Lazyyouth4u:


The very rich one in that same Australia. The one that your father trained. The one with two big warehouses and landed properties in Lagos.

What about your Aunty in the USA?

If these close family members can’t help you with their statements, why do you think it is strangers on an anonymous forum that will send you their account statements in this day and age?

Mind you, many of us here are audio big men and women o. We are very wealthy on NL but we drink garri with guguru and epa in our ‘face me i face you’ while enjoying melodious sounds from those wicked mosquitoes inside heat for darkness at night. Some of us dey abroad dey collect government benefits but come on NL to pose as rich while some of us dey sell fake products to yahoo boys just to survive.

My sister, many of us audio rich people here are like you trying very hard to check out from this country o but we do it ‘codedly’. This poverty na everywhere e dey

Hian, Lol at audio billionaires drinking garri Una go kill person with laugh for Nairaland.com, wetin person no go read for Nairaland.com

condomuser:
Anyday any of the person's here start meeting together for any reason, it maybe the start of the greatest KIDNAPPING of all time.
A lot of people on this thread are thieves, cultists, arm robbers in real life. They are just waiting for you to slip slightly so they chop you mugu.

Do not fall for it . On the other hand, this thread is filled with lots of audio billionaires and millionnaires not knowing if they unfortunately get kidnapped, the same masterminder of the kidnap will care less of your worth rather eyes will be on the N100 million ransome.

On the other hand, what gives people the guts to come to a faceless forum to seek documented assistance still baffles me, is it the belief in miracles? It is wrong to seek for such in an open platform such as this, it's a personal matter and should never be brought openly unless a person with keen interest requests to sponsor such individual.

Lol

Gather for where, which billionaire has time for that, make maga use another format

In today's Nigeria, if one has gone through the scars of gathering only #1 million.....there are so many cheap calls he glosses over

The most difficult is usually the first time, that's y I fear for newbies

No oldies will fall for all the format I see on nairaland

Lazyyouth4u:


The very rich one in that same Australia. The one that your father trained. The one with two big warehouses and landed properties in Lagos.

What about your Aunty in the USA?

If these close family members can’t help you with their statements, why do you think it is strangers on an anonymous forum that will send you their account statements in this day and age?

Mind you, many of us here are audio big men and women o. We are very wealthy on NL but we drink garri with guguru and epa in our ‘face me i face you’ while enjoying melodious sounds from those wicked mosquitoes inside heat for darkness at night. Some of us dey abroad dey collect government benefits but come on NL to pose as rich while some of us dey sell fake products to yahoo boys just to survive.

My sister, many of us audio rich people here are like you trying very hard to check out from this country o but we do it ‘codedly’. This poverty na everywhere e dey

We are very wealthy on NL but we drink garri with guguru and epa. This person no go kill us here o.

Lazyyouth4u:


To be fair to the poor boy, I decided to do some investigation .

He never pretended to be the girl Helpyom. He asked directly on this thread and he was made a promise and was strung along. Any normal person with blood in his veins would be upset.

No be today kidnapping and threat to security start na. Why make such a promise to a stranger in the first place?

Olofofo , Mrs CIA,CID, inspector General police of people lifes, digging up peoples past posts to score some cheap and meaningless points . Who ask for your investigative journalism?, you better go get engaged in something meaningful to give your life some worths ( good tips:start by creating a gossip blog). You terms everyones here audio millionaires because you worth NOTHING, you so much hate what you don't have but dying to acquire , you know about every crimes so you must be one way involves in some.

Always trying to upturn every good investments ideals when you never contributed any meaningful ideas here than to gossip, talk people down and sees negative motives in every good points. Some people taking benefits in Ireland, how is that your headache mofos, go get a life Mrs career police. You don't worth my time so don't quote me

EarlyCareer:


very correct.

In the Nigerian context, it may not be a wise investment decision to buy REITs. When SFS REITs launched, the price was 100 naira or so, now it is 68 naira. If you invested at the initial offering, you would have lost almost 50% of your capital, and dividends are not fixed in price too.

