STOCK SPOTLIGHT: UNION HOMES REAL ESTATE INVESTMENT TRUST (UHREIT)

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Olori Uwem

Well-Known Member
Mar 18, 2024
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STOCK SPOTLIGHT: UNION HOMES REAL ESTATE INVESTMENT TRUST (UHREIT)

Price: ₦45.70
1-Year Change: +26.09%
52-Week Range: ₦36.60 – ₦56.90
Market Cap: ₦11.5 Billion
1-Year Liquidity: ₦383.1 Million
Dividend Yield: 10.91%
Listed: April 24, 2006
Head Office: 32, Awolowo Road, Ikoyi, Lagos

COMPANY PROFILE
Union Homes Real Estate Investment Trust (UHREIT), formerly Union Homes REIT, is an actively managed, close-ended unit trust scheme focused on long-term capital appreciation through real estate investments.

Up to 90% of its portfolio is dedicated to commercial and residential property investments and mortgage assets, while up to 10% is invested in high-quality money market instruments to maintain liquidity.

Managed by Union Homes Savings & Loans Plc (a subsidiary of Union Bank of Nigeria Plc), UHREIT is one of the few listed REITs on the Nigerian Exchange — offering investors an alternative, stable income stream through rental yields and capital growth.

Financial Highlights – Q1 2025
Total Revenue: ₦260.44 Million
Operating Income: ₦201.73 Million
EPS: ₦1.07
Diluted Shares Outstanding: 188.13 Million
Total Assets: ₦12.84 Billion
Total Liabilities: ₦1.95 Billion

Insight: Strong income generation, modest liabilities, and consistent earnings per share (EPS) reflect a well-structured and relatively low-risk investment vehicle.

TECHNICAL ANALYSIS SNAPSHOT
Recent technical indicators from ng.investing.com show a mild bearish sentiment:

RSI: Neutral
MACD (12,26): Sell
Stochastic RSI: Sell
Moving Averages: Mostly bearish
Interpretation: While the broader market may be applying downward pressure, UHREIT remains fundamentally solid — making it a potential long-term hold for yield-focused investors.

SWOT ANALYSIS
STRENGTHS
Tangible Asset Backing: Real estate properties provide long-term value and stability.
Diversification: Balanced exposure to residential, commercial, and mortgage assets.
Liquidity Management: Money market allocation cushions market shocks.

WEAKNESSES
Market Sensitivity: Vulnerable to real estate and economic downturns.
Close-ended Structure: Limited flexibility for expansion or new unit issues.

OPPORTUNITIES
Urban Expansion: Nigeria’s urban growth fuels demand for housing and offices.
Strategic Deals: Possible alliances with property developers and fintech lenders.

THREATS
⚖️ Regulatory Risks: Changes in REIT tax laws or property policies could affect returns.
Macroeconomic Headwinds: High inflation and naira devaluation can impact rental income and asset value.
Final Thoughts: Is UHREIT a Buy, Hold, or Sell?

If you’re an investor seeking:
Consistent dividend income
Portfolio diversification away from equities

Real estate exposure without direct property management hassles
Then UHREIT might be a solid "hold" or "accumulate" position in your portfolio.

While technical indicators currently reflect some bearishness, its underlying fundamentals, dividend payout, and asset stability continue to make it a worthy defensive play — especially in uncertain economic times.

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