27 August 2026
Viktor Boichuk talks real estate investing at InvestFest
#S1 REIT
On August 20, S1 REIT Chief Commercial Officer Viktor Boichuk joined industry experts at the InvestFest online conference for a panel discussion titled "Buying square meters vs. buying a REIT share: Which real estate generates real returns?"
The panel featured Viktor Boichuk (Commercial Director at S1 REIT), Viktoriia Bereshchak (Real Estate Market Observer), and Viktor Zaboienko (Co-founder and CEO of FERO Development). The discussion was moderated by Vitalii Patsan (Education Project Manager at Minfin Academy).
Boichuk noted that recent years have fundamentally transformed how Ukrainians approach real estate investment. Investors have grown not only more cautious, but significantly more discerning about the properties they choose. While square-foot pricing, construction timelines, and projected resale values used to be the primary focus, today’s investors closely evaluate features like air-raid shelters, energy autonomy, grid backup, and robust surrounding infrastructure.
From whole apartments to fractional ownership
Boichuk highlighted the paradigm shift from traditional property ownership to a REIT-based model, comparing the evolution to the shift in how people consume digital content. Just as consumers moved from purchasing physical satellite dishes to enjoying collective, subscription-based services, real estate is shifting toward managed models.
Investors no longer need to buy an entire property; instead, they can purchase a share through a REIT and leave the leasing, operations, and day-to-day management to a professional team.
"Ukraine is only at the beginning of its REIT journey," Boichuk noted. "For comparison, the U.S. REIT industry has been running for over 60 years and is a cornerstone of the investment market. Today, according to Nareit, about 170 million Americans - roughly half the country - directly or indirectly invest in REITs."
"We want Ukraine to keep pace with these global trends. That’s why we launched S1 REIT - an investment company designed to make professionally managed real estate accessible to private investors."
He emphasized that accessibility, diversification, exposure to high-grade professional assets, and zero operational overhead are the primary advantages of the fund model.
Deconstructing yield: where does the return come from?
During the session, Boichuk stressed the importance of looking beyond a fund's headline yield to understand the underlying drivers. For completed real estate funds, returns are built on rental cash flow and asset appreciation. For properties still under development, early-stage returns are driven primarily by capital appreciation as construction advances.
"Looking at our S1 VDNG REIT, our financial model originally projected an average annual yield of 8.2% - roughly 75% driven by rental income and 25% by asset appreciation," Boichuk explained. "However, the fund's actual yield has reached 16.4%."
"This was made possible primarily by a significant surge in Kyiv's rental rates throughout 2025, despite all challenges and shelling. As a result, the income structure has shifted naturally: today, about 50% comes from rental yields and 50% from capital growth."
Diversification without heavy capital requirements
Another major advantage of the fund model is the ease of portfolio allocation. Through collective investment vehicles, investors gain exposure to residential and commercial real estate, land, energy projects, and more - all without needing massive amounts of starting capital.
Ultimately, the panel agreed that choosing between direct property purchase and a REIT depends entirely on an investor's personal strategy. However, the REIT model offers a streamlined path to professional-grade real estate with a lower entry barrier, built-in diversification, and complete freedom from operational headaches.
Watch the full panel discussion at the following link:
