 2 is an workplace block with a reported space of seven,454 sq. metres and was absolutely occupied throughout the interval.
- Kingsway Building, a retail property on Lagos Island, recorded a present yield of 9% and an occupancy charge of 77%, the bottom among the five property.
- Victoria Mall Plaza 1, a block of flats on Victoria Island with 47 models, generated a present yield of 5.58% and was absolutely occupied.
- Abebe Court, a residential property in Ikoyi with 26 models, recorded the bottom yield within the portfolio at 5.39%, regardless of additionally sustaining full occupancy.
The REIT’s complete web asset worth (NAV) stood at N36.20 billion as at September 30, 2026, with the five properties forming its disclosed actual property portfolio.
Nigeria faces one million-bed pupil housing hole
Pearl Hostel’s efficiency comes towards the backdrop of a major scarcity of formal pupil lodging in Nigeria, the place the deficit is estimated at greater than 1 million beds, in line with Fortren & Company’s Africa Student Housing Report.
The report examined the purpose-built pupil lodging (PBSA) market in Nigeria, South Africa, Kenya and Ghana, discovering that Africa has about 250,000 formal pupil beds for a pupil inhabitants of roughly 25 million.
- Nigeria has solely about 2,839 accomplished PBSA beds, regardless of a growth pipeline exceeding 45,000 beds.
- Less than 9% of Nigerian college students are accommodated in formal pupil housing, whereas greater than 90% rely upon casual off-campus lodging.
- South Africa accounts for about 91.8% of Africa’s formal pupil housing inventory, whereas common occupancy throughout the 4 markets is roughly 95%.
The report recognized restricted entry to long-term institutional capital, weak public-private partnership frameworks and growth dangers as constraints on the sector’s growth.
Nigeria’s REIT market stays comparatively small
UPDC REIT operates in a Nigerian actual property funding belief market that is still comparatively small in contrast with different African markets, regardless of the rising variety of listed and unlisted property funding autos.
- A report by Fortren & Company on Africa’s REIT market places the mixed market capitalisation of Nigeria’s five REITs at approximately $230 million.
- Nigeria’s REIT market has operated for the reason that institution of the nation’s framework in 2008 and was initially dominated by UPDC REIT, SFS REIT and UHREIT.
- Two further funds entered the market in 2025: Chapel Hill Denham NREIT and the MOFI Real Estate Investment Fund, a hybrid actual property and mortgage fund established by the Federal Government.
- The report identifies comparatively low REIT yields as a problem to institutional participation, noting that returns beneath 8% are sometimes in contrast with authorities securities providing yields of as much as 15% yearly.
Pension fund holdings in Nigerian REITs elevated by 168% to $50.9 million as of March 2025, indicating rising institutional publicity to the asset class.
The report identifies stronger institutional participation, including increased pension fund investment, as an vital issue that would assist the growth of Nigeria’s REIT market.
South Africa dominates African REIT market
Across Africa, Fortren & Company identifies 49 operational REITs with an estimated market worth of $30 billion and a mixed listed market capitalisation of roughly $21 billion.
- South Africa accounts for greater than $27 billion in REIT market worth, representing about 92% of the continent’s complete.
- Nigeria’s estimated market worth of $230 million locations it properly beneath the continent’s largest market.
- Morocco follows South Africa with roughly $700 million in REIT market worth.
- Kenya has an estimated $250 million, whereas Egypt has $160 million.
- Zimbabwe accounts for about $130 million, Zambia $80 million, Ghana $40 million and Tanzania $30 million.
Fortren & Company attributes South Africa’s dominance to its deeper capital markets, stronger institutional participation, higher liquidity and extra developed regulatory and company governance frameworks.
