UPDC Real Estate Investment Trust (UPDC REIT) recorded an after-tax profit of N1.09 billion for the half year ended June 30, 2025, marginally below the N1.11 billion reported in the corresponding period of 2024.
The steady earnings came despite a decline in overall revenue to N1.54 billion from N1.59 billion the previous year, reflecting lower non-recurring gains recorded in 2024.
A closer look at the result shows that rental income, the trust’s main revenue driver, rose by 22 percent to N837.1 million, up from N683.5 million in the same period last year, supported by improved property occupancy and higher lease renewals.
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Meanwhile, interest income from bank deposits surged 25 percent to N633.9 million, reflecting higher yields on money market placements and short-term instruments. Interest income from assets measured at fair value also jumped over tenfold, reaching N63.1 million compared with N5.9 million in the same period of 2024, driven by returns from treasury bills and bonds.
On the cost side, operating expenses rose modestly to N389.16 million from N376.33 million, reflecting higher maintenance, insurance, and professional fees.
The trust also recorded an impairment charge on receivables of N48.85 million, a 52 percent decline from the N102.46 million reported in H1’2024, showing some moderation in credit losses.
Notably, in H1 2025, the REIT did not record gains from the disposal of investment assets (such as real estate sales), unlike in H1 2024, when it had recognised N410 million from the sale of the UAC complex.
The trust maintained a strong balance sheet, with total assets rising to N33.77 billion from N33.43 billion at the end of December 2024. Investment properties accounted for N27.48 billion of this total, following improvements valued at N241.8 million during the period.
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Cash and cash equivalents also inched up to N5.82 billion, reflecting robust liquidity and efficient fund management.
UPDC REIT’s net asset value stood at N32.8 billion, compared to N32.53 billion as of December 2024, while the earnings per unit came in at N0.41, slightly down from N0.42 in the same period last year.
The Trust distributed N800.5 million to unitholders during the first half, demonstrating its continued commitment to steady investor returns amid a challenging real estate environment.
As of October 7, 2025, the company reported a share price of N7.3, with a market capitalisation of N2.66 billion.