Uhreit)- quarter 5 - financial statement for 2025

(formerly)

(formerly)

Fund Manager, Professional Advisers etc 1

Statement of Fund Manager's responsibilities 2

Statement of Trustees' responsibilities 3

Report of Fund Manager 4

Report of the Trustee 12

Certification of the Accounts by Directors of the Fund Manager 14

Report of the Independent Auditor 15

Statement of Comprehensive Income 18

Statement of Financial Position 19

Statement of Changes in Equity 20

Portfolio Statement 21

Statement of Cashflows 22

Notes to the Financial Statements 23

Other national disclosures

Statement of value Added 43

Five-Year Financial Summary 44

P a g e | 1

(formerly)

Lagos.

Trustee to the Fund: United Capital Trustees Limited, 3rd& 4thFloor, Afriland Towers, 97/105, Broad Street,

Lagos.

Custodian: UBA Global Investor Services, UBA House (11thFloor),

57, Marina, Lagos.

Lagos.

Kresta Laurel Complex (4thFloor), 376, Ikorodu Road,

Maryland, Lagos.

UH REAL ESTATE INVESTMENT TRUST

(formerly)

UNION HOMES REAL ESTATE INVESTMENT TRUST STATEMENT OF FUND MANAGER'S RESPONSIBILITIES

The responsibilities of the Manager to the Fund are as follows: -

1. To carry on and conduct the business of the Fund in a proper and efficient manner and in particular, to diligently carry out the purpose for which Units are issued.

2. To act with prudence in relation to all moneys and accounts kept for the purpose of the Fund.

3. To keep proper books of accounts and prepare financial statements for the Fund and therein make true and proper entries of all affairs.

4. To issue jointly with the Trustee, certificates evidencing the purchase of Units of the Fund.

5. To invest the portfolio pool in a manner consistent with the investment objective of the Fund and investment guidelines.

6. To pay out of the Fund all expenses incurred or to be met in connection with the management of the Fund.

7. To appoint, with the consent of the Trustee, the Auditor to the Fund.

8. To make periodic returns to the Securities and Exchange Commission as may be specified from time to time.

9. To periodically avail unit-holders with information relating to the performance of the Fund.

10. To convene Annual General Meeting of the Fund's unit-holders.

Ilodianya Patrick FRC/2013/ICAN/00000002177

Director

13 March 2026

Gbenro Yemi FRC/2014/CIB/00000002190

Director

13 March 2026

UH REAL ESTATE INVESTMENT TRUST

(formerly)

UNION HOMES REAL ESTATE INVESTMENT TRUST STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustee's responsibilities to the Fund are as follows: -

1. Represents the interest of investing public and therefore play an oversight role in the operations and investments of the REIT.

2. The Trustees are meant to monitor the activities of the Fund Manager on behalf of and in the interest of the Unit holders.

3. The Trustees are required to monitor the register of Unit holders.

4. The Trustees are required to ascertain the profitability rationale for investment decision-making of the Fund Manager.

5. The Trustees are required to approve all major investments from the REIT's funds.

6. The Trustees are required to ascertain that monthly and other periodic returns/reports relating to the REIT are forwarded by the Fund Manager to the Securities and Exchange Commission (SEC).

   
   
   

7. The Trustees are also required to report any breach of the existing Laws, Rules and Regulations or Terms of the Trust Deed to the Securities and xc ange Commission (SEC).

Lagos, Nigeria 13 March 2026

LEO OKAFOR, FCIS FRC/2013/NBA/0000000252O

Group Company Secretary

(formerly)

1. Fund overview

   	Fund Manager	SFS Capital Nigeria Limited	Trustee	United Capital Trustees Limited
   	Fund Type	Close-Ended REIT (NGX Listed)	Units in Issue	188,127,066 units at N50 nominal
   	Custodian	UBA Global Investor Services	Auditors	Baker Tilly Nigeria

   UH REIT is an actively managed, close-ended REIT listed on the Nigerian Exchange Group, established to provide long-term capital appreciation by investing a minimum of 90% of assets in Real Estate and Real Estate-related investments. The Fund is regulated under the Investment and Securities Act 2007 and governed by a Trust Deed with United Capital Trustees Limited.

2. Economic and real estate market review - 2025
   1. Macroeconomic overview

      Nigeria's economy navigated a complex but increasingly stable environment in 2025. Real GDP grew an estimated 3.87% year-on-year, up from 3.38% in 2024. The oil and non-oil sectors contributed to expansion, with the non-oil sector accounting for 97.13% of GDP in Q4 2025. The NBS also recorded real GDP growth of 4.07% in Q4 2025, indicating accelerating momentum into year-end. The construction sector grew 5.08% year-on-year in Q4 2025, while the real estate services sector registered growth of 3.43%.

