UPDC Real Estate Investment Trust (UPDC REIT), a close-ended property fund, has reported its lowest nine-month profit in five years in the period ended September 2021.
The fund with underlying assets comprising a diversified portfolio of commercial and residential real estate assets in major cities across Nigeria reported 22.09 percent decline in its profit for the review period, thanks to the decline in its income from property investment.
Analysis of the earnings report by UPDC REIT showed that its nine-month profit dropped by N254 million to N896.31 as of September 2021 from N1.15 billion reported in the comparable period of 2020.
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Compared to the N1.21 billion reported in the nine-month of 2016, the 2021 profit by the real estate fund was a reduction of 25.95 percent. The difference was 35.54 percent when compared to the N1.39 billion reported in 20218, the highest profit the fund has reported in the past five years it has available data.
UPDC REIT’s performance in the review period was largely driven by a 21.76 percent drop in its rental income (its investment property) to N 931.13million in 2021 from N1.19 billion in the same period of 2020.
As a result, the fund’s revenue for the period under review was down 20.3 percent to N1.24 billion from N1.56 billion in the corresponding period of last year.
Breakdown of the fund’s financial results in the review period showed that its Net Assets grew by 0.3 percent to N31.8billion in 2021 from N31.7billion in the same period of 2020.
