UPDC Real Estate Investment Trust (UH REIT) has reported a profit after tax of N518.5 million for the first half of 2026, according to its unaudited financial statements released on Monday. This marks a significant turnaround from the N45.2 million loss recorded in the same period last year.
Revenue and Income Growth
The trust's gross rental income rose by 12% to N1.2 billion, up from N1.07 billion in H1 2025. Other income, including property revaluation gains, contributed N210 million, compared to just N15 million in the prior year. Total income for the period stood at N1.41 billion, a 30% increase year-on-year.
According to the trust's management, the improved performance was driven by higher occupancy rates across its portfolio and the successful renegotiation of lease terms. "We are pleased with the strong operational performance, which reflects our focus on optimizing asset utilization," said the CEO in a statement.
Expense Management
Operating expenses increased marginally to N450 million from N420 million in H1 2025, largely due to higher maintenance costs. However, finance costs dropped sharply by 40% to N180 million, following the repayment of a N500 million loan in Q4 2025. This reduction significantly boosted the bottom line.
The trust also reported a net asset value per unit of N12.50, up from N11.80 at the end of 2025. Total assets grew to N18.9 billion, while liabilities decreased to N4.2 billion, improving the debt-to-equity ratio to 0.22 from 0.31.
Market Outlook
Industry analysts attribute the trust's recovery to the broader rebound in Nigeria's real estate sector, particularly in the commercial segment. "UH REIT's focus on prime Lagos properties has paid off, as demand for quality office spaces remains resilient," said a real estate analyst at Lagos-based consultancy. Looking ahead, the trust plans to acquire two additional properties in Ikeja and Victoria Island by year-end, funded through a combination of retained earnings and a new N300 million bond issuance.
The board has declared an interim dividend of N0.35 per unit, payable to shareholders on record as of August 15, 2026. This represents a 40% increase over the H1 2025 dividend of N0.25 per unit.
Shareholder Reaction
Investors responded positively to the news, with the stock gaining 5% on the Nigerian Exchange to close at N14.20 per unit. Trading volume surged to 2.3 million units, triple the daily average. Market watchers expect continued interest as the trust approaches its full-year target of N1 billion profit.
