SFS Real Estate Investment Trust (SFS REIT) reported a substantial 29% increase in its total income, reaching N272.4 million in the first half of 2026. This marks a rise from N211.2 million recorded in the corresponding period of 2025, according to its H1 2026 interim financial statement filed with the Nigerian Exchange (NGX).
The growth in income was achieved despite significant increases in operating expenses and heavy distribution outflows, which subsequently impacted the Trust’s liquidity. The fund benefited from stronger rental and investment income.
A breakdown of the income streams shows rental income rose by 16.8% to N122.7 million from N105.1 million a year earlier, reflecting improved earnings from SFS REIT’s property portfolio. Fixed interest income climbed 19.8% to N127.2 million from N106.2 million, surpassing rental income to become the Trust’s largest revenue source.
Additionally, SFS REIT booked a N22.5 million profit from the disposal of an investment property, further boosting its earnings. These factors collectively lifted net income by 20.58% to N200.8 million, up from N166.5 million in the corresponding period of 2025, leading to an improvement in basic earnings per unit to N10.04 from N8.32.
On the expenditure side, administrative and other expenses jumped 60.4% to N71.7 million from N44.7 million. Manager’s fees increased by approximately 56% to N32 million, constituting roughly 45% of total operating expenses and remaining the largest single cost item.
Other notable cost increases included SEC fees, which climbed to N6.35 million from N2.71 million, and a new NGX listing fee of N4.94 million. Annual report publication and dividend-related expenses amounted to N8.74 million, while other administrative expenses stood at N10.98 million, and fund rating expenses more than doubled to N2.5 million.
The Trust’s total assets declined 5.2% to N6.72 billion from N7.08 billion at the end of 2025. Investment properties remained the dominant asset class, valued at N5.51 billion, representing about 82% of total assets.
However, investment securities surged 231% to N1.23 billion from N371.5 million, indicating a growing shift towards financial instruments. Cash and cash equivalents fell sharply by 88% to N109.5 million from N931 million, dragging current assets down to N111.2 million against current liabilities of N619.4 million, signaling near-term liquidity pressure.
Net assets attributable to unitholders slipped 5.7% to N6.10 billion from N6.46 billion. Unclaimed dividends rose 14.5% to N478.6 million, becoming the largest single liability on the balance sheet. For the six months ended June 30, 2026, unclaimed dividend distribution jumped to N60.471 million, up from N5 million in the corresponding period of 2025.
Revenue reserves fell to N613.9 million from N979.2 million following distributions paid during the period. Distribution payments to unitholders increased to N566 million from N430 million, and the Trust invested N718.2 million into securities, contributing to an overall net cash outflow of N821.4 million for the half year.
SFS REIT’s portfolio continues to be concentrated in Lagos residential assets, including Milverton Lekki, Victory Park Estate, Sapphire Gardens Awoyaya, Bourdillon Court, Victoria Crest Estate, Northern Foreshore Estate, Cromwell Estate, and Maben Estate. Milverton Lekki remains its largest asset, valued at N2.30 billion, followed by Victory Park Estate at N1.08 billion.
Bourdillon Court’s valuation declined to N687.5 million from N825 million after the sale of one of its properties. In its audited results for the year ended December 2025, SFS REIT reported a total comprehensive profit of N4.1 billion, a significant 761.8% increase compared to the N477.09 million recorded in the prior year.