      Inflation was the defining macroeconomic challenge, though the trend was strongly positive. The NBS rebased the Consumer Price Index in early 2025 to a 2024 base year. On the new basis, headline inflation stood at 24.48% in January 2025, declining for ten consecutive months to 15.15% in December - the lowest reading since November 2020 - with the 2025 annual average estimated at 20.5%. Food inflation eased for five consecutive months into year-end, reaching 10.84% in December, while core inflation moderated to 18.63%. The CBN MPC held the MPR at a record-high 27.50% through H1 2025 before cutting by 50 basis points to 27.00% in September, retaining that level in November, as sustained disinflation created room to begin a measured easing cycle.

      Macro Indicator	2025 Reading	2024 Comparison	Direction
      Real GDP Growth (CBN estimate)	3.87%	3.38%	Improving
      Headline Inflation (Dec 2025, rebased CPI)	15.15%	~34% (old basis)	Moderating
      Average Annual Inflation (estimated)	~20.5%	~33.18%	Declining
      CBN MPR at Year-End	27.00%	27.25%	Easing
      Gross External Reserves (year-end)	~US$45.5bn	US$40.9bn	Strengthening
      Naira (approx. year-end, official market)	~N1,429/$	~N1,535/$	Stabilising
      Real Estate Sector GDP Growth (Q4 2025)	3.43%	5.28%	Positive

      The naira opened 2025 at approximately N1,535/$ and briefly weakened to N1,629/$ in April before recovering through H2, supported by improved oil receipts, stronger remittance flows, and reduced CBN legacy FX obligations. By year-end, the official rate stabilised around N1,429/$. External reserves rose from US$40.9 billion to an estimated US$45.5 billion, providing a materially stronger buffer against shocks. These macro-stabilisation gains - alongside the naira's partial recovery - created a more constructive backdrop for private investment and hard asset appreciation. The elevated rate environment proved directly beneficial to the Fund through higher treasury bill and placement yields.

   2. Nigeria Real Estate Market Review - 2025

      Nigeria's real estate sector demonstrated resilience and meaningful capital value appreciation in 2025. The sector's structural demand drivers remained firmly intact: a national housing deficit estimated at 22 to 28 million units, urbanisation rates above 3% annually, a growing high-net-worth residential segment, and increasing use of premium property as a store of value against naira depreciation. Lagos and Abuja continued to dominate premium residential investment activity and set national price benchmarks.

      In Lagos, prime residential locations - Ikoyi, Victoria Island, Lekki - recorded rental rate growth of 10-20% in naira terms, reflecting inflationary pass-through and genuine demand-supply imbalance driven by severely constrained supply of Grade-A stock. Corporate, diplomatic and high-net-worth occupier demand remained firm, and the short-let market expanded across key Island addresses. In Abuja, residential values in prime districts appreciated approximately 8-10% annually, underpinned by government, diplomatic and institutional demand. Select submarkets were more volatile - Utako recorded year-on-year price doubling while Kado saw 39% gains - while established premium zones offered steadier, income-oriented returns. Construction costs remained approximately double 2022 levels (cement, blocks, finishing materials), limiting new supply and reinforcing the structural support for existing premium property values. These macro and micro dynamics directly underpinned the Fund's portfolio revaluation.

3. Fund performance review

   N27.95bn

   Net Asset Value

   +161.5% YoY

   N18.22bn

   Profit Before Tax

   +1,623% YoY

   N96.84

   Earnings Per Unit

   vs N5.56 (2024)

   2025 was a landmark year for UH REIT. The Net Asset Value surged from N10.69 billion to N27.95 billion, driven by a N16.45 billion independent property revaluation gain. Excluding these non-cash items, underlying net income from investment activities grew 8.5% to N1.15 billion, reflecting continued operational strength.

   Item	2025 (N'000)	2024 (N'000)	Change
   Rental Income	723,593	618,119	+17.1%
   Interest Income	357,813	324,204	+10.4%
   Profit on Property Disposals	307,107	329,643	-6.8%
   Sundry Income	4,371	5,810
   Total Investment Income	1,392,884	1,277,776	+9.0%
   Operating Expenses	(246,081)	(220,503)	+11.6%
   Net Income (ex-revaluation & swap)	1,146,803	1,057,273	+8.5%
   Gain on Share Swap	625,392	-	N/A
   Revaluation Gain on Properties	16,445,556	-	N/A
   Profit Before Tax	18,217,751	1,057,273	+1,623%
   Profit After Tax	18,217,726	1,045,134	+1,643%
   Earnings Per Unit (N)	96.84	5.56	+1,641%

   Rental income grew 17.1% to N723.6 million on improved occupancy and upward lease renewals. Interest income rose 10.4% to N357.8 million, benefiting from elevated treasury bill rates. Operating expenses increased 11.6% to N246.1 million - broadly in line with inflation - with management fees (N107.7 million) and SEC supervisory fees (N24.1 million) as the primary items.

