Union Homes Real Estate Investment Trust announced a net asset value (NAV) of N9.79 billion for October 2019, the notice released to the Nigerian Stock Exchange (NSE) indicated. This represents a decline of 2.4 percent when compared with N10.04 billion NAV it announced for September 2019. The implication is that its NAV has shed N243.73 million in 30 days.
In both September and October 2019, Union Homes REIT had nine properties and delinquency rates at 0.60 percent in both periods, while the number of units of houses, yields, tenancy structures and occupancy rates remained the same.
Interestingly, the construction sub sector grew by 2.37 percent at the end of the third quarter of 2019 as against 0.67 percent and 3.18 percent at the end of the second and first quarters of 2019 respectively, the recent GDP figures announced by the nation’s data agency, the National Bureau of Statistics (NBS) indicated.
The nine properties under the management of Union Homes REIT are Macdonald Court in Ikoyi Lagos, which has eight blocks of flats with its current yield is at 4.11 percent. It has individuals as its tenants, 100 percent occupancy rates and has been in existence for eight years as at October 2019. The Savannah Court has fourteen blocks of flats and has been in existence for eight years, its current yield is at 4.18 percent with 93 percent occupancy rate.
“Something unique must have happened for the decline in its NAV within 30 days since other parameters remained the same. However, the general business environment is not favourable to players in the real estate sector”, a senior analyst who pleaded anonymity, said.
The seven years old Contemporary Apartment in Ikoyi is occupied by individuals, and has four blocks of flats, and having its occupancy rate at 100 percent. Its current yield is 4.49 percent.
Olive Apartment in Jabi, Abuja has no yield currently because it is not yet occupied by any tenants, just like the way it was in the previous month. It has 12 blocks of flats and is seven years old. Continental Apartment in Victoria Island in Lagos, with 22 blocks of flats, has the highest number of housing units among its properties. Its current yield is 4 percent; 100 percent occupancy rate and it is seven years old.
Victor Court and Charter Court, both in Ikoyi Lagos, have three and eleven blocks of flats and both are 100 percent occupied. Their current yields are 4.21 percent and 3.12 percent respectively.
Amina Court in Abuja and Locke Court at Lekki Lagos, with five and fifteen blocks of flats, complete the list of the properties under the management of Union Homes REIT. The former has 5.22 as its current yield while the latter has 6.97 percent as its current yield. Both are three years old only that Amina Court has 80 percent occupancy rate while Locke is 100 percent occupied.
TELIAT SULE
