UH Real Estate Investment Trust reports N518.5 million profit in H1 2026

UH Real Estate Investment Trust (UH REIT) has reported net income of 518.50 million for the six months ended June 30, 2026, up 19.86% from N432.59 million in the corresponding period of 2025, supported by stronger rental and interest income.

Total income for the period rose 36.19% to N747.23 million from N548.65 million in H1 2025, according to the Fund’s interim financial statements filed with the Nigerian Exchange (NGX) on Wednesday. Basic earnings per unit improved to N2.76 from N2.30 a year earlier.

The fund paid a dividend of N1.04 billion during the six months ended June 30, 2026, compared with a dividend payment of N957.98 million in 2025, representing an increase of approximately N86.12 million or 9.0% year-on-year.

Key Highlights (H1,2026 vs H1, 2026 Y-o-Y):

Total income: N747.23 million, up +36.19% from N548.65 million
Rental income: N393.52 million, up +5.23% from N335.96 million
Interest income: N251.86 million, up +19.4% from N210.97 million
Sundry income: N101.85 million, up +5,818.07% from N1.721 million
Distribution/admin and other expenses: N228.73 million (up 97.05% YoY)
Net income: N518.50 million, up +19.86% from N432.59 million
Total assets: N28.66 billion (down 1.69% from N29.15 billion as of Dec 2025)
Investment properties: N25.28 billion (down 1.74% from N25.73 billion)
Cash and cash equivalents: N2.38 billion (down 1.63% from N2.42 billion)
Net assets/unitholders’ equity: N27.44 billion (down 1.81% from N27.95 billion)
Basic earnings per unit: N2.76

Driving the numbers:

UH REIT’s income growth was broad-based across its three revenue streams, though rental income remained the Fund’s primary driver, contributing N393.52 million, or 52.7% of total income.

Interest income followed at N251.86 million, representing 33.7% of total income.
Sundry income contributed N101.85 million, or 13.6% of the total, a sharp jump from just N1.72 million in the same period last year.

On the cost side, distribution, administrative and other expenses nearly doubled to N228.73 million from N116.06 million, significantly outpacing the growth in income.

Managers’ fees were the largest single cost item at N139.56 million, up from N53.83 million a year earlier and accounting for about 61% of total operating expenses.
Other administrative expenses stood at N58.51 million, up from N40.97 million.
Custodian fees rose to N13.96 million from N5.38 million.
CSCS eligible and listing fees came in at N4.34 million, while insurance costs stood at N5.78 million.
Trustee, auditors’, and rating agency fees remained flat at N1.25 million, N1.50 million, and N1.25 million respectively.

Despite the sharp rise in expenses, income growth was strong enough to still deliver a near-20% increase in net income for the period.

Balance Sheet and NAV:

UH REIT closed H1 2026 with total assets of N28.66 billion, down slightly from N29.15 billion at the end of 2025.

Investment properties remained the dominant asset class at N25.28 billion, or about 88% of total assets. This indicates a marginal decline from N25.73 billion following a fair value markdown on the Fund’s Macdonald, Ikoyi property, which fell to N2.70 billion from N3.15 billion.
Cash and cash equivalents stood at N2.38 billion, comprising mostly Treasury Bills (N2.37 billion) and a small residual cash balance.
Investment in FGN Sukuk was held steady at N490 million.
On liabilities, total current liabilities rose to N1.22 billion from N1.20 billion, driven by higher accruals and other payables (N907.01 million, up from N761.25 million), even as rent received in advance declined to N310.05 million from N442.80 million.
Net assets attributable to unitholders stood at N27.44 billion, down 1.81% from N27.95 billion at year-end 2025.

Unitholders’ equity was flat at N9.41 billion, while revenue reserves declined to N18.04 billion from N18.54 billion.