4. Investment property portfolio

   The Fund holds ten premium residential properties in Lagos and Abuja, plus FGN Sukuk holdings. In December 2025, UBOSI ELEH + CO (Estate Surveyors & Valuers) conducted an independent valuation, resulting in a total fair value gain of N16.45 billion. As at 31 December 2025, 94.52% of assets are held in Real Estate - comfortably above the 90% SEC regulatory minimum.

   Property	Location	Opening (N'000)	Reval. Gain (N'000)	Closing Value (N'000)
   1 Sinari Daranijo Street	V/I, Lagos	2,692,455	4,237,545	6,930,000
   28A Rumens Street	Ikoyi, Lagos	1,703,461	3,346,539	5,050,000
   11A Sapara Williams Street	V/I, Lagos	1,733,876	2,282,973	4,020,000
   McDonald Court, Block 4-6	Ikoyi, Lagos	1,143,143	2,149,749	3,149,974
   Locke Apartments	Lekki, Lagos	665,701	1,893,838	2,700,000
   9 Mike Akhigbe Way	Abuja	418,421	1,381,578	1,800,000
   Other Properties & Sukuks	Various	1,611,670	1,153,330	2,565,000
   TOTAL		9,968,727	16,445,552	26,214,974

5. Financial position and cashflow

   	Balance Sheet	2025 (N'000)	2024 (N'000)	Cash Flow	2025 (N'000)
   	Investment Properties	26,214,974	9,968,727	Operating Cash Flow	793,574
   	Cash & Equivalents	2,417,072	2,088,470	Investing Cash Flow	493,010
   	Other Assets	546,307	570,539	Dividends Paid	(957,982)
   	Total Assets	29,178,353	12,627,736	Net Cash Increase	328,602
   	Total Liabilities	(1,231,449)	(1,940,576)	Closing Cash	2,417,072
   	Unit Holders' Fund	27,946,904	10,687,160	NAV per Unit (N)	148.55

   Total liabilities declined 36.5% to N1.23 billion, driven by settlement of legacy accruals including the N625.4 million share swap gain recognised in 2025. Rent received in advance rose 20.5% to N442.8 million, reflecting strong forward lease coverage. Dividends of N957.98 million were paid to unit holders in 2025 in respect of 2024 earnings, representing a 61.6% increase on the N592.6 million paid in 2024. A proposed dividend of N1.032 billion has been set aside for distribution in respect of 2025 earnings, representing growth of 7.7% on the prior year's cash distribution.

6. Five-year financial summary

   	Metric (N'000)	2025	2024	2023	2022	2021
   	Investment Income	1,392,884	1,277,776	884,278	659,909	576,083
   	Profit After Tax	18,217,726	1,045,134	656,129	430,849	393,083
   	Unit Holders Fund	27,946,904	10,687,160	10,234,626	9,973,564	9,902,038
   	EPS (N)	96.84	5.56	3.49	2.29	2.09
   	NAV per Unit (N)	148.55	56.82	54.40	53.02	52.63

7. Economic outlook, real estate forecast and conclusion
   1. Nigeria Economic Outlook - 2026

      The outlook for Nigeria's economy in 2026 is broadly positive, underpinned by sustained reform momentum, improving macro-stability, and a more favourable global backdrop. The CBN's Macroeconomic Outlook projects real GDP growth of 4.49% in 2026, up from 3.87% in 2025, driven by continued structural reforms, a gradually easing monetary policy stance, and improved investor confidence. This aligns with IMF projection of 4.4% GDP growth for 2026. Oil sector performance is expected to improve as investment in upstream production and the ramp-up of domestic refining capacity supports both export volumes and reduced import costs.

