UACN Property Development Company Plc has received the approval of its shareholders to pay a dividend of N70 kobo per ordinary share held and one for four bonus shares.

The shareholders gave the approval on Wednesday in Lagos at the company’s Annual General Meeting where they were briefed by the management on its performance in 2013.

The Chairman, UPDC, Mr. Larry Ettah, explained that despite the challenging environment in which the company operated, its profit before tax rose to N3.71bn in 2013, from N2.45bn in 2012, while its profit after tax hit N3.16bn for the 2013 financial year.

He explained that it was as a result of the positive performance that the Board of Directors recommended the N962.5m dividend, which represented 70 kobo per ordinary share held as of May 5, 2014, and a bonus issue of one for four shares to shareholders who were on the register of members at the close of business on May 12, 2014.

During the year under review, Ettah said the company reinforced its standing as a market leader.

He said, “We successfully completed the floatation of the UPDC Real Estate Investment Trust in 2013 on a capital value of N26.7bn, of which UPDC currently holds 62.2 per cent. The REIT was listed on the Nigerian Stock Exchange on July 1, 2013. It is our plan to reduce our holding to 40 per cent in line with our strategy.”

Ettah added that the company also completed some major housing projects during the year.

For instance, he said, “In the luxury residential category, we completed and delivered to buyers the prestigious 32-unit ‘Cameron Green’ Ikoyi. Phase 1 of Metro City, Abuja comprising of 88 units of mixed residential apartments was also completed and is being gradually handed to buyers, while construction work on Phase 2 has commenced.

“We also took advantage of the lack of a formal retail channel in the Festac axis of Lagos State by undertaking the ongoing Festival Mall development, which is expected to open to customers by end of 2014.”

On the performance of the company’s hotel business, he said, ”Golden Tulip Festac, also performed well in 2013, with room occupancy averaging 44 per cent, an increase of 91 per cent over 2012. With five international airlines currently utilising the hotel’s facilities and continuing upward trend in residential conferences by blue chip corporate customers, the hotel is set for improved performance from 2014. We plan to develop the adjoining Block B of the hotel into residential apartments in 2014.”

According to Ettah, it is expected that the revised guidelines for primary mortgage banks and a fully operational National Mortgage Refinance Company will provide a wider scope of activities and opportunities for estate developers and ultimately result in affordable mortgages and increased home ownership for middle and lower income earners.

2014-06-06