Assessment of Real Estate Investment Trust Performance in Nigeria

This study assesses the performance of Real Estate Investment Trusts listed on the Nigerian Exchange Group, examining total returns, dividend yields, and portfolio characteristics of Nigerian REITs relative to direct property investment and other capital market instruments. REITs represent a structured vehicle for democratising real estate investment, yet their development in Nigeria has been limited compared to other African markets, and their performance has not been comprehensively assessed at the undergraduate research level in the Nigerian context. The study adopts a quantitative descriptive design, analysing publicly available financial data, annual reports, and unit price records for all listed REITs on the NGX over a five-year period from 2019 to 2023. Performance metrics computed include total return, income return, capital growth, price-to-net-asset-value ratios, and dividend payout consistency. Findings indicate that Nigerian REITs have generated modest but positive returns on average, outperforming treasury bills in two of five years assessed but underperforming the NGX All-Share Index in three years. High management expense ratios and thin trading liquidity are identified as significant performance drags. The underlying property portfolios of Nigerian REITs are concentrated in Lagos office and retail assets, creating geographic and sector concentration risks. The study recommends expanding REIT awareness among retail investors through investor education, revising the REIT regulatory framework to allow development REITs, and diversifying portfolio composition to include residential and logistics assets. Keywords: REIT, real estate investment trust, property investment, Nigeria, capital market.