      2026 Economic Indicator	CBN / Consensus Forecast	2025	Implication for UH REIT
      Real GDP Growth	4.49% (CBN)	3.87%	Positive - supports occupier demand
      Headline Inflation (avg.)	~12.94% (CBN)	~20.5%	Positive - eases operating cost pressure
      CBN MPR trajectory	Gradual easing expected	27.00% (Nov 2025)	Positive - supports money mkt yields near-term
      External Reserves	~US$51bn (CBN proj.)	~US$45.5bn	Positive - FX stability supports valuations
      Naira stability	Broadly stable	~N1,429/$	Positive - reduces import cost inflation

      Headline inflation is projected by the CBN to moderate to an average of approximately 12.94% in 2026, driven by declining food and fuel prices, naira stability, and the ongoing impact of tight monetary policy. If realised, this would represent a sharp improvement and create conditions for more meaningful real monetary policy easing through the year. PwC's Economic Outlook 2026 similarly identifies fiscal discipline and FX reforms as key stabilisers, projecting the naira to

      remain broadly stable while cautioning that elevated debt-service obligations and low revenue-to-GDP ratios continue to constrain fiscal flexibility. For UH REIT, the macro trajectory for 2026 is constructive: moderating inflation reduces operating cost pressure; a stable or strengthening naira reduces import cost pass-through; and any interest rate easing enhances investment yields and asset values more broadly.

   2. Geopolitical Risk: The US-Iran War and Implications for Nigeria

      Post-Reporting Date Event: This report covers the financial year ended 31 December 2025. However, at the time of signing in March 2026, a significant geopolitical event has materially altered the global outlook. On 28 February 2026, the United States and Israel launched joint military strikes against Iran, targeting its nuclear and ballistic missile programme. Iran responded by launching hundreds of drones and ballistic missiles against US military bases across Bahrain, Jordan, Kuwait, Qatar, Saudi Arabia, Turkey and the UAE, and by effectively closing the Strait of Hormuz - the world's most critical energy chokepoint, through which approximately one-fifth of global daily oil supply passes. As of the date of this report, the conflict is in its third week with no ceasefire in sight, Brent crude has crossed US$100 per barrel for the first time since 2022, and the IEA has announced the largest-ever release of emergency strategic petroleum reserves. The Fund Manager considers this a material post-balance sheet event with direct bearing on the 2026 outlook for Nigeria's economy and real estate market.

      Factor 1 - Nigeria as a Non-Hormuz Oil Exporter: A Structural Beneficiary

      Nigeria's crude oil is produced from the Niger Delta and exported via the Gulf of Guinea - entirely outside the Strait of Hormuz. This geography is a critical distinction. As the Strait has effectively closed and an estimated 15-20 million barrels per day of Gulf crude is stranded from global markets, buyers in Asia, Europe and beyond are urgently seeking alternatives. Nigerian crude - light, sweet and logistically unconstrained - is among the most substitutable replacement supply. Brent crude surpassed US$100 per barrel by 13 March 2026 and analysts at Rystad Energy project US$110 per barrel within two months and potentially US$135 per barrel if the conflict extends to four months. For Nigeria, this creates a direct and substantial economic windfall: significantly higher export revenues and external reserve accumulation well beyond the CBN's pre-conflict US$51 billion projection; a naira strengthening impulse from surplus USD inflows that could bring real interest rates into positive territory sooner than planned; higher FAAC allocations enabling infrastructure spending that historically correlates with premium residential demand in Lagos and Abuja; and a flight-to-hard-assets dynamic that reinforces premium property's role as a store of value for diaspora investors and domestic high-net-worth individuals.

      On balance, the Fund Manager views Nigeria's structural position as a non-Hormuz, Atlantic-basin oil exporter as a net positive for the macroeconomic backdrop underpinning the Fund's portfolio. The baseline CBN and PwC forecasts referenced in Section 7.1 were prepared before the conflict and are likely to understate actual 2026 outcomes for Nigeria's public finances, reserves and exchange rate.

      Factor 2 - Downside Risks: Global Stagflation, Construction Cost Inflation and Recessionary Spillovers

      The conflict also introduces material downside risks that the Fund Manager is monitoring closely. Nigeria's retail fuel prices have already risen approximately 35% since the war began - the third-highest increase globally - reflecting the pass-through from global crude prices into the domestic market. This could reignite inflationary pressures and slow the CBN's disinflation

      trajectory, delaying the anticipated monetary easing cycle. Oxford Economics has modelled a scenario in which global oil prices averaging US$140 per barrel for two months would be sufficient to push the eurozone, UK and Japan into mild recession while causing a near-standstill in the US economy. Goldman Sachs has already raised its 2026 US recession probability to 25%. A global downturn of that nature would suppress foreign direct investment into Nigeria, reduce diaspora remittances - a key source of USD inflows - and tighten global financial conditions, all of which would be negative for Nigerian asset values and occupier demand.

