… To pay N1.75 per share dividend
Fund holders of the Union Homes Real Estate Investment Trust will receive N1.75 dividend per share for the financial year ended December 31,2018, an increase of 133 percent over 75 kobo per share dividend that was to fund holders in 2017. The fund managers realised N561 million as gross income last year in spite of the negative sentiment that pervaded the market.
That was 5.81 percent higher than the gross income the fund made in 2017. The major component of the gross income for the period was the rental income which added up to N263 million during the reference period, representing 47 percent of the total incomes made by the UH REITs and an increase of 29.18 percent when compared with the rental income generated in 2017.
The manager of the fund also cut down its cost of operations, especially its management fees to N177 million which was lower by 13.70 percent when compared with what was charged in 2017. Net income made by the firm rose by 23 percent to N363,650 in 2018 from N294,706 that was realised in 2017.
However, the fund’s net asset value (NAV) fell from N12.72 billion in 2017 to N9.78 billion in 2018 due to swap of properties during the year.
“Basically, properties were sold in exchange for shares. The shares subsequently cancelled and a book profit of N600 million resulted’, Patrick Illodianya, manager of the fund said.
“Compliance with the asset allocation requirement of the fund (90% in real estate related investment and 10% in liquid asset investments) as at 31st December, 2018 was 85.9% in real estate investments and 4.7% in real estate related, while 9.41% was invested in the liquid asset. The REIT improved in the portfolio mix for the year 2018”, according to a statement issued by the fund manager.
The fund manager optimised the market dynamics in the real estate segment going by a higher demand enjoyed by 1 bed and 2 bed flats near the city. This is in addition to the retail trends that support the development of mid-sized shopping centres.