Selling REITs when you need money na war. Which is why you see even elders of this forum marketing it to you, as dem wan offload their REiTs bags. (So sorry, but I could not resist the slight jab.)

As per renting out a house, using some of the tips here is good, but as usual, don't follow people blindly. I don't own a house but I know that there are bad corporate workers who are tenants and there are good pastors and business people as tenants. What is the percentage of all people who are not executives that are bad tenants? Location is also a factor too. A person with a house in Igando, ikorodu, is also looking for corporate tenant. That's funny.

In summary, do your own due diligence. Trust your intuition.

Brainbox0806:


Olofofo , Mrs CIA,CID, inspector General police of people lifes, digging up peoples past posts to score some cheap and meaningless points . Who ask for your investigative journalism?, you better go get engaged in something meaningful to give your life some worths ( good tips:start by creating a gossip blog). You terms everyones here audio millionaires because you worth NOTHING, you so much hate what you don't have but dying to acquire , you know about every crimes so you must be one way involves in some.

Always trying to upturn every good investments ideals when you never contributed any meaningful ideas here than to gossip, talk people down and sees negative motives in every good points. Some people taking benefits in Ireland, how is that your headache mofos, go get a life Mrs career police. You don't worth my time so don't quote me

I'm telling, very negative personality, every investment is bad, oya let us keep money in bank, he will come with inflation, no meaningful contribution at all

Brainbox0806:

Go and work on your grammar and writing skills then re-write for me to make sense of the senseless gibberish you wrote up there

Bloody driver like you. You think say I don’t know your real moniker here? Have you noticed that all your likes on this moniker come from bashing Lazyyouth?

Kwantinue!

richforever123:


I'm telling, very negative personality, every investment is bad, oya let us keep money in bank, he will come with inflation, no
meaningful contribution at all

My former number 1 fan. I became your enemy the moment I simply said that one of your so called fintech asset managers will go bust soon. Na so I pour sand sand for your gari? How much commission you dey collect?

Anyway, na you sabi and I stand by it o. At least one of those so called fintech asset managers will go bust very soon. I will remind you when the time comes

oluayebenz:


This guy ehn

They say I’m a lady

When you expose their tricks to cajole gullible newbies, they find ways to attack. Make una kwantinue na. I do this for fun

The emptiest barrel makes the loudest noise.

#MessageForEducatedFools

When the French man can't speak English...the African respects him

When the Russian, Spanish, or the Italian man can't speak English...the African respects them.

But, when an African man can't speak English...he is considered a joke, uneducated, illiterate, unintelligent, backwards, and unfit, by his people
The same people who respect all the others!

Is knowledge and proficiency in the use of English Language and Grammar a measure of intelligence, education, knowledge and wisdom?

Why do we judge and condemn ourselves based on some trivial external characteristics?
Good day beautiful and Handsome peeps.

cleverland:
The emptiest barrel makes the loudest noise.

Sholapey aka Cleverland Aka myhelper1. Well done o. Kwantinue using your monikers to market SFS REIT and attack Lazyyouth na

Even though Yemi, Patrick and Dimeji are my personal people, I couldn’t have been as creative as you were except I had ulterior motives

Ulterior motives of dumping my shares to Nairaland newbies

Lazyyouth4u:


Sholapey aka Cleverland Aka myhelper1. Well done o. Kwantinue using your monikers to market SFS REIT na.

Even though Yemi, Patrick and Dimeji are my personal people, I couldn’t have been as creative as you were except I had ulterior motives

Ulterior motives of dumping my shares to Nairaland newbies

[s][/s] hey hey.. i no follow for this oo... However, you made me realises how reit is very illiquid... really this life ehnn... Everything is interest.... what if the other side of the coin is for people to buy from some long time holders... too much sense will not kill somebody..... Just rational thoughts ....

handsomebolanle:


[s][/s] hey hey.. i no follow for this oo... However, you made me realises how reit is very illiquid... really this life ehnn... Everything is interest.... what if the other side of the coin is for people to buy from some long time holders... too much sense will not kill somebody..... Just rational thoughts ....

