UPDC REIT loses 17.3% in a week as N9.75bn wiped off market value
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UPDC REIT units fell from N21.15 to N17.50 in the week to October 23, erasing about N9.75 billion in market capitalisation, even as the trust's half-year rental income rose 88.35%.
Units of UPDC REIT fell from N21.15 at the close of trading on October 16 to N17.50 on October 23, wiping approximately N9.75 billion off the trust's market capitalisation based on 2.668 billion outstanding units, Tribune Online reported.
The weekly decline followed a 10 per cent loss in the preceding week, when the price dropped from N23.50 to N21.15. The units opened October at N20.65, rallied to N26.40 on October 12, then reversed to N26.10 on October 13, N23.50 on October 14 and N21.15 on October 16. After holding at N21.15 on October 19 and 20, the price fell 9.93 per cent to N19.05 on October 21 and another 8.14 per cent to N17.50 on October 23.
From the October 12 close to the October 23 close, the trust lost 33.71 per cent of its market price in eight trading sessions, equivalent to a paper loss of N8.90 per unit for buyers at the October 12 price. The units are down 15.25 per cent since the beginning of October.
The reversal contrasts with improved operating performance. UPDC REIT's unaudited results for the six months ended June 30, 2026 showed rental income up 88.35 per cent to N1.58 billion from N837.15 million a year earlier, total revenue up 42.96 per cent to N2.20 billion, and net assets attributable to unit holders up 56.46 per cent to N1.72 billion. Earnings per unit improved to N0.64 from N0.41, even as operating expenses rose to N559.68 million from N389.16 million and the trust booked an N81.88 million impairment charge on receivables.
On valuation, the trust reported net assets attributable to unit holders of N36.32 billion at June 30, 2026, or roughly N13.61 per unit. At the October 23 close of N17.50 the units traded at a premium of about 28.6 per cent to that net asset value, down from roughly 94 per cent at the October 12 peak of N26.40.
The divergence between improving reported earnings and the price correction points to the influence of valuation adjustments, profit-taking and market sentiment on the pricing of the listed trust, the report said, while noting that the June net asset value is a historical balance-sheet measure rather than a current estimate of liquidation value.