NREIT’s profit before tax jumps 333.6% to N3.19 billion in Q1 2026

Nigerian Real Estate Investment Trust Fund (NREIT) reported year-to-date pre-tax profit of N3.19 billion for the first quarter of 2026, representing an increase of 333.60% from N736.56 million in the corresponding period of 2025.

For the same period, total comprehensive income was N3.09 billion, up 345.35% from Q1 2025.

The strong bottom-line performance can be attributed to impressive revenue, which grew by 416.5% YoY, reaching N4.45 billion compared to the N861.59 million in Q1 2025.

NREIT announced a quarterly distribution for the quarter ended 31st March 2026 of N1.92 per unit for Series 1 – 4 investors, and N1.50 per unit for Series 5 investors, with a qualification date of 23rd April 2026.

This distribution will be paid to eligible Unitholders on 29th June 2026 and will be payable in the currency in which income is earned. This will be the 21st consecutive quarterly distribution the Fund has made since inception.

Key Highlights (Q1 2026 vs. Q1 2025)

• Revenue: N4.45 billion (Up 416.5% YoY from N861.59 million)
• Operating expenses: N1.26 billion (Up 908.28% YoY from N125.03 million)
• Total expenses: N1.26 billion (Up 908.28% YoY from N125.03 million)
• Profit after tax: N3.19 billion (Up 333.60% YoY from N736.56 million)
• FX loss: N104.84 million (Loss widened 143.94% YoY from N42.98 million)
• Cash and cash equivalent: N10.622 billion +177.24%
• Total assets: N205.899 billion, +4.51%
• Net assets: N189.861 billion, +3.78%
• Members’ funds: N168.195 billion, +4.36%
• Retained earnings: N21.666 billion, -0.48%
• Number of units issued: 1,656,775, +4.29%
• NAV per unit: N114.6, -0.49%

Driving the numbers

NREIT’s earnings growth was driven by rental and other operating income, which increased by 416.5% to N4.45 billion.

The report did not provide revenue figures by industrial and residential segments, making it impossible to determine their individual growth rates or contributions to total income.

• Operating expenses rose to N1.26 billion from N125.03 million, an increase of 908.28%. Costs therefore grew materially faster than revenue, lifting the operating-expense ratio to about 28.31% from 14.51% in Q1 2025.
• Consequently, the pre-tax profit margin declined to 71.70% from 85.49%, despite the strong absolute increase in profit.
• Profit after-tax also stood at N3.19 billion, while an exchange-rate loss of N104.84 million, compared with N42.98 million a year earlier, reduced total comprehensive income to N3.09 billion.

Balance sheet

On the balance sheet, investment property remained unchanged at N187.43 billion, while cash increased by N6.79 billion to N10.62 billion.

• Other receivables rose by 36.53% to N7.85 billion, while distribution payable nearly doubled to N5.98 billion, contributing to the increase in total liabilities to N16.04 billion.

The number of units in issue increased by 4.29% to 1.66 billion following the Series 5 capital raise. Although total net assets increased, NAV per unit declined slightly to N114.60, reflecting the effect of the higher unit count.

Market reaction

NREIT’s share price has remained flat at N103 this year, with a total market capitalization of N171 billion.

At N103, the units traded about 10.12% below the reported NAV of N114.60 per unit.