Na so we see am o

You know this argument does not hold water right?
The market does not allow direct sale person to person because it is an exchange, so how will the person offload on just you when he does not control when you are interested in buying so that he can ensure that it is his own specially that you buy.

Everyone who has some small knowledge of stock market will know that some stocks sell faster than others. Even GTB sell faster than Vitafoarm and expectedly REIT are likely to also be low in the liquidity pecking order but I hate to think that because someone shared his or her opinion on a particular investment option that he wants to dump it on you when he or she has no way of controlling who buys what he or she is offering on the exchange.

handsomebolanle:


[s][/s] hey hey.. i no follow for this oo... However, you made me realises how reit is very illiquid... really this life ehnn... Everything is interest.... what if the other side of the coin is for people to buy from some long time holders... too much sense will not kill somebody..... Just rational thoughts ....

ojesymsym:
You know this argument does not hold water right?
The market does not allow direct sale person to person because it is an exchange, so how will the person offload on just you when he does not control when you are interested in buying so that he can ensure that it is his own specially that you buy.

Everyone who has some small knowledge of stock market will know that some stocks sell faster than others. Even GTB sell faster than Vitafoarm and expectedly REIT are likely to also be low in the liquidity pecking order but I hate to think that because someone shared his or her opinion on a particular investment option that he wants to dump it on you when he or she has no way of controlling who buys what he or she is offering on the exchange.

Maybe right.. but Personally I have many times seen correlation between discussions on this thread and stock movement....

You can call it coincidence.... its just my observation that could be wrong...

I'm indifferent about peoples opinion here.. but I have for the past weeks been looking at reit investment because my father have some (over 10years for dividend) but I never saw it from the illiquid angle..... we keep learning

Just indifferent sir....

ojesymsym:
You know this argument does not hold water right?
The market does not allow direct sale person to person because it is an exchange, so how will the person offload on just you when he does not control when you are interested in buying so that he can ensure that it is his own specially that you buy.

Everyone who has some small knowledge of stock market will know that some stocks sell faster than others. Even GTB sell faster than Vitafoarm and expectedly REIT are likely to also be low in the liquidity pecking order but I hate to think that because someone shared his or her opinion on a particular investment option that he wants to dump it on you when he or she has no way of controlling who buys what he or she is offering on the exchange.

If you think it through, you will understand. But because it is lazyyouth, you refuse to because of the bias against the person.

Do you know the magic you can do by successfully marketing an illiquid stock on a public forum full of people with cash looking for where to put it? You are seriously underestimating the number of people that read these investment threads.

If they decide to go and buy the illiquid stocks, demand will push up the price and a market is created for people trying to sell on the exchange. It doesn’t have to be a direct sale.

Ps: it is called illiquid for a reason. Sellers find it very difficult to sell the shares on the exchange until buyers show up.

Lazyyouth4u:


If you think it through, you will understand. But because it is lazyyouth, you refuse to because of the bias against the person.

Do you know the magic you can do by successfully marketing an illiquid stock on a public forum full of people with cash looking for where to put it? You are seriously underestimating the number of people that read these investment threads.

If they decide to go and buy the stocks, demand will push up the price and a market is created for people trying to sell on the exchange. It doesn’t have to be a direct sale.

I follow on this with no iota of doubt...The kind people on this thread.... Chai.. I know sey I be crayfish.... ..

Lazyyouth4u:

I'm glad your acquisition is related to my say in telling people about REIT and not of any criminal activities.

And for the monikers, I would like to prove to you in person and also to give you a chance to say your reasons for being so frustrated. Maybe i can cansel you, you don't have to be a lazyyouth you know. let us meet up in a place around Herbert marcauley, sabo Yaba.

cleverland:
I'm glad your acquisition is related to my say in telling people about REIT and not of any criminal activities.

