UPDC REIT rallies 34.9% as rental income surge outpaces Nigerian market
Written on
UPDC Real Estate Investment Trust was the Nigerian Exchange's top gainer for the week ended September 18, rising 34.91 per cent to ₦18.55, a repricing that has run ahead of a first-half earnings increase driven by an 88.35 per cent jump in rental income.
UPDC Real Estate Investment Trust’s sharp rally on the Nigerian Exchange has significantly outpaced the growth in its underlying earnings, as investors aggressively repriced the real estate investment vehicle amid a strong improvement in rental income.
UPDC REIT emerged as the top gainer for the week ended September 18, 2026, rising from ₦13.75 on September 11 to ₦18.55, a 34.91 per cent weekly gain delivered across five consecutive advancing sessions. Trading activity accelerated with the rally, with 16.39 million units changing hands over the six sessions from September 11 to 18, including 5.08 million units on the Friday alone. At ₦18.55, the trust’s market capitalisation stood at about ₦49.50 billion on 2.668 billion units outstanding, and the unit has gained 168.84 per cent year to date.
The repricing came against materially stronger operating income in unaudited financial statements for the six months ended June 30, 2026. Rental income, the trust’s principal revenue stream, rose 88.35 per cent year on year to ₦1.577 billion from ₦837.15 million, lifting total revenue 42.96 per cent to ₦2.197 billion. Interest income from bank deposits remained significant at ₦607.93 million, though it declined from ₦633.86 million a year earlier, so the stronger rental stream provided the main source of revenue growth.
Net assets attributable to unit holders rose 56.46 per cent to ₦1.719 billion from ₦1.099 billion, while earnings per unit increased to ₦0.64 from ₦0.41. The balance sheet also strengthened: investment property increased to ₦30.836 billion at June 30 from ₦29.595 billion at December 31, 2025 — chiefly on ₦1.241 billion of additions, with no fair-value revaluation gain — while total assets rose to ₦38.768 billion and cash and cash equivalents to ₦7.149 billion.
The trust distributed ₦880.53 million to unit holders during the first half of 2026, compared with ₦1.393 billion distributed across the whole of 2025. Operating expenses rose to ₦559.68 million from ₦389.16 million in the first half of 2025, and the trust recorded an ₦81.88 million impairment charge on receivables against a ₦48.85 million reversal a year earlier; the expense increase was more than offset by rental and other operating income growth.
At ₦18.55, UPDC REIT is trading substantially above the net asset value reported at June 30. Net assets attributable to unit holders stood at ₦36.316 billion at that date, or approximately ₦13.61 per unit on 2.668 billion units outstanding, implying a premium of roughly 36.3 per cent to the June NAV. The market’s renewed interest therefore has a clear fundamental backdrop, though the pace of the share-price appreciation has been considerably faster than earnings growth.