      For the UH REIT portfolio directly, the most immediate risk channel is construction cost inflation. Building materials - cement, steel, aluminium - are globally priced and energy-intensive to produce. Sustained oil above US$100 per barrel would further elevate already-elevated Nigerian construction costs (cement prices have already doubled since 2022), tightening new supply pipelines and reinforcing the scarcity of Grade-A stock in Ikoyi, Victoria Island and Lekki - paradoxically a secondary positive for existing portfolio values, though it increases maintenance and capex costs. The Fund Manager is also alert to heightened insurance premiums for properties near diplomatic and government compounds, given the elevated regional security environment.

      The Fund Manager's overall assessment is that the balance of geopolitical risk from the US-Iran conflict is net positive for Nigeria and for UH REIT's portfolio in the near term, given Nigeria's unique position as a major non-Hormuz oil exporter. The more significant risks relate to second-order global recessionary dynamics if the conflict escalates materially. The Fund Manager will continue to monitor developments closely and will update unit holders through periodic communications as the situation evolves.

   3. Nigeria Real Estate Market Forecast - 2026

      The outlook for Nigeria's premium residential real estate market in 2026 is positive, though the pattern of growth is expected to be more localised and selective than the broad-based appreciation observed in 2024 and 2025. The structural demand fundamentals - urbanisation, housing deficit, population growth, and property as a currency hedge - remain unchanged. The key variables shaping 2026 performance include the pace of inflation moderation, infrastructure project completion, and the availability of new supply.

      In Lagos, property prices in high-demand locations are projected to rise between 15-30% in areas benefiting from major infrastructure catalysts. The Lagos-Calabar Coastal Highway (Phase 1, Section 2 financing secured in December 2025) and the Fourth Mainland Bridge project are reshaping accessibility and creating new value corridors along the Ibeju-Lekki and Ajah axes. Prime and established locations such as Ikoyi and Victoria Island - where the majority of UH REIT's portfolio is concentrated - are forecast to see more moderate but sustained appreciation of 5-12%, as these mature markets reflect strong income generation rather than speculative uplift. Rental rates are expected to remain elevated and continue rising, though the pace of increase may moderate from 2024-2025 peaks as affordability constraints tighten at the margin. Residential rental yields are expected to stabilise at mid-single-digit levels as both rents and capital values continue to rise in tandem.

      In Abuja, the market is expected to deliver steady, income-oriented performance. Residential land values in prime districts are forecast to appreciate 8-10%, consistent with 2025 trends, underpinned by government, diplomatic and institutional demand. The 9 Mike Akhigbe Way property - one of UH REIT's Abuja holdings - is well-positioned in a high-demand residential

      -Page 11-

      corridor. Across Nigeria's real estate market broadly, Statista forecasts the sector to compound at approximately 6.87% annually through 2029, reaching US$3.41 trillion in market volume by that date.

      Key risks to the real estate outlook include: a more persistent-than-expected inflation environment that delays monetary easing; potential government policy intervention to address affordability; and the possibility of additional Grade-A supply entering the market in certain submarkets. However, for a portfolio concentrated in Ikoyi, Victoria Island, Lekki and Maitama

      - locations with the most restricted land supply in Nigeria - the structural demand-supply imbalance is expected to remain a durable support for capital values.

   4. Regulatory Compliance

      The Fund remains fully compliant with all SEC asset allocation requirements (94.52% in Real Estate vs. 90% minimum) and continues to benefit from approved tax concessions including exemption from Companies Income Tax, stamp duties, and Capital Gains Tax on qualifying disposals. No contingent liabilities or related party transactions were recorded in 2025.

   5. Conclusion

2025 marks a watershed year for UH REIT. The Fund's NAV more than doubled - from &10.69 billion to &27.95 billion - reflecting the first comprehensive independent property revaluation in several years, confirming the substantial latent value built into the portfolio. Underlying income performance was strong: investment income grew 9.0% and recurring net income rose 8.5%. Dividends paid in 2025 in respect of 2024 earnings amounted to N957.98 million, a 61.6% increase on the &592.6 million paid in the prior year; the proposed distribution for 2025 earnings stands at Al.032 billion, a 7.7% increase on the prior year's cash payment. Looking into 2026, the economic and real estate environments are broadly constructive, and Nigeria's position as a non-Hormuz oil exporter provides meaningful macroeconomic upside in the context of the ongoing US-Iran conflict. The Fund Manager will focus on lease renewals, prudent capital recycling, and sustaining distributions while monitoring the evolving geopolitical environment closely on behalf of all unit holders.

Ilodianya Patrick FRC/2013/ICAN/00000002177

Director

13 March 2026

Gbenro Yemi

Director

13 March2026

-Page12-

The Trustee hereby presents their Report on the affairs of UH Real Estate Investment Trust (The Fund) together with the Auditor's Report and Financial Statements for the year ended 31st December 2025.

