Investors of UPDC Real Estate Investment Trust have unanimously endorsed SFS Capital Nigeria Limited as fund manager, with early performance indicators pointing to higher distributions and improved asset optimisation.
At an Extraordinary General Meeting (EGM) held on May 6, unitholders approved amendments to key trust documents, formalising SFS Capital’s appointment and related structural changes, including the transition from Stanbic IBTC Asset Management Limited and the renaming of FBNQuest Trustees Limited to First Trustees Limited.
Speaking at the meeting, Patrick Ilodianya, managing director/CEO of SFS Capital, said the new manager has already recorded N1.027 billion in revenue in the first quarter of 2026, one of the strongest in the trust’s history. He added that rental income rose by 82.8 percent year-on-year, while net distributable income increased by 36.4 per cent, signalling stronger returns for investors.
Ilodianya attributed the performance to improved portfolio efficiency and contractual rent structures across the REIT’s assets, noting that the fund also secured a GCR credit rating upgrade to A(NG) with a positive outlook. Net asset value per unit closed the quarter at N13.58.
He described the REIT’s portfolio, spanning prime office, retail, luxury residential, student accommodation and mixed-use assets in Lagos, as “irreplaceable,” citing properties in Victoria Island, Ikoyi and Lagos Island as key drivers of long-term value.
“Top-grade tenants. Long-term leases. Built-in rent growth. That is what income security looks like for unitholders,” he added.
According to him, ongoing capital expenditure across the assets is expected to further unlock rental income and support consistent distribution growth.
“UPDC REIT does something remarkable—it takes real estate that would otherwise be accessible only to the ultra-wealthy and places it within reach of every Nigerian investor,” he said.
Also speaking, Ezekiel Folahan, head of Trust Finance at United Capital Trustees Limited, emphasised the trustees’ role in safeguarding investor interests and regulatory compliance. He said the priority remains sustained growth of the fund and stable returns to unitholders, while ensuring strict adherence to regulatory standards.
“We continue to monitor the fund manager to ensure full compliance because regulatory breaches can undermine investor confidence, regardless of performance,” he said.
Folahan added that the REIT has maintained a track record of profitability and investor returns, expressing confidence that the new management structure would enhance growth over the next few years.
The EGM resolutions also reflected updates to the fund manager and trustee addresses, aligning operational control with the new management framework.