And for the monikers, I would like to prove to you in person and also to give you a chance to say your reasons for being so frustrated. Maybe i can cansel you, you don't have to be a lazyyouth you know. let us meet up in a place around Herbert marcauley, sabo Yaba.

Sholapey Aka myhelper1, Herbert ‘Marcauley’ dey Ireland? You are very funny

No be only ‘cansel’ na ‘cancel’

You need help!

cleverland:
You need help!

Says the person that tried to deceive newbies with two monikers exchanging comments?

Sholapey Aka Myhelper 1 o, you are cracking me up o

ojesymsym:
You know this argument does not hold water right?
The market does not allow direct sale person to person because it is an exchange, so how will the person offload on just you when he does not control when you are interested in buying so that he can ensure that it is his own specially that you buy.

Everyone who has some small knowledge of stock market will know that some stocks sell faster than others. Even GTB sell faster than Vitafoarm and expectedly REIT are likely to also be low in the liquidity pecking order but I hate to think that because someone shared his or her opinion on a particular investment option that he wants to dump it on you when he or she has no way of controlling who buys what he or she is offering on the exchange.

God bless you for the above writeup...you can imagine the level of some people's ignorance.

They keep fighting after their tricks are exposed

I dare anyone to try the experiment. Pick a thinly capitalized illiquid stock and successfully hype and market it here with support from one or two so called in house gurus and then go and check the performance after a few days.

You can thank me later

[quote author=Lazyyouth4u post=100110159]

If you think it through, you will understand. But because it is lazyyouth, you refuse to because of the bias against the person.

Do you know the magic you can do by successfully marketing an illiquid stock on a public forum full of people with cash looking for where to put it? You are seriously underestimating the number of people that read these investme




.Let me give you a job beside other room activities which you don't have negativity..Name your price to move any stock not paying dividend to a particular price based on marketing it on all investment thread whether liquid or otherwise.And if you can't,then keep quiet.If you read Emma posts you will realize he has always talked good about performing reits.They said vitafoam was illiquid and still alot made money from it.

[quote author=Biafran4life post=100112578][/quote]That was the most stupid thing I've heard today.
Manipulating a stock just by posting stuff on investment thread.
The girl must think too highly of this place,more example of someone living in an ideal(unrealistic) world.
For the girl to stay one place make e mama dey feed am,she no gree. ....
Na to come here dey form oversabi she knows best.
How Aba today my man?You sell market at all today?

[quote author=Biafran4life post=100112578][/quote]

Who is this one? Clout chaser like you. What do you know about finance? You think say this na main market? Come on get away from here and go follow your kind talk. If not for Nairaland, I swear person like you no fit stand near me. Talk less of talking where I dey. Fear no go let you. On God!

SeaTrade:
That was the most stupid thing I've heard today.
Manipulating a stock just by posting stuff on investment thread.
The girl must think too highly of this place,more example of someone living in an ideal(unrealistic) world.
For the girl to stay one place make e mama dey feed am,she no gree. ....
Na to come here dey form oversabi she knows best.
How Aba today my man?You sell market at all today?

Short dirty boy. Wetin you know? You no go go follow your mates to offload fake drinks from your Oga pick up? Better no let me start with you today. You think say na that small yansh wey dem open wey make you run from that other side? No just try start wetin you no go fit finish o.

Lazyyouth4u:


Short dirty boy. Wetin you know? You no go go follow your mates to offload fake drinks from your Oga pick up? Better no let me start with you today. You think say na that small yansh wey dem open wey make you run from that other side? No just try start wetin you no go fit finish o.

To stay and rant online is easy,I no longer do that as I got bigger.
If you want to talk,you can always schedule a meeting and I will honour it if the location is port harcourt.
If you can still keep this energy when we meet then great.

AN EXPOSITION ON THE CHALLENGES AND PROSPECTS OF REAL ESTATE INVESTMENT TRUSTS IN NIGERIA

Introduction

Globally, there has been a surge in property investments in the past few decades. As of the early 2000s, property investment accounted for the second largest investment sector in the US, next only to fixed-income securities, but larger than shares and the money market[1]. This surge could be explained by the unique benefits offered to property investors such as income stability, capital growth, tax reduction and hedge against inflation which most other traditional investment options such as shares, and bond do not provide.