The Fund opened for subscription on 19th August 2008 and commenced investment activities on 3rd February 2009. Registered as a Close-ended Investment Scheme and Real Estate Investment Trust (REIT) in Nigeria by the Securities and Exchange Commission ("SEC") under the Investment and Securities Act 2007, it is governed by a Trust Deed with United Capital Trustees Limited as Trustee to the Fund. The Fund is established to provide Investors with long-term capital appreciation and to optimize investors' returns by investing in a strategic mix of Real Estate properties and money market instruments as specified in Clause 3.1 of the Trust Deed and as spelt out in the Prospectus. The Fund is listed on the Floor of the Nigerian Stock Exchange and in line with international best practices. Its assets are totally segregated from the assets of the Manager.

The performance of the Fund as a function of its Net Asset Value is as follows:

The Net Asset Value increased from N10,687,160,000.00 as at 31 December 2024 to N27,946,904,000.00 as at 31 December 2025.

During the period under review, Profit before tax generated by the Fund increased by 56.21% when compared to 2024 which shows strong financial growth.

Compliance:

Asset Allocation Requirement

Compliance with the Asset Allocation requirement of the Fund (90% in Real Estate related investment and 10% in Liquid Asset investments). As at 31st December, 2025 the portfolio had 94.52% in Real Estate Related Investments, while 5.48% was invested in Liquid Assets.

Parties to the Fund:

Fund Manager Trustee Registrar Auditors Custodian

SFS Capital Nigeria Limited United Capital Trustees Limited

Greenwich Registrars & Data Solutions Baker Tilly Nigeria

UBA Global Investor Services

BY ORDER OF THE TRUSTEE

United Capital Trustees Limited 3'd& 4'hFloor, Afriland Towers 97/105, Broad Street

Lagos

13 March 2026

xicauf ‹sy»N za0@s

Michael Abiodun Thomas FRC/2023/PRO/DIR/003/313031

Managing Director

CERTIFICATION OF THE ACCOUNTS

BY THE DIRECTORS OF THE FUND MANAGER

We hereby certify the accounts and state that neither the Manager nor any other person acting on its behalf has: -

• Transferred units to another person for sale, resale or subsequent transfer to the manager for sale or resale:

• Acquired or disposed of investments for account of the Fund otherwise than through a process duly approved by the investment committee;

• Acquired units for aprice higher than the prevailing bid price; or

• Disposed of units for a price lower than the prevailing offer price.

  
  
  
  
  

  Ilodianya Patrick FRC/2013/ICAN/00000002177

  Director

  13 March 2026

  Gbenro Yemi FRC/2014/CIB/00000002190

  Director

  13 March 2026

  REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF UH REAL ESTATE INVESTMENT TRUST Report on the Audit of the Financial Statements

  To the directors of UH Real Estates Investment Trust (REIT) We have audited the financial statements of UH Real Estates Investment Trust (REIT) (the company) set out on Pages 11 to 40 which comprise the statement of financial position as at 31 December 2025, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

  Opinion

  In our opinion, the financial statements present fairly, in all material respects, the financial position of UH Real Estates Investment Trust (REIT) as at 31 December 2025, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act, 2020.

  Basis for opinion

  We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the financial statements section of our report. We are independent of the company in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (Parts 1 and 3) (IESBA Code) and other independence requirements applicable to performing audits of financial statements in Nigeria. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and in accordance with other ethical requirements applicable to performing audits in Nigeria. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

  Other information

  The directors are responsible for the other information. The other information comprises the information included in the document titled UH Real Estates Investment Trust (REIT) financial statements for the year ended 31 December 2025 which includes the Directors' Report as required by the Companies and Allied Matters Act 2020 and the Detailed Income Statement, which we obtained prior to the date of this report. The other information does not include the financial statements and our auditor's report thereon.

