SFS Real Estate Investment Trust Fund (SFS REIT Fund), a close-ended real estate investment trust scheme has recorded a 1558 percent growth in net cash generated from operating activities.
Data sourced from the company’s financials showed SFS REIT Fund’s net cash generated from operating activities increased to N534.68 million in 9M’2023 from N32.24 million in a similar period of 2022.
However, cash and cash equivalents at the end of the period dipped to N5.5 million in 9M’2023 from N55.96 billion in the same period of 2022 which can be attributable to negative cash flow in investing and financing activities.
Net cash flow used in investing activities stood at a negative cash flow of N908.56 million in 9M’2023 from a negative cash flow of N237.36 million in the same period of 2022.
Net cash flow used in investing activities stood at a negative of N180.04 million in 9M’2023 from a negative of N96.95 million in the same period of 2022.
Total income increased to N250.37 million from N180.65 million which was obtained by rental income and fixed interest income.
Rental income increased to N140.09 million from N132.61 million while fixed interest income grew to N110.29 million from N48.04 million.
The SFS REIT Fund’s target investors are pension fund administrators, investment managers, endowment funds, insurance companies, international investors, and savvy individual investors interested in the stability and returns associated with Real estate investing.
The fund is dedicated to utilising a pragmatic research-driven approach to acquiring, holding, renting, renovating, and trading income-generating real estates, such as residential homes, shopping malls, shops, hotels, offices, and warehouses while taking advantage of the fund’s tax-exempt status.
SFS Real Estate Investment Trust Fund performance
The SFS REIT Fund is the first Real Estate investment trust fund in Nigeria listed on the Nigeria Stock Exchange (NSE).
The fund started through an Initial Public Offer of 20 million units of N100.00 each on 23 July 2007 and was officially listed on the Nigerian Stock Exchange on February 28, 2008 at a price of N100.00.
The fund closed the year at a price of N111.01, recording 11 percent capital appreciation on the floor of the Nigeria Stock Exchange, despite a sharp decline in the NSE index during the same period.
Property performance metrics
Victory Park Estate, located in Igbokushu, Lekki-Lagos with 12 units has a current yield of 8.54 percent. The tenants are individuals with 13 years property age.
Milverton Court Estate, located in Osapa, Lekki-Lagos with 19 units has a current yield of 7.82 percent. The tenants are individuals with 9 years of property age.
Bourdillion Court Estate, located in Chevron dr, Lekki-Lagos with 8 units has a current yield of 7.33 percent. The tenants are individuals with 7 years of property age.
Sapphire Gardens Estate, located in Awoyaya, Lekki-Lagos with 6 units has a current yield of 7.25 percent. The tenants are corporate entities with 10 years of property age.
Harold Shodipo, located in G.R.A Ikeja, Lagos with 6 units has a current yield of 4.32 percent. The tenants are corporate entities with 13 years of property age.