{"id":7861,"date":"2026-11-03T16:30:58","date_gmt":"2026-11-03T16:30:58","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/03\/paus-pearl-hostel-records-28-36-yield-highest-among-updc-reits-five-properties\/"},"modified":"2026-11-03T16:30:58","modified_gmt":"2026-11-03T16:30:58","slug":"paus-pearl-hostel-records-28-36-yield-highest-among-updc-reits-five-properties","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/11\/03\/paus-pearl-hostel-records-28-36-yield-highest-among-updc-reits-five-properties\/","title":{"rendered":"PAU&#8217;s Pearl Hostel records 28.36% yield, highest among UPDC REIT&#8217;s five properties"},"content":{"rendered":"<p>Pearl Hostel, which provides accommodation for undergraduate students of Pan-Atlantic University (PAU), has recorded a current yield of 28.36%, the highest among the five properties held by UPDC Real Estate Investment Trust (UPDC REIT).<\/p>\n<p>This is according to UPDC REIT\u2019s property portfolio disclosure for the period ended September 30, 2026.<\/p>\n<p>Located in Sangotedo, Lekki, the hostel has 125 accommodation units and recorded an occupancy rate of 98% during the reporting period.<\/p>\n<h4><strong>Pearl Hostel leads UPDC REIT yields<\/strong><\/h4>\n<p>The figures show a significant difference in the rental yields generated by UPDC REIT\u2019s properties, with Pearl Hostel recording a yield more than twice that of Victoria Mall Plaza 2, which ranked second at 11.54%.<\/p>\n<ul>\n<li>Victoria Mall Plaza 2 is an office block with a reported area of 7,454 square metres and was fully occupied during the period.<\/li>\n<li>Kingsway Building, a retail property on Lagos Island, recorded a current yield of 9% and an occupancy rate of 77%, the lowest among the five assets.<\/li>\n<li>Victoria Mall Plaza 1, a block of flats on Victoria Island with 47 units, generated a current yield of 5.58% and was fully occupied.<\/li>\n<li>Abebe Court, a residential property in Ikoyi with 26 units, recorded the lowest yield in the portfolio at 5.39%, despite also maintaining full occupancy.<\/li>\n<\/ul>\n<p>The REIT\u2019s total net asset value (NAV) stood at N36.20 billion as at September 30, 2026, with the five properties forming its disclosed real estate portfolio.<\/p>\n<h4><strong>Nigeria faces one million-bed student housing gap<\/strong><\/h4>\n<p>Pearl Hostel\u2019s performance comes against the backdrop of a significant shortage of formal student accommodation in Nigeria, where the deficit is estimated at more than 1 million beds, according to Fortren &amp; Company\u2019s Africa Student Housing Report.<\/p>\n<p>The report examined the purpose-built student accommodation (PBSA) market in Nigeria, South Africa, Kenya and Ghana, finding that Africa has about 250,000 formal student beds for a student population of approximately 25 million.<\/p>\n<ul>\n<li>Nigeria has only about 2,839 completed PBSA beds, despite a development pipeline exceeding 45,000 beds.<\/li>\n<li>Less than 9% of Nigerian students are accommodated in formal student housing, while more than 90% depend on informal off-campus accommodation.<\/li>\n<li>South Africa accounts for about 91.8% of Africa\u2019s formal student housing stock, while average occupancy across the four markets is approximately 95%.<\/li>\n<\/ul>\n<p>The report identified limited access to long-term institutional capital, weak public-private partnership frameworks and development risks as constraints on the sector\u2019s expansion.<\/p>\n<h4><strong>Nigeria\u2019s REIT market remains relatively small<\/strong><\/h4>\n<p>UPDC REIT operates in a Nigerian real estate investment trust market that remains relatively small compared with other African markets, despite the growing number of listed and unlisted property investment vehicles.<\/p>\n<ul>\n<li>A report by Fortren &amp; Company on Africa\u2019s REIT market puts the combined market capitalisation of<a href=\"https:\/\/nairametrics.com\/2026\/09\/17\/nigerias-five-reits-worth-230-million-market-cap-in-africas-30-billion-market\/\"> Nigeria\u2019s five REITs at approximately $230 million.<\/a><\/li>\n<li>Nigeria\u2019s REIT market has operated since the establishment of the country\u2019s framework in 2008 and was initially dominated by UPDC REIT, SFS REIT and UHREIT.<\/li>\n<li>Two additional funds entered the market in 2025: Chapel Hill Denham NREIT and the MOFI Real Estate Investment Fund, a hybrid real estate and mortgage fund established by the Federal Government.<\/li>\n<li>The report identifies relatively low REIT yields as a challenge to institutional participation, noting that returns below 8% are often compared with government securities offering yields of up to 15% annually.<\/li>\n<\/ul>\n<p>Pension fund holdings in Nigerian REITs increased by 168% to $50.9 million as of March 2025, indicating growing institutional exposure to the asset class.<\/p>\n<p><a href=\"https:\/\/nairametrics.com\/2026\/03\/10\/nigeria-reit-market-needs-pension-funds-to-unlock-growth-prof-akinsomi\/\">The report identifies stronger institutional participation, including increased pension fund investment,<\/a> as an important factor that could support the expansion of Nigeria\u2019s REIT market.<\/p>\n<h4><strong>South Africa dominates African REIT market<\/strong><\/h4>\n<p>Across Africa, Fortren &amp; Company identifies 49 operational REITs with an estimated market value of $30 billion and a combined listed market capitalisation of approximately $21 billion.<\/p>\n<ul>\n<li>South Africa accounts for more than $27 billion in REIT market value, representing about 92% of the continent\u2019s total.<\/li>\n<li>Nigeria\u2019s estimated market value of $230 million places it well below the continent\u2019s largest market.<\/li>\n<li>Morocco follows South Africa with approximately $700 million in REIT market value.<\/li>\n<li>Kenya has an estimated $250 million, while Egypt has $160 million.<\/li>\n<li>Zimbabwe accounts for about $130 million, Zambia $80 million, Ghana $40 million and Tanzania $30 million.<\/li>\n<\/ul>\n<p>Fortren &amp; Company attributes South Africa\u2019s dominance to its deeper capital markets, stronger institutional participation, better liquidity and more developed regulatory and corporate governance frameworks.<\/p>\n<p>Source: <\/p>\n<div class=\"nSourse\">Nairametrics<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Pearl Hostel, which provides accommodation for undergraduate students of Pan-Atlantic University (PAU), has recorded a current yield of 28.36%, the highest among the five properties held by UPDC Real Estate&hellip; 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