UPDC Real Estate Investment Trust (UPDC REIT) has declared a final dividend of N0.22 per unit of share for the period ending December 31, 2023. This translates to a final dividend payout of N579.34 million for the trust’s fully issued 2,668,270,000 units.
Combined with its interim dividend payout of N526.22 million (N0.19 per unit) for the first half (H1) of 2023, the REIT’s total dividend payout for FY 2023 amounts to N1.105 billion. This signifies a 19% increase in the dividend disbursed by the trust, compared to the total dividend distribution of N930.9 million in 2022.
The fund’s dividend payout for FY2023 represents a 29.1% dividend payout ratio, marking a 24.4 percentage-point decline from the 55.5% dividend payout ratio for FY 2022.
It is noted that the dividend will be paid to unitholders whose names are in the register of members as at close of business on May 16, 2024. The register of shareholders will be closed from May 17 to May 23, 2024. And on May 24, the dividends will be paid to unitholders who have completed the e-dividend registration.
UPDC REIT uses First Registrars, and unitholders who want to complete the e-dividend registration are to download the “e-dividend mandate activation form” from the website of First Registrars Nigeria. They are to complete and submit this form to the registrar or their banks.
Unitholders with unclaimed dividend warrants or share certificates are urged to either sign up for e-dividend registration or get in touch with the registrar for assistance.
UPDC REIT is a fund managed by Stanbic IBTC Asset Management Limited. In 2023, the fund’s net assets (net income) reached N3.8 billion, representing a 127% growth from 2022’s N1.7 billion.
The revenue generated by the REIT hit N4.37 billion in 2023, marking a 102% increase from the N2.16 billion revenue generated in 2022. This was driven by boosted rental earnings, which hit N1.44 billion in 2023, from N1.26 billion in 2022.
Despite rising inflation in the country, the fund’s operating expenses grew marginally to N535.8 million from N551.3 million in 2022, reflecting careful cost management efforts.
The REIT has a diverse portfolio which features retail, residential, and commercial assets mainly in Lagos. Its occupancy rate remained steady at 88.5%, with most lease renewals completed early.
In its annual report, the Fund Manager noted that despite a 34% decrease in office development projects in 2023 compared to 2022 due to challenging economic conditions, marked by high financing costs and expensive construction materials.