SFS Real Estate Investment Trust (SFS REIT) reported a strong financial performance for the first half of 2026, with total income rising 28.9% to N272.42 million, compared to N211.23 million in the same period of 2025. The growth was primarily driven by higher fixed-income returns, which accounted for nearly 47% of total revenue, and increased rental income. Net income reached N166.49 million, with earnings per unit improving to 10.04 kobo from 8.32 kobo.

Despite the revenue growth, operating expenses surged by 60.2% to N71.66 million due to higher fund management fees and increased regulatory compliance costs. While the REIT maintains a solid property portfolio with high occupancy rates across Lagos, management is aggressively shifting toward financial assets, with investments in securities growing over 231% to N1.23 billion. Consequently, cash and cash equivalents declined by 88% as capital was deployed into these financial instruments and distributions to unitholders.

SFS Real Estate Investment Trust (SFS REIT) reported a 20.6% increase in net income for the first half of 2026, rising to N200.8 million from N166.5 million in the same period of 2025. This growth was driven by a 29% rise in total income, reaching N272.4 million, supported by stronger rental and fixed interest earnings.

Despite the bottom-line growth, the trust faces significant operational and liquidity challenges. Administrative and operating expenses surged by 60.4% to N71.7 million, with manager fees accounting for nearly half of these costs. Furthermore, the fund’s cash position deteriorated significantly, with cash and cash equivalents dropping 88% to N109.5 million. This decline, coupled with current liabilities of N619.4 million, highlights mounting near-term liquidity pressure as the trust increased its distribution payments to unitholders to N566 million. Total assets also slipped 5.2% to N6.72 billion during the period.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.