UPDC REIT's Pearl Hostel tops portfolio yields as student demand holds
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Pearl Hostel in Sangotedo, Lekki, returned a current yield of 28.36% in the period to September 2026, more than double the 11.54% of Victoria Mall Plaza 2, according to UPDC REIT's latest portfolio disclosure.
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), according to the trust's property portfolio disclosure for the period ended September 30, 2026.
The hostel, located in Sangotedo, Lekki, has 125 accommodation units and recorded an occupancy rate of 98% during the reporting period. Its yield was more than twice that of Victoria Mall Plaza 2, which ranked second at 11.54%, highlighting the wide spread in returns across the REIT's portfolio.
UPDC REIT's total net asset value stood at N36.20 billion as at September 30, 2026, with the five properties forming its disclosed real estate portfolio.
The performance comes against a significant shortage of formal student accommodation in Nigeria, where the deficit is estimated at more than one million beds, according to Fortren & Company's Africa Student Housing Report. The report, which examined the purpose-built student accommodation market in Nigeria, South Africa, Kenya and Ghana, found that Africa has about 250,000 formal student beds for a student population of approximately 25 million.
Fortren identified limited access to long-term institutional capital, weak public-private partnership frameworks and development risks as constraints on the sector's expansion. It also pointed to stronger institutional participation as a factor that could support the growth of Nigeria's REIT market, where pension fund holdings rose 168% to $50.9 million as of March 2025.
Across Africa, the report identifies 49 operational REITs with an estimated market value of $30 billion and a combined listed market capitalisation of about $21 billion, with South Africa dominating on the back of deeper capital markets, stronger institutional participation and better liquidity.