UPDC Real Estate Investment Trust (REIT) has released its unaudited financial results for Q1 2024.
The REIT disclosed a notable net income of N789.5 million, indicating a robust 114% year-on-year surge compared to the N369 million reported in Q1 2023.
In terms of revenue, the trust achieved N977.2 million during the quarter reflective of a 108% year-on-year growth from the N468.8 million posted in the same quarter of the previous year.
However, despite the overall revenue growth, UPDC experienced a slight dip in rental income for the quarter, with figures sliding marginally from N354.7 million in Q1 2023 to N349.7 million.
Rental Income is one of its major revenue drivers over the years and a steady source of cash flow for the business. In Q1 2023, rental income accounted for 76% of its revenue, while in Q1 2022, it accounted for 73% of the trust’s revenue.
Additionally, UPDC realized a turnover of N410 million from the sales of some of its investment properties during the quarter, further contributing to its financial performance.
Since being acquired by Custodian Investment, Q1 2024 represents the best-performing quarter for UPDC REIT, as it recorded N410 million from the sales of its properties.
In 2020, Custodian Investment acquired a 51% ownership stake in UPDC following UACN’s announcement to spin off the company in 2019. Since the acquisition, UPDC REIT reported a net loss of N4.48 billion in 2021, followed by a net income of N1.68 billion in 2022, and a net income of N3.8 billion in the fiscal year 2023.
The REIT boasts a flurry of rental properties across Lagos and Abuja, including a hostel in Pan-Atlantic University, Epe, the UAC House in Abuja, Kingsway Building in Marina, and Victoria Mall Plaza in Victoria Island, Lagos.
During the quarter, the property maintenance expenses of the REIT reached N57.9 million, reflecting a 34% year-over-year growth from the N43.3 million posted in Q1 2023.