A REIT is a form of a property/asset backed collective investment scheme which itself constitutes a part of the larger concept of securitization. Essentially, a REIT is a company that owns, and operates income producing real estate asset or properties such as office buildings, residential buildings, shopping malls, tourism related facilities, healthcare facilities, industrial facilities, infrastructures, and warehouses, whose shares are publicly traded in a way similar to any other stock.[2] Simply put, a REIT is a company or a trust that pools fund from individual investors, acquires and operates income generating real estate, and distributes the income derived from their owned properties as dividend.[3]

The origins of REITs is traceable to the United States of America where the US congress in the 1960’s created the  legal framework for REITs with a view to providing affordable access to investment in commercial property to all investors. Over the years, many countries around the world have come to adopt the REITs structure as a component of their securities market. As at 2011, there were 22 countries and territories around the world that have established REIT regimes.

In Nigeria, the enactment of the Investment and Securities Act, in the year 2007 paved the way for the introduction of REITs. That same year, the first ever REITs in Nigeria – the N2bn (US$10m) Skye Shelter Fund, was launched following the issuance of guidelines for registration and requirement for operation by the Securities and Exchange Commission (SEC). There are presently three registered REITs in Nigeria namely: Skye Shelter fund, Union Homes, and UACN Property Development Corporation (UPDC).

Within the African REIT context, Nigeria’s REIT market since 2007 rank amongst the oldest. This has however not translated into growth and acceptability of REITs in the country. In fact, other African countries that subsequently introduced REITs have record more successes than Nigeria in terms of acceptability and capitalization of REITs. It is against this backdrop that this article intends to examine and provide insights on the performance of Nigerian REITs, as well as provide recommendations on how to further improve REITs performance in the country

Legal Regime for the Registration of REITs in Nigeria

The Investment and Securities Act 2007[4] (ISA) along with the subsidiary rules made pursuant thereto,[5] constitutes the statutory framework for the registration and regulation of REITs in Nigeria. Accordingly, Section 193 of the ISA defines REIT as:

A body corporate incorporated for the sole purpose of acquiring intermediate or long term interests in real estate or property development [and] may raise funds from the capital market through the issuance of securities.

 Similarly, Section 194 of the Investment and Securities Act 2007 states that:

A real estate investment company or trust may be registered by the commission if it:

(a) is a body incorporated under the Companies and Allied Matters Act.

(b) has a capital and reserve as prescribed by the commission from time to time.

(c) carries on business as a collective investment scheme solely in properties.

(d) complies with the requirement prescribed by the Commission through its rules and regulations made from time to time.

 

However, for a REIT to be registered by Securities and Exchange Commission (SEC), at least 50% of its total shares subscription must have been subscribed.[6]

 

In the same vein, Rules 511-542 of the consolidated SEC Rules 2013 make elaborate and specific provisions on the registration of REITs by the Securities and Exchange Commission.

 

 

Under the present legal regime, the following are the major categories of REITs:

Publicly Traded REITs/ Private REITs

Public REITs are REITs that are fully registered and regulated by the Security and Exchange Commission. They are typically listed on the Nigerian Stock Exchange and their securities/units of investments are publicly traded.

On the other-hand, Private REITs are privately owned REITs that are not listed nor traded on the Nigerian Stock Exchange. They are also not permitted to offer their securities to the public and only rely on private placement directed at high net-worth individuals in raising funds.

