UPDC REIT, a real estate investment trust promoted by UAC Property Development Company Plc, on Tuesday received the approval of its unit holders to pay N2.33bn as final distribution for the 19-month period ended December 31, 2014.
The unit holders approved the distribution at the REIT’s first Annual General Meeting, which was held in Lagos.
The amount translates to 31 kobo per unit for unit holders of the REIT, which had in December last year made an interim distribution of 56 kobo to unit holders for the 13-month period ended June 30, 2014.
That brought the total distribution paid by the REIT for the 19 month period to 87 kobo per unit.
The Managing Director of the Fund Manager to the REIT, FSDH Asset Management Limited, Mrs. Olumayowa Ogunwemimo, told unit holders at the AGM that the REIT was mandated to distribute 90 per cent of its received income to unit holders.
She explained that in line with the mandate, the total distribution made by the REIT represented 90 per cent of the distributable income for the period ended December 31, 2014.
Also, she pledged that the REIT would always make distributions annually and encourage the unit holders to expect distributions from the REIT because the properties in the REIT remained quality real estate assets with high occupancy rate and good rental yield.
In approving the distribution, the unit holders commended the fund manager and expressed satisfaction over the distribution.
They also called on the fund manager to continue to keep its promises and sustain the payment of good distribution.
FSDH Asset Management Limited commenced the management of the UPDC REIT, a REIT promoted by UACN Properties Development Company, in July 2013.
Apart from the proposal and approval of the distribution, the AGM also involved the presentation and adoption of the REIT’s audited financial statement for the 19 months to December 31, 2014 and determination of the remuneration of the auditor.
According to Ogunwemimo, the reason for the audit of the 13 and 19 months rather than the usual 12 months is due to the desire to meet the expectations of unit holders.
She explained that in order to meet unit holders’ expectation of regular income distribution, FSDH Asset Management Limited sought and received the Securities and Exchange Commission’s approval to conduct an interim audit of the UPDC REIT for the first 13 months period ended June 30, 2014.
The full-year audit of the UPDC REIT for the 19-month period ended December 31, 2014 was done to enable the REIT pay the final distribution for the year ended December 31, 2014.
She added that, going forward, the REIT would maintain a 12-month financial year calendar.
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Source : Punch