UPDC Real Estate Investment Trust (REIT)
THE UPDC REAL ESTATE INVESTMENT TRUST
UPDC Real Estate Investment Trust (REIT) is a close-ended real estate fund listed on the Nigerian Exchange Limited (NGX) and regulated by the Securities and Exchange Commission (SEC). UPDC REIT is Nigeria’s largest REIT by net asset value and has a diversified portfolio of real estate assets in Lagos.
The primary objective of the REIT is to provide unitholders with stable cash distributions, and this is achieved through the distribution of 90% of its net income as dividends.
Benefits of the UPDC REIT for Investors
- Stable income
- Long term capital preservation
- Semi-annual distribution of income to unit holders or investors
- Transparency
- Liquidity
- Portfolio diversification
- Ownership of a piece of investment grade real estate
- Tax exemption on income receivable by the REIT
Real Estate Investment Trusts (REIT) offers investors the benefits of real estate investment along with the ease and advantages of investing in publicly traded stock. REITs are required to distribute at least 75% of their taxable income to shareholders annually in the form of dividends. REITs' income is primarily earned from rental income from investment properties and interest income from financial instruments.
THE FUND MANAGER – STANBIC IBTC ASSET MANAGEMENT
Stanbic IBTC Asset Management was appointed Fund Managers for the UPDC REIT in May 2021. Our extensive experience speaks for us. We have been serving Nigerians with expert investment management for over two decades and as is our practice, we continue to lead the way in providing innovative solutions, which stood as a distinguishing factor for us being appointed the preferred fund managers for the Nigeria’s leading listed property fund, UPDC REIT.
Stanbic IBTC Asset Management is one of Nigeria’s leading investment managers with a total of 16 Collective Investment Schemes for investors to choose from. This is the highest pool of funds managed by any Securities and Exchange Commission (SEC) registered fund manager in Nigeria.
Stanbic IBTC Asset Management offers you flexibility and quality service. Our solid track record of excellence evidenced in our leadership in product offerings to individual and institutional investors which is proof of the value we bring to investors who trust us with managing their assets.
WHY CHOOSE UPDC REIT
UPDC REIT is a publicly listed close-ended REIT with the primary objective of providing investors with stable income while preserving capital over the long term. It is Nigeria’s leading listed property fund publicly traded on the NGX and the most traded REIT on the NGX. It is currently the largest REIT in Nigeria by Net Asset Value (NAV). We distribute at least 90% of the Fund’s net income twice yearly.
The REIT is currently invested in the below asset classes:
- Residential
- Commercial
- Purpose Built Student Accommodation (PBSA)
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FREQUENTLY ASKED QUESTIONS
- What is a REIT?
REIT stands for Real Estate Investment Trust. REITs are modelled like Mutual Funds, but the primary underlying instruments invested in are Real Estate and Real Estate Related Assets.
- What are the types of REITs we have?
- Equity REITs
- Mortgage REITs
- Hybrid REITs
- What type of REIT is UPDC REIT?
UPDC REIT is an equity REIT
- Is the REIT open ended or closed ended?
The REIT is a closed ended unit trust scheme.
- Who can invest in a REIT?
Investors with interest for real estate investments without the appetite and capacity for direct ownership
- How do I invest in UPDC REIT?
The fund is actively traded on the NGX, and investors can buy unit shares through their stockbrokers. For further details on how to invest in the Trust, please reach out to the Stanbic IBTC Stockbrokers Limited on email: [email protected]
- How does the REIT generate income?
The primary source of income for the REIT is from rental income from investment properties. Other sources of income include interest income from financial instruments.
- Who governs the activities of the Fund?
The REIT structure is governed by a Trust Deed approved by the Nigerian Securities and Exchange Commission. The operations of the REIT are overseen by an Investment Committee comprising of the Fund Manager, Trustees, Sponsor, and independent members.
- What is the UPDC REIT’s rating?
UPDC REIT has an “A-(NG)” rating assigned by GCR with the outlook accorded as Stable.
- Will there be periodic distributions to investors in the Fund?
Yes, there are semi-annual distributions to investors. The Fund’s distribution policy states that at least 90% of net income is distributed twice yearly.
- Will the Fund have a pre-defined tenor?
No.
- Can I liquidate my investment?
The Fund is listed on the floor of NGX. Investors can sell their units or buy more units through their Stockbrokers.
- Will performance reports be shared with investors?
Management account of the REIT is published on NGX quarterly.
For further enquiries, please contact us:
Email: [email protected]