UPDC Real Estate Investment Trust (REIT) Plc unitholders have officially confirmed SFS Capital as the new fund manager, a strategic move designed to enhance the trust's portfolio performance and unlock new capital opportunities. SFS Capital, a Securities and Exchange Commission (SEC)-licensed asset management firm, will now oversee UPDC's fund operations as the company seeks to revive investor confidence and scale growth across its property assets.
Appointment Ratified at General Meeting
The appointment was ratified during a general meeting held in Lagos on Wednesday, where unitholders were given the opportunity to formally approve the decision. Speaking at the event, Mr. Patrick Ilodianya, Managing Director and Chief Executive Officer of SFS Capital Nigeria Limited, stated that the firm's priority is to instill discipline, integrity, and transparency in the deployment of UPDC's capital while upholding unitholder interests.
Impressive Financial Performance
Ilodianya revealed that since taking over the fund, rental income revenue grew by 82.8% year on year, reflecting underlying contractual rent dynamics and improved performance across the portfolio. He noted that SFS Capital has built a reputation for managing fixed income, equity, and real estate-linked funds with a focus on risk-adjusted returns. The firm's approach combines data-driven investment analysis with active portfolio management, a model UPDC is counting on to navigate the current economic climate.
“This appointment is the outcome of a deliberate and rigorous process led by the Trustees. Following the resignation of Stanbic IBTC Asset Management, six fund managers applied and were assessed against SEC-mandated criteria, including track record and forward strategy for UPDC REIT, but SFS Capital emerged as the preferred candidate,” Ilodianya explained.
Record-Breaking Quarterly Results
Ilodianya highlighted the fund's extraordinary performance, emphasizing an unprecedented dividend payout that has surged compared to previous figures. “Such growth remains one of the strongest first-quarter results since inception,” he added. Detailing the financial triumph, he said: “We effectively took over this fund on the 1st of January 2026. In the first quarter alone, total revenue reached N1.027 billion, one of the highest quarterly revenues in UPDC Trust's history. Rental income grew by 82.8% year on year, reflecting the underlying contractual rent dynamics and improved performance across the portfolio.
“Net distributable income rose 36.4%. In March 2026, our GCR credit rating was upgraded to A(NG) with a positive outlook, an independent endorsement of the Trust's underlying strength. NAV per unit closed the quarter at N13.58, reflecting the underlying asset value independently determined by the trust's valuers.”
Capital Expenditure Programme
Ilodianya added that the capital active expenditure programme across all six properties, designed to unlock the full rental potential of each asset, is projected to grow distributions to unitholders in a consistent, continuous, and compounding manner year after year. “This will sustain its peak value with no foreseeable decline,” he assured.
SFS Capital is expected to oversee the management of UPDC's investment portfolio, including property acquisitions, disposals, and development projects. The goal is to improve asset yields, enhance liquidity, and attract institutional and retail investors looking for stable, long-term exposure to Nigeria's real estate sector.
Need for Specialists
The Managing Director underscored the need for every investment platform to have real estate fund management specialists. “Real estate in Nigeria has fundamentals that remain strong, but you need active management and rigorous analysis to convert that into consistent returns. Anyone who wants to bring real estate into the capital markets—whether as a REIT, a fund, or a pension-eligible investment vehicle—needs a specialist,” he said.
He commended the SEC for its guidance, the trustees for their confidence, the outgoing fund managers Stanbic IBTC Asset Management for the professional handover, and unitholders for their continued confidence.
Broader Industry Shift
Earlier, Mr. Ezekiel Folahan, Head of Trust Finance at United Capital Trustees, said the development reflects a broader shift towards professional and performance-oriented asset management in the capital markets. “The move for SFS Capital PLC is a positive step for the industry and will promote new innovation in how real estate funds are structured and managed, while also fostering sustainable growth for investors and enhancing transparency, improving regulatory standards, and encouraging more disciplined capital allocation within UPDC's portfolio,” Folahan stated.
United Capital Trustees oversees trust arrangements for several listed and private funds and plays a key role in safeguarding investor interests. “We are looking at the growth of the fund. Over the years, the fund has been recording profits and making good returns to the unitholders. We are ensuring that the regulatory body did not sanction the REITs and fund managers; the reason for our effective monitoring,” he added.
