Nigeria’s listed real estate investment fund, UPDC Real Estate Investment Trust, delivered a strong first-quarter performance, with profit growth rising by 36 percent, driven primarily by a sharp increase in rental income and a steady expansion of its asset base.
- +UPDC REIT grows Q1 profit by 36% as rental income rises
According to its unaudited financial statement for the period ended March 31, 2026, the trust reported revenue of N1.03 billion, representing a 30 percent increase from N788.9 million in the corresponding period of 2025.
According to its unaudited financial statement for the period ended March 31, 2026, the trust reported revenue of N1.03 billion, representing a 30 percent increase from N788.9 million in the corresponding period of 2025. This performance was largely underpinned by a significant rebound in rental income, which rose to N759.9 million, up 83 percent year-on-year.
The rental performance signals improved occupancy levels and possibly better pricing across its property portfolio, reflecting a gradual recovery in Nigeria’s commercial real estate segment.
Interest income, however, showed mixed trends. While income from bank deposits declined modestly to N263.9 million from N306.5 million, income from financial assets at fair value dropped sharply to N2.95 million from N66.1 million, indicating reduced exposure to treasury instruments or lower yields during the period.
Despite rising operating expenses, which increased by 25 percent to N245.6 million, the trust reported a net income (increase in net assets) of N752.5 million, representing a 36 percent increase from N551.8 million in Q1 2025. Earnings per unit also improved to N0.28 from N0.21, reinforcing stronger returns to investors.
The moderation in impairment charges on receivables, down to N28.6 million from N41 million, also contributed to bottom-line growth, suggesting improved tenant collections or credit quality.
UPDC REIT’s total assets rose to N37.74 billion, a 10 percent increase from N34.26 billion recorded a year earlier.
This growth was largely driven by its core investment property portfolio, which expanded to N29.59 billion, accounting for nearly 78 percent of total assets. The steady increase underscores continued capital appreciation and strategic positioning in income-generating real estate.
Liquidity remained strong, with cash and cash equivalents rising to N6.74 billion, providing an ample buffer for operations and potential investments.
Notably, other assets surged to N392.6 million from N24.1 million, reflecting a sharp increase in rent receivables, although a higher expected credit loss provision partly offset this.
On the liabilities side, total obligations increased moderately to N1.51 billion, driven mainly by higher rent received in advance, which increased to N1.33 billion. This suggests stronger tenant prepayments and improved leasing activity.
Net assets attributable to unit holders rose to N36.23 billion, up from N33.06 billion, supported by retained earnings growth to N9.55 billion.
On the equity side, unitholders’ contributions remained stable at N26.6 billion, while retained profit rose 49.80% year-on-year to N9.5 billion.
UPDC Real Estate Investment Trust began the year with a share price of N6.90 and has since gained 10.1 percent on that price valuation, ranking it 79th on the NGX in terms of year-to-date performance.
