UPDC REIT post N1 billion revenue, rental yields 4.3% in first 9 months of 2023

UPDC Real Estate Investment Trust, one of Nigeria’s premier real estate companies listed on the NGX reported a rental income of N1 billion in the first 9 months of 2023.

In terms of revenue, the company posted N1.4 billion for the quarter under review up from N1.17 billion same period in 2022. Included in its revenues are income from deposits with banks and an increase in asset values.

The company makes money by acquiring investment properties and then leasing them out in exchange for rent. UPDC has an investment property of about N23 billion up from N22.4 billion a year earlier.

The company’s N1 billion in rental income derives a rental yield of about 4.3% based on the investment property value of N23 billion. When annualized, the rental yield is around 5.6%.

Rental yields in Nigeria average between 6-8% and typically trail behind the inflation rate which currently stands at 26%.

Details of the results

  • Revenue N1.4 billion (2022 9 months: N1.17 billion)
  • Operating Expenses N488.9 million (2022 9 months: N420.3 million)
  • Pre-tax profits N921 million (2022 9 months: N753.1 million)
  • Earnings per share 35 kobo vs 28 kono (2022 9 months)
  • Total Assets N26.8 billion
  • Retained loss N612.2 million

The company declared a dividend of 19kobo per share last August for its shareholders which it paid a month later. The company’s current share price is N3.45 per share and is up 16.95% in the last year.

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