UAC Property Development Company (UPDC), Nigeria’s foremost real estate investment firm, has posted a loss in the first half (H1) of 2022 totalling N72.3 million.
Findings by BusinessDay showed that compared to the loss of N603.3 million reported in the first half of 2021, the reported loss was lower.
The company reported a loss despite revenue which grew by 259 percent year on year (y/y) to N1.1 billion in the first half of 2022 from N316.1 million in the first half of 2021.
A breakdown of the revenue by category showed that the company generated N355 million from the sale of property stock, N197 million from project/asset management fees, N420 million from Deep Horizon Investment Limited’s sale of property stock, and N164 million from the UPDC facility management limited surcharge income.
Cost of sales, however, claimed 61 percent of the total revenue during the period, thereby pressuring the profitability of the real estate firm.
UPDC’s cost of sales increased by 169 percent to N703.2 million in the first half of 2022 from N260.5 million in the corresponding period of 2021.
Its administrative expenses declined by 26.9 percent in the first half of 2022 to N309.7 million from N423.8 million reported in the first half of 2021.
The real estate company also recorded a decline of 44.4 percent in net finance costs to N235.3 million in the first half of 2022 from N422.8 million in the first half of 2021.
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Its total shareholder’s equity declined by 13.76 percent to N7.8 billion in the first quarter of 2022 from N9.05 billion in the corresponding period of 2021.
In the same vein, total assets reported by the company declined by 14.47 percent to N18.85 billion in the first half of 2022 from N22.04 billion in the first half of 2021.
Total borrowings reported by the company amounted to N5.5 billion, a 5.7 percent decline from N5.8 billion recorded in the first half of 2021.
UPDC’s cash and cash equivalent during the period under review amounted to N2.2 billion, a 42.1 percent decline from N3.8 billion reported in the first half of 2021.
Cash from operating activities grew by 4824 percent to N477.7 million in the first half of 2022 from N9.7 million in the first half of 2021.
The real estate company also reported negative cash from financing activities which amounted to N172.7 million in the first half of 2022 from N-17.6 million in the first half of 2021.
Cash used in investing activities by the company declined by 97.8 percent to N19.4 million in the first half of 2022 from N881.2 million in the first half of 2021.
UPDC Plc is a property investment company with a market capitalisation of N18.7 billion. They are into the acquisition, development, sales, and management of high-quality, serviced, commercial and residential properties in the luxury, premium, and classic segments of the real estate market.
