UH REIT Hits 44.5% Growth, Boosts Investors’ Dividend -

LAGOS, Nigeria – Union Homes Real Estate Investment Trust (UH REIT) has achieved a remarkable 44.5% growth, resulting in a significant increase in dividend payout for its stakeholders.

This landmark growth according to the firm, serves as a testament to the company’s strong performance and commitment to delivering value to its investors.

The Managing Director and Chief Executive Officer, SFS Capital Nigeria Limited, Mr Patrick Ilodianya made this statement at the 2024 UH Real Estate Investment Trust (UH REIT) Annual General Meeting held at the Art Hotel, Victoria Island on Friday in Lagos.

The firm also announced the forthcoming launch of an innovative REIT structure, the SFS Convertible REIT, which would offer investors the option to convert their holdings directly into physical real estate properties.

He explained that the initiative underscored the firm’s commitment to innovation, diversification, and adding tangible value to investors.

Mr Ilodianya while delivering his address at the event said the company attained a significant income growth which rose by 44.5%, reaching 1.2billion naira.

In his words, “The year 2024 has been exceptionally strong for the UH REIT, marking a significant growth and commendable financial performance for us. Our total income rose by 44.5% reaching N1.2bn, demonstrating the robustness of our property management strategy and market positioning.

“Furthermore, our profit before tax experienced substantial growth of approximately 56.2% totally N1billion as compared to previous years. Earnings per share increases impressively to N5.56, up from N3.49 in 2023.”

Mr Ilodianya emphasized that the growth became possible following the firm’s effectiveness in strategic initiative and prudence financial management.

Following the high performance rate, the firm proposed a dividend increase payout of N5.05 per unit for the year 2024, significantly higher than the N3.15 per unit distributed as at last year.

According to the annual report, the non-oil sector contributed 95.4% to Nigeria’s GDP in Q4 2024, marginally higher than 95.30% recorded in Q4 with growth mainly driven by financial services, information and communication, Agriculture, trade, transportation and manufacturing.

Significantly, the oil sector contributed 4.60% to the GDP in Q4 2024 and expanded by 1.48% year-on-year in Q4 2024; down 10.64% compared to Q4 2023. However, growth also declined by 3.70% compared to Q3 2024. Over the quarter, Nigeria’s oil production average 1.53 million barrel per day (mbpd) compared to 1.56mbpd in Q4 2023.

Inflation remained in the ascendancy in 2024 with the Consumer Price Index logged growth of 34.8% in December 2024, compared to a 12-month low of 32.15%, making food inflation a key driver of inflation in 2024, accompanied by Housing, Water, Electricity Gas and other fuel as well as clothing and footwear.

The pricey imports became pertinent due to unfavourably exchange rates and weak FX policies which also remained a major inflation driver in 2024.

On fund performance, the UH Real Estate Investment Trust Fund generated gross revenue of N1.28 billion in 2024 as compared to N884.28 million in 2023, attributable to higher rental income, property disposal and interest income.

Also, the Network income crossed the N1billion mark by year end to close at N1.05billion, up 59.29% from the preceding year at N656.13million.

Following the performance, the UH REIT declared a N5.05 dividend for the year ended 2024 as compared to 2023 with N3.15. The Net Asset Value of the fund grew by 4.42% in 2024, to close the year N10.69billion.

The report forecasted that the Nigeria Real estate market is estimated to grow $2.61trillion by 2025, with residential real estate expected to account for $2.25trillion, on the back of urbanization and rising demand for housing; with housing demand projected to grow by 8% annually to 30million units by the end of 2025, catalyzed by a 2.5% annual population growth rate and urban migration among other factors; indicating a promising future for SFS Capital Nigeria’s investments.

Speaking further, Mr Ilodianya said, “in line with the performance, we are pleased to propose an increased dividend payout of N5.05 per unit for the year 2024. This enhanced dividend reflects our commitment to providing sustainable returns and maximizing investors’ value.

“Our portfolio management remained highly effective, with nine of ten properties achieving 100% occupancy throughout the year, highlighting the continued demand for premium real estate managed by UH REIT hence, looking back over the past five years, the firm has consistently delivered growth, stability and value appreciation with our Net Asset Value steadily increasing to 10.69billion,” he added.

He expressed optimism about the future of Nigeria’s real estate market, noting that the firm was well-positioned to Capitalise on upcoming opportunities for further growth.

He applauded investors unwavering support and continued confidence, adding that the firm would continue to deliver sustained growth and excellence performance in the coming year.

Also, the Executive Director, Dimeji Sonowo hailed stakeholders contribution to growth and wishes them the best of the year.

Impact on Stakeholders

The 44.5% growth boost is expected to have a positive impact on stakeholders, including:

– Increased Dividend Payments: Stakeholders can anticipate higher dividend payments, reflecting the company’s improved financial performance.

– Enhanced Investor Confidence: The growth boost may lead to increased investor confidence, potentially attracting more investments and driving further growth.