UH Real Estate Investment Trust (UH REIT) has posted a 44.5% growth in income, resulting in a significant increase in dividend payout to its stakeholders.
This was disclosed during the 2024 UH REIT Annual General Meeting recently held in Lagos.
Speaking at the event, Patrick Ilodianya, managing director and CEO of SFS Capital Nigeria Limited, described the growth as a testament to the company’s sound management strategies and its dedication to delivering consistent value to investors.
“The year 2024 has been exceptionally strong for the UH REIT, marking a significant growth and commendable financial performance for us,” Ilodianya said. “Our total income rose by 44.5%, reaching N1.2 billion, demonstrating the robustness of our property management strategy and market positioning.”
According to him, profit before tax also jumped by approximately 56.2%, hitting N1 billion, while earnings per share grew to N5.56 from N3.49 recorded in 2023.
In response to this strong performance, the company proposed a dividend payout of N5.05 per unit for 2024, up from N3.15 in the previous year. Ilodianya attributed this to strategic initiatives and prudent financial management.
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“Our portfolio remained highly resilient, with nine out of ten properties maintaining full occupancy throughout the year,” he added. “Looking back over the last five years, UH REIT has consistently delivered growth, stability, and increased asset value, with our Net Asset Value rising to N10.69 billion.”
As part of its forward-looking strategy, the firm also announced the upcoming launch of an innovative investment product, the SFS Convertible REIT, which will allow investors to convert their units into physical real estate assets.
“This new REIT structure underscores our commitment to innovation, diversification, and giving investors more tangible value,” Ilodianya said.
The annual report also highlighted broader macroeconomic indicators. In Q4 2024, the non-oil sector accounted for 95.4% of Nigeria’s GDP, with finance, ICT, agriculture, trade, transport, and manufacturing as key growth drivers. The oil sector, meanwhile, contributed 4.6% to GDP but declined year-on-year and quarter-on-quarter, with daily crude production averaging 1.53 million barrels, down from 1.56 mbpd in Q4 2023.
Inflation remained a concern, closing the year at 34.8% in December 2024, driven largely by food costs, housing, utilities, and clothing. Exchange rate volatility and weak foreign exchange policies also played a major role in rising prices.
On fund performance, UH REIT’s gross revenue for 2024 stood at N1.28 billion, up from N884.28 million in 2023. This increase was fueled by improved rental income, property disposals, and higher interest earnings. Net income surged 59.3% year-on-year, hitting N1.05 billion from N656.13 million.
Ilodianya reaffirmed the company’s confidence in the sector’s potential: “We are optimistic about the future of Nigeria’s real estate market and believe we are well-positioned to seize upcoming opportunities for expansion.”
He also appreciated the unwavering support of stakeholders and assured them that the firm would continue to deliver “sustained growth and excellent performance” in the coming year.
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