UPDC REIT ANNOUNCES N1.1 BILLION FINAL DIVIDEND FOR 2023
Dividend Distribution
- UPDC Real Estate Investment Trust (UPDC REIT) declared a final dividend of N0.22 per unit for 2023, resulting in a total payout of N1.105 billion.
- This represents a 19% increase compared to the 2022 dividend distribution.
- The payout ratio for 2023 is 29.1%.
Eligibility and Payment Details
- Only unitholders listed in the register of members by May 16, 2024, will receive the dividend.
- The register will be closed from May 17th to 23rd.
- Payments will be made on May 24th to unitholders who have completed e-dividend registration.
- Unitholders can register for e-dividends through First Registrars by downloading the form from their website and submitting it to the registrar or their bank.
Profitable Year for UPDC REIT
- UPDC REIT experienced significant growth in 2023:
- Net assets increased by 127% to N3.8 billion.
- Revenue grew by 102% to N4.37 billion, driven by higher rental income (N1.44 billion).
- Operating expenses remained stable at N535.8 million despite inflation.
- The REIT maintains a diverse portfolio (retail, residential, commercial) primarily in Lagos with a consistent occupancy rate of 88.5%.
- Early lease renewals contribute to this positive performance.
Challenges and Looking Forward
- The annual report acknowledges a 34% decrease in office development projects in 2023 due to economic difficulties (high financing costs and construction materials).
- Despite these challenges, UPDC REIT’s financial performance remains strong, demonstrating effective cost management and a well-maintained portfolio.
