SFS Real Estate Investment Trust has released its audited results for the year ended December 2025, reporting total comprehensive profit of N4.1 billion, reflecting a strong financial performance.
This marks a significant 761.8% increase compared to the N477.09 million recorded in the prior year, highlighting a sharp turnaround in earnings and improved overall profitability.
The growth was largely driven by a N3.4 billion fair value gain on investment property, which boosted bottom-line performance despite a noticeable rise in operating expenses during the year.
During the period, the fund expanded its portfolio by acquiring Northern Foreshore Estate in Lekki for N130 million, bringing its total number of assets to eight.
Key Highlights (2025 vs 2024)
- Total income: N717.3 million, up 29.28% year-on-year
- Total operating expenses: N88.8 million vs N77.8 million
- Net income: N628.4 million, up 31.73% year-on-year
- Fair value gain on investment properties: N3.4 billion vs nil in prior year
- Total comprehensive profit: N4.1 billion, up 761.8% year-on-year
- Proposed distribution per unit: N28.30 vs N21.50
- Investment properties: N5.5 billion, up 178.58% year-on-year
- Total liabilities: N619.9 million vs N692.2 million
Driving the numbers
A review of the Trust’s financials shows total income rose to N717.3 million from N554.9 million, driven by stronger core earnings and improved contributions across key income streams.
- Profit from disposal of investment properties accounted for N298.8 million, up 73.36%.
- Rental income contributed N220.8 million while interest income added N197.6 million, with Milverton Estate emerging as the top-performing asset, generating N57.1 million income and valued at N2.2 billion.
Operating expenses increased by 14.2% to N88.8 million, largely due to a manager’s fee of N45.2 million, reflecting higher costs associated with managing an expanding asset base.
After expenses, net income rose to N628.4 million from N477.09 million, and when combined with a N3.4 billion fair value gain, total profit reached N4.1 billion.
Consequently, the Trust proposed a final distribution of N28.30 per unit, up from N21.50, signaling improved returns to investors.
On the balance sheet, total assets climbed to N7.08 billion, with investment properties accounting for N5.5 billion, reinforcing the Trust’s asset-heavy structure.
Total liabilities declined to N619.9 million from N692.2 million, while unitholders’ equity surged to N6.4 billion from N2.7 billion, reflecting a strengthened financial position.
Market reaction
Shares of SFS Real Estate Investment Trust on the Nigerian Exchange have yet to reflect the recently released results, maintaining largely flat price action since November 2025.
The Trust is currently priced at N418.8 per unit.