  Our opinion on the financial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

  In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

  Responsibilities of the directors for the Financial Statements

  The directors are responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and the requirements of the Companies and Allied Matters Act 2020, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

  In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

  Auditor's responsibilities for the audit of the Financial Statements

  Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

  As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

  -Page17-

  • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on other legal and regulatory requirements

The Companies and Allied Matters Act 2020 requires that in carrying out our audit, we consider and report to you on the following matters. We confirm that: -

i) we have obtained all the information and explanations which to the best of our knowledge and belief wei'e necessary for the purpose of our audit;

accounting records have been kept by the Company; and

1. the Company's statements of finalacial position and profit or loss and other conspi elaensive income are in agreement with the accounting records

   
   
   

   Lagos, Nigeria 13 March 2026

   Oluivole 0. Ogundeji FRC/2013/PRO/ICAN/004/00000002825

   
   
   

   / r: Baker Tilly Nigeria (Chartered Accountants) FRC/2024/COY/096262

   -Page18-

   UH REAL ESTATE INVESTMENT TRUST STATEMENT OF COMPREHENSIVE INCOME (TOTAL RETURN) FOR THE YEAR ENDED 31 DECEMBER 2025

   	Note	2025 N'000	2024 N'000
   Investment income	3	1,392,884	1,277,776
   Deduct:
   Operating expenses	4	(246,081)	(220,503)
   Net realized income before taxation		1,146,803	1,057,273
   Taxation	5	(25)	(12,139)
   Net realized income after taxation		1,146,779	1,045,134
   Unrealized Gains Other Income	3.2	625,392	-
   Revaluation Gain on Investment Properties	11	16,445,556	-
   Total Comprehensive Income		18,217,751	1,045,134
   Net increase in unit holder's fund from investment activities		18,217,726	1,045,134
   		========	=======
   Earnings per unit basic(N) Distributable earnings per unit(N)		96.84 ==== 6.10 ====	5.56 ==== 5.56 ====

   The notes and accounting policies on pages 23 to 41 form an integral part of these financial statements

   -Page 19-

   UH REAL ESTATE INVESTMENT TRUST STATEMENT OF FINANCIAL POSITION

   AS AT 31 DECEMBER 2025

   Assets: Current Assets Cash and cash equivalents	Note	2025 &'000 2,417,072		2024 &'000 2,088,470
   Financial assets at amortized cost	7	392,675		405,210
   Other assets	8	5,528		5,658
   Trade and other receivables	9	62,105		103,452
   Plant & equipment	10	58,602		56,219
   Total current assets		2,935,982		2,659,009
   Non-Current Assets Investment properties	11	26,214,974		9,968,727
   Total assels		29,150,956		12,627,736
   Liabilities: Current Liabilities Rent received in advance	12	439,463		359,084
   Accruals and other payables	13	761,254		1,573,157
   Total current liabilities		1,200,717		1,932,241
   Non-Current Liabilities- Rent received in advance	12	3,335		8,335
   Total liabilities		(1,204,052)		(1,940,576)
   Net assets		27,946,904		10,687,160
   Equity and reserves Unit holders' equity	14	9,406,353		9,406,353
   Retained earnings	15	18,540,551		1,280,807
   Unit holders' fund		27,946,904		10,687,160

   
   
   

   The financialtatementJ we approved by the Board of Directors on 25 March gsigned on its behalf by:

   
   
   

   Patrick Ilodianya Managing Director

   FRC/2013/ICAN/00000002177

   emi Gbenro Dimeji Sonowo

   Director Executive Director FRC/2014/CIB/00000002190 FRC/2013/ICAN/00000002089

   The notes and accounting policies on pages 23 to 41 form an integral part of these financial statements

   UH REAL ESTATE INVESTMENT TRUST STATEMENT OF CHANGES IN EQUITY (MOVEMENTS IN UNIT HOLDERS' FUND) FOR THE YEAR ENDED 31 DECEMBER 2025

   	Unit Equity	General reserve	Total
   	N'000	N'000	N'000
   1 January 2025	9,406,353	1,280,807	10,687,160
   Dividend	-	(957,982)	(957,982)
   Transfer from income statement:
   Retained earnings (non-distributable)	-	17,070,948	17,070,948
   Retained earnings (Distributable)	-	1,146,779	1,146,779
   31 December 2025	9,406,353 =======	18,540,551 ========	27,946,904 ========
   1 January 2024	9,406,353	828,273	10,234,626
   Dividend Transfer from income statement:	-	(592,600)	(592,600)
   Retained earnings (non-distributable)	-	-	-
   Retained earnings (Distributable)	-	1,045,134	1,045,134
   31 December 2024	9,406,353 =======	1,280,807 =======	10,687,160 ========

   The notes and accounting policies on pages 23 to 41 form an integral part of these financial statements

   UH REAL ESTATE INVESTMENT TRUST PORTFOLIO STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

   	Market	2025 Percentage	Market	2024 Percentage of
   	value N'000	of portfolio %	N'000	net assets %
   Real estate	25,724,974	92.75	9,278,727	84.17
   Real estate related	490,000	1.77	690,000	6.26
   	26,214,974	94.52	9,968,727	90.43
   Money market investments
   Cash and cash equivalents	2,417,072		2,088,470
   Financial assets held to maturity	392,675		405,210
   	2,809,747		2,493,680
   Unclaimed dividend	(258,192)		(488,804)
   Proposed dividend	(1,032,123)		(950,042)
   	1,519,432	5.48	1,054,834	9.5
   Total value of portfolio	27,734,406 ========	100 ====	11,023,561 ========	100 ===

   The Fund is expected to invest a minimum of 90% of the Fund's total assets in Real Estates and Real Estates related assets, while the remaining 10% should be invested in money market.

   As at 31 December 2025, the Fund's investment in Real Estates and real estate related was 94.52% of

   the Fund's total assets.

   UH REAL ESTATE INVESTMENT TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025

   	Note	2025 N'000		2024 N'000
   Operating profit before working capital changes	16.1	1,795,752		1,080,647
   Working capital changes	16.ii	(695,046)		198,421
   Gain on disposal of Investment Properties		(307,107)		(329,643)
   Income tax paid		(25)		(12,139)
   Net cash flow from operating activities		793,574		937,286
   Cash flow from investing activities: Proceeds from sales of investment properties		650,000		590,000
   Purchase of investment in properties		(143,585)		(190,000)
   Purchases of PPE		(25,940)		(28,733)
   Investment in money market		12,535		9,608
   Net cash flow from investing activities		493,010		380,875
   Financing activities
   Dividend paid		(957,982)		(592,600)
   Net increase in cash and cash equivalents		328,602		725,561
   Cash and equivalents brought forward		2,088,470		1,362,909
   Cash and cash equivalents at the end of the year		2,417,072 =======		2,088,470 =======

   The notes and accounting policies on pages 23 to 41 form an integral part of these financial statements

   UH REAL ESTATE INVESTMENT TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
   1. General information

      Reporting entity

      UH Real Estate investment Trust 'UHREITS' (formerly Union Homes Real Estate Investment Trust) was established on August 19, 2008 as a Unit Trust Scheme, registered and listed on the floor of the Nigerian Stock Exchange on 2 July, 2010. The Fund is managed by SFS Capital Nigeria Limited which is located at Plot 287, Ajose Adeogun Street, Victoria Island, Lagos.

      The UH REIT is an actively managed, close ended unit Trust scheme whose primary objective is to achieve long term capital appreciation of its assets by investing a minimum of 90% of the assets in Real Estate and Real Estate related investments. The Trust Deed provides for a maximum of 10% of the Fund's total assets to be invested in quality money market instruments to ensure liquidity.

      The Fund is established to provide an opportunity for a large number of investors to share the ownership of a group of real estate assets through the medium of a Fund that buys, develops, manages and sells real estate assets.

   2. Accounting policies

      The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

      1. Basis of preparation

         Statement of compliance

         The financial statements have been prepared in compliance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board (IASB) and with the interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC) as adopted by the Federal Republic of Nigeria.

         Functional and presentation currency

         The financial statements are presented in Nigeria Naira (N) which is the Fund's functional and

         presentation currency.

         Use of estimates and judgments

         The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and the future periods if the revision affects both current and future periods.

         Basis of measurement

         The financial statements have been prepared on the historical cost basis except for certain financial instruments measured at fair value through profit or loss.

      2. Standards and interpretations issued/amended but not yet effective

         The standards listed below have been issued or amended by the IASB but are yet to become effective for annual periods beginning on or after 1 January 2024. The Company has not applied the following new or amended standards in preparing these financial statements as it plans to adopt these standards at their respective effective dates. Insights on these new standards/amendments are provided below.

         IAS 21 -Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) 1 January 2025

         The Company is currently assessing the impact of these new accounting standards and amendments. The Company does not believe that the amendments to IAS 1 will have a significant impact on the classification of its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity instrument and therefore, does not affect the classification of its convertible debt as a non-current liability. The Company does not expect any other standards issued by the IASB, but are yet to be effective, to have a material impact on the Company.

      3. Summary of significant accounting policies

   The principal accounting policies applied in the preparation of these financial statements are as set out below. These policies have been applied consistently to all years presented, unless otherwise stated.

   1. Cash and cash equivalents

      Cash and cash equivalents include cash in hand and at bank, call deposits and short term highly liquid financial assets (including money market funds) with original maturities of less than or of three months, which are subject to insignificant risk of changes in their fair value, and are used by the Fund in the management of its short-term commitments.

   2. Investment properties

      Investment properties comprise of completed property and property under construction or redevelopment held to earn rental income or for capital appreciation or both or for disposal.

      Investment property is measured initially at cost including transaction costs. Transaction costs include professional fees