Equity REITs/Mortgage REITs

Equity REITs invest primarily in the acquisition and ownership of real estate such as residential apartments, malls/retail outlets, hotels, office/industrial complex, and rely on income generated from the collection of rent, and sales of these properties. Under the consolidated rules made pursuant to the ISA, 75% of the funds held by an equity REIT shall be in real estate, while the remaining 25% may be in real estate related asset.[7]

Mortgage REITs advance loans to mortgage institutions and even individuals for the financing of mortgages. Sometimes, they purchase existing mortgages and mortgage backed securities. At least 75% of the funds held by a Mortgage REIT must be in mortgage assets, while the remaining 25% may be in real estate related assets.[8]

For both Equity and Mortgage REITs, not more than 10% of their total assets shall be in liquid assets.[9]

Parties to a REIT

The following are the primary parties to a REIT transaction:

Issuer/Promoter: This could either be an individual(s) or a company who envisions and registers the REIT. With them lie the powers to appoint trustees for the REIT. The promoter may become an investor by investing his land or asset into the REIT.

Unitholder/Investor: These are private individuals or members of the public who hold equitable interests in a REIT. They are entitled to receive periodic distribution of income and participate in any capital appreciation of the properties that make up the REIT.

Trustee: The trustee is responsible under the Trust Deed for the safe custody of the Assets of the REIT and holds the assets in the name of the REIT. Furthermore, the trustee oversees the activities of the manager and ensures the manager undertakes reporting and disclosures as per the trust deed and relevant regulations.

Manager: The fund manager is appointed to manage and administer the REIT in accordance with the objectives of the REIT as stated in the trust deed. The manager also identifies and recommends investment opportunities to other stakeholders.

Custodian: They are entrusted with the Title documents of the properties that form a REIT for safe keeping.

Property Manager: The property manager is appointed by the REIT manager and is in charge of the daily management of the properties that constitute the REIT and ensuring the properties are in good repairs.

Factors that Adversely Impact REITs Performance in Nigeria

There are broadly two classifications of factors that adversely impact on the performance of REITs, these are: formal factors which are the economic and market factors; and informal factors which encompass socio-political and operating environment.[10] In Nigeria, the following are some of the peculiar factors that impinge REITs performance:

Capitalization (size)

There is a direct correlation between the size in terms of capitalization of a REIT and its viability/potentials for increased revenue. This is hinged on the principle of economies of scale that may favor large REITs in terms of low operational costs and sufficient funding. More so, large REITs are better able to absorb economic shocks and manage economic downturns due to the availability of sufficient capital at their disposal which they can deploy as a buffer. Unfortunately, all of the registered REITs in Nigeria are medium scale REITs in terms of their capitalization. For example the combined market capitalization of the three REITs in Nigeria is US$131 Million,[11] while in the United States, the combined market capitalizations of REITs stands to the tune of US$898.41billion.[12] This hampers the ability of REITs in Nigeria to respond adequately to economic upheavals.

Economic factors

Up until recently, Nigeria was enmeshed in economic recession which contracted the economy by more than 1%.[13] This fact is compounded with the high inflation and interest rates effective in the country. The resultant effect of this economic state of affairs is that there is low liquidity in the country for investments in REITs by potential investors. This may explain the reason why the Haldane McCall REIT was unable to be listed after failing to reach the minimum 50% subscription from the initial public offer. Top Services Limited has also proposed a N20 billion REIT but same is yet to be fully launched. Furthermore, not a few of the properties under REITs are fully occupied. This is because of the decreased earnings of the average Nigerian who many a times find those properties unaffordable.

Infrastructural Challenges

There is no gainsaying that the value of a property is enhanced by the availability of the necessary infrastructural amenities such as good roads, electricity supply, water supply, amongst others. In Nigeria, where such amenities are neither readily available nor accessible, the value of most properties are diminished and this impacts on income derivable either as rent or gains from those properties that constitutes a REIT.

Property Transactions Costs

The cost of perfecting interests/Title in real estate is very expensive in Nigeria. Similarly, the process involved in seeking and obtaining Governor’s consent on transactions bordering on the transfer of legal interests in real estate as provided under the Land Use Act is rigorous and frustrating.  Inevitably, these factors impact adversely on REITs performance, since the primary object of REITs centers on real estate transactions including sale and purchase of real estate assets.

Low Investor Awareness

Many individual investors are oblivious of REITs as an investment option with many associated benefits. Even the few institutional investors who are knowledgeable about REITs still have a poor perception about it and are generally disinclined to invest fully in the scheme. It would have been more desirable if these institutional investors were a little more receptive of REIT investments, as their investment decisions may not only help instill confidence and give credibility to REITs, but also spur other individual investors to follow suit.

Prospects of REITs in Nigeria

Notwithstanding the above highlighted challenges, investment in REITs portends a lot of benefits not just to the investor alone, but to the larger society. Some of these benefits include:

High and Reliable Returns

Returns is essentially the profit derived from an investment and is of three types: income; capital appreciation; and value gain. It has been proven through numerous studies that returns from REITs investment most times combine the three types of returns. [14] For example, an investment in income generating property such as a residential apartment let out to tenants, incorporates the three types of measurable returns. Furthermore, the average global dividend yield for REITs was about 4.3% in September 2012 far above some other traditional investment options.

Tax Benefits

Though there is some sort of ambiguity on the tax regime for REITs in Nigeria,[15] it is generally agreed that the tax treatment for REITs is very advantageous compared to that of other investment options. Income distributed as dividends are exempt from companies income tax, while a withholding tax of 5% is applicable to dividends received by investors. However, undistributed income will be taxed at the corporate tax rate.[16]

 

 

Liquidity and Diversification of Investment Portfolio

Real Estate is classified as an illiquid asset. However, investments in REITs have made it possible to hold liquid interests in real estate which can be transacted on the stock exchange rather than buying properties directly. Furthermore, REITs afford investors the opportunity to invest their funds in different property types across various geographical spread thereby reducing risks and volatility of investment.

Economic Growth

Nigeria presently has a housing deficit of 17 million.[17] Investments in REITs can help reduce this deficit by providing affordable housing to the teeming populace. More so, the real estate industry is intricately connected with other pivotal sectors of the economy such as the construction, service, and consumer industries. Accordingly, a viable and robust real estate investment industry will create jobs and distribute wealth across the country.

Hedge against Inflation

REITs provide an effective and formidable hedge for investments against inflation. This is because real estate income tends to increase in proportion to a corresponding increase in inflationary rates.

Conclusion

A dispassionate assessment of REITs in Nigeria reveals under-performance. This is evident in the number of registered REITs listed on the Nigeria Stock Exchange. Since 2007, when the first REIT was registered, Nigeria presently can only boast of 3 registered REITs. This can be compared with a country like South Africa, where despite the fact that the REIT legislation was passed as recent as 2013, currently boasts of 31 REITs with a combined value of over $31.42 billion.[18] This leaves much to be desired. Similarly, almost all of the 3 registered REITs in Nigeria have been struggling with decreased revenue, and decline in profits distributed as dividends to investors.[19] This has also contributed to the palpable apathy by investors in investing in REITs securities. In the light of the foregoing, the following recommendations are apt:

Adoption of Favourable Economic Policies by Government

The government should endeavor to implement policies that will occasion economic growth. This may include reducing the monetary rates and the cash reserve ratio of banks so as to consequently reduce interest rates and make more money available in circulation. The government should also adopt measures to reduce inflation.

Reduction of Property Transaction Costs

Property transaction costs such as consent fee, registration fee, and capital gains tax should be reduced so as not to erode the income of REITs. Also a special REIT registry may be created and dedicated to handling all REIT related property transactions.[20]

Improved Awareness on REITs

There should be concerted efforts by existing and Prospective REITs on sensitizing investors and the public at large on the immense benefits of investing in REITs securities. This will help stimulate interests in REITs and ultimately improve the capitalization of the REIT market.
Article by Olayinka Alao LLM (Lagos), BL (Abuja), LLB (Lagos)

Thank you for sharing, yagza.

Lazyyouth has a loose nut in her/his head. I honestly do not want to encounter her at all, however the article above vindicates her.

Always do due diligence, people. Not everything we advice here is correct, we are humans after all. We err sometimes.