What are REITs and how do they work?

REITs (Real Estate Investment Trusts) are companies that own, operate, or finance income-generating real estate. They allow you to invest in property portfolios without buying physical buildings. REITs typically pay regular dividends from rental income and must distribute at least 90% of their taxable income to shareholders.

Why focus on data centres and tower REITs for Nigeria exposure?

Nigeria's rapid urbanisation and growing digital economy create massive demand for communication towers and data centres. These infrastructure assets are essential for mobile networks, internet services, and cloud computing. Investing in global REITs that operate this infrastructure provides exposure to Nigeria's growth while offering liquidity and professional management.

What does 'urbanisation' mean and why does it matter for investors?

Urbanisation is the process of people moving from rural areas to cities. In Nigeria, this creates demand for housing, offices, and digital infrastructure like mobile towers and internet facilities. For investors, this trend represents a long-term growth opportunity as cities expand and require more infrastructure to support growing populations.

How do I benefit from investing in companies with African exposure?

Africa has some of the world's fastest-growing economies and youngest populations. By investing in established global companies that operate in or serve African markets, you can participate in this growth story while benefiting from the stability and liquidity of companies listed on major exchanges like the NYSE or NASDAQ.

What is market cap and why does it matter?

Market cap (market capitalisation) is the total value of a company's shares. It's calculated by multiplying the share price by the number of shares outstanding. Larger market cap companies are typically more established and stable, while smaller ones may offer higher growth potential but with increased risk.

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Best REITs Nigeria: Beyond Traditional Property

Africa's rapid urbanization is creating massive demand for new housing, offices, and infrastructure, offering a significant growth opportunity for investors. This basket provides exposure to this trend through US and EU-listed global real estate giants, asset managers, and technology firms shaping Africa's property markets.

Han Tan | Market Analyst

Updated today | Published at September 10