The real estate portfolio closed the year at UGX 1.56 trillion, translating to 5.0% of assets under management from 6.2% in the previous year. This reduction reflected a dilution in portfolio share rather than a divestment or devaluation, as equities rallied. The real-estate book itself edged higher in value. The portfolio returned about 3.2% during the year. This was mainly attributed to revaluation gains of approximately UGX 36.9 billion; with the Lubowa estate, Temangalo land and Nsimbe land accounting for much of that uplift. Real estate income remained modest, at approximately UGX 16.0 billion, while sales of completed inventory at Lubowa Phase 1 continued through the year leaving only 8 of the 306 units available by end year.

Against this backdrop, the Fund's development pipeline, namely the Pension Towers, Lubowa and Temangalo housing projects, continued to face competition from comparable schemes. The near-term strategy is accordingly focused on advancing these developments selectively, on terms that protect long-term value. Over the medium to long term, however, the Fund will pivot from a development-led to income balanced portfolio management approach. This approach will look to reduce cash drag through strategic acquisitions, off-taker arrangements, and innovative approaches to the affordable housing agenda. Affordable housing anchors the Fund's real-estate ambition and its wider contribution to national development.