Professional Practice of Portfolio Management in Nigerian Real Estate Investment Companies

This study examines the professional practice of portfolio management in Nigerian real estate investment companies, evaluating strategic portfolio composition decisions, asset allocation frameworks, risk management approaches, and performance monitoring systems adopted by leading property investment firms. The Nigerian real estate investment landscape has been shaped by macroeconomic volatility, currency instability, and infrastructure gaps that impose unique portfolio management challenges distinct from those in more mature real estate markets. The study employs a qualitative case study design, conducting structured interviews with portfolio managers and chief investment officers at eight registered real estate companies with diversified property portfolios, including listed and unlisted entities operating across Lagos, Abuja, and Port Harcourt. Interview themes covered portfolio composition rationale, asset diversification strategy, risk measurement tools, valuation frequency, liquidity management, and exit strategy planning. Findings reveal that Nigerian real estate portfolio managers adopt predominantly income-oriented strategies, favouring commercial and mixed-use assets for yield stability over capital growth assets. Geographic diversification is limited in practice, with portfolio concentration in Lagos for the majority of firms. Formal risk management frameworks are present in larger firms, particularly those with international institutional investor partners, but are largely absent in domestically owned companies. Performance attribution analysis is rarely conducted systematically. Recommendations include developing a NIESV-endorsed portfolio management professional competency framework, creating sector-wide market performance benchmarks through an industry consortium, and mandating quarterly portfolio valuations for investment entities managing assets above a defined threshold. Keywords: portfolio management, real estate investment, property portfolio, professional practice, Nigeria.