UPDC REAL ESTATE INVESTMENT TRUST (UPDCREIT): STOCK ANALYSIS
COMPANY OVERVIEW:
- UPDCREIT is Nigeria's largest REIT by net asset value. Its diversified portfolio primarily focuses on real estate assets in Lagos. The company operated first as a department, then as a division of UAC of Nigeria Plc until 1997 when the business was incorporated as a public limited liability company and listed on the Nigerian Stock Exchange. UPDC now focuses its energies on the premium real estate market of carefully selected cities in Nigeria. It acquires, develops, sells, leases, and manages choice residential and commercial real estate. UPDC is the parent company of UPDC Hotels Limited and also jointly owns Manor Gardens Property Development Company Limited.
UPDC Real Estate Investment Trust is listed on the Nigerian Stock Exchange (NGX) since February 26th, 2008. UPDC Real Estate Investment Trust is traded on the NGX under the ticker symbol “UPDCREIT”. The International Securities Identification Number (ISIN) of NGX:UPDCREIT is NGUPDCREIT01. UPDC Real Estate Investment Trust is currently the 79th most valuable stock on the NGX with a market capitalization of NGN 12 billion, which is about 0.021% of the Nigerian Stock Exchange equity market.
- Notable assets owned by UPDCREIT include:
- Victoria Mall Plaza 1 and 2 on Bishop Aboyade Cole Street, Victoria Island, Lagos.
- Pearl Hostel within Pan Atlantic University, Ibeju Lekki, Lagos.
- UAC Complex in Abuja.
- Kingsway Building on Marina, Lagos.
FINANCIAL SUMMARY
KEY HIGHLIGHTS Q1 2024 vs Q1 2023
Revenue: N977.2 million, +108% YoY
Operating expenses: N180.1 million, +9% YoY
Profit before tax: N789.5 million, +114% YoY
Profit after tax: N789.5 million, +114% YoY
Total assets: N30.7 billion, +12% YoY
Investment property: N23.8 billion, +3% YoY
- Gross Margin (TTM): 85.6%.
- Operating Margin (TTM): 68.56%.
- Pretax Margin (TTM): 211.92%.
- Net Profit Margin (TTM): 211.92%
- Share Price: NGN 4.50
- Market Cap: Approximately NGN 12Billion.
- Earnings per Share (EPS)(TTM): NGN 0.57.
- Annual Dividend:12.44%.
- Dividend Ex-Date: May 17, 2024.
- Dividend Pay-Date: May 24, 2024.
DIVIDEND HISTORY:
May 17, 2024: NGN 0.22 per share (yield: 8.72%)
Sep 01, 2023: NGN 0.19 per share (yield: 14.52%)
May 15, 2023: NGN 0.16 per share (yield: 10.15%)
Oct 05, 2022: NGN 0.17 per share (yield: 11.61%)
ANALYST RECOMMENDATION: Analysts recommend a HOLD
SWOT ANALYSIS:
- STRENGTHS:
- UPDCREIT is Nigeria's largest REIT by net asset value.
- Diversified portfolio with residential, commercial, and purpose-built student properties.
- Consistent cash distribution (90% of net income) to unit holders.
- Rental Income Growth
- WEAKNESSES:
- Exposure to real estate market fluctuations.
- Dependency on rental income and property valuations.
- OPPORTUNITIES:
- Growing demand for real estate in Lagos and other urban centers.
- Potential for property value appreciation.
- Portfolio Expansion and Infrastructure Development
- THREATS:
- Economic downturns affecting rental demand.
- Regulatory changes impacting REITs.
- Competition from other investment options.
Always conduct your research before making investment decisions.
COMPANY OVERVIEW:
- UPDCREIT is Nigeria's largest REIT by net asset value. Its diversified portfolio primarily focuses on real estate assets in Lagos. The company operated first as a department, then as a division of UAC of Nigeria Plc until 1997 when the business was incorporated as a public limited liability company and listed on the Nigerian Stock Exchange. UPDC now focuses its energies on the premium real estate market of carefully selected cities in Nigeria. It acquires, develops, sells, leases, and manages choice residential and commercial real estate. UPDC is the parent company of UPDC Hotels Limited and also jointly owns Manor Gardens Property Development Company Limited.
UPDC Real Estate Investment Trust is listed on the Nigerian Stock Exchange (NGX) since February 26th, 2008. UPDC Real Estate Investment Trust is traded on the NGX under the ticker symbol “UPDCREIT”. The International Securities Identification Number (ISIN) of NGX:UPDCREIT is NGUPDCREIT01. UPDC Real Estate Investment Trust is currently the 79th most valuable stock on the NGX with a market capitalization of NGN 12 billion, which is about 0.021% of the Nigerian Stock Exchange equity market.
- Notable assets owned by UPDCREIT include:
- Victoria Mall Plaza 1 and 2 on Bishop Aboyade Cole Street, Victoria Island, Lagos.
- Pearl Hostel within Pan Atlantic University, Ibeju Lekki, Lagos.
- UAC Complex in Abuja.
- Kingsway Building on Marina, Lagos.
FINANCIAL SUMMARY
KEY HIGHLIGHTS Q1 2024 vs Q1 2023
Revenue: N977.2 million, +108% YoY
Operating expenses: N180.1 million, +9% YoY
Profit before tax: N789.5 million, +114% YoY
Profit after tax: N789.5 million, +114% YoY
Total assets: N30.7 billion, +12% YoY
Investment property: N23.8 billion, +3% YoY
- Gross Margin (TTM): 85.6%.
- Operating Margin (TTM): 68.56%.
- Pretax Margin (TTM): 211.92%.
- Net Profit Margin (TTM): 211.92%
- Share Price: NGN 4.50
- Market Cap: Approximately NGN 12Billion.
- Earnings per Share (EPS)(TTM): NGN 0.57.
- Annual Dividend:12.44%.
- Dividend Ex-Date: May 17, 2024.
- Dividend Pay-Date: May 24, 2024.
DIVIDEND HISTORY:
May 17, 2024: NGN 0.22 per share (yield: 8.72%)
Sep 01, 2023: NGN 0.19 per share (yield: 14.52%)
May 15, 2023: NGN 0.16 per share (yield: 10.15%)
Oct 05, 2022: NGN 0.17 per share (yield: 11.61%)
ANALYST RECOMMENDATION: Analysts recommend a HOLD
SWOT ANALYSIS:
- STRENGTHS:
- UPDCREIT is Nigeria's largest REIT by net asset value.
- Diversified portfolio with residential, commercial, and purpose-built student properties.
- Consistent cash distribution (90% of net income) to unit holders.
- Rental Income Growth
- WEAKNESSES:
- Exposure to real estate market fluctuations.
- Dependency on rental income and property valuations.
- OPPORTUNITIES:
- Growing demand for real estate in Lagos and other urban centers.
- Potential for property value appreciation.
- Portfolio Expansion and Infrastructure Development
- THREATS:
- Economic downturns affecting rental demand.
- Regulatory changes impacting REITs.
- Competition from other investment options.
Always conduct your research before making investment decisions.