The focus of this study is to appraise the performance of REITs and the possibility of deploying REITs fund into direct real
estate financing in Nigeria, using Malaysia (a developing nation, with similar characteristics) as benchmark for REITs
performance. The set objectives include determination of factors influencing REITs performance and to propose deployment
of REITs fund to direct real estate financing. The methodology involves in-depth study of REITs development, operations
and performance analysis. The study revealed that REITs return is being determined by both internal and external factors.
Internal factors are business/economic parameters (Size, Leverage, Asset Value, NAV, FFO) while the external factors are
related to business environment (Political Leadership, Social, Security and Infrastructure among others). It was also found
that there is great need for development financing in Nigeria as there are few properties to be acquired into a portfolio by
REITs. REITs performance in Nigeria is on the negative side. This study recommends a linear regression model analysis for
REITs return measurement for simultaneity effect of return determinant factors and forecasting of a benchmark. A
simulation analysis is proposed for the possibility of financing real estate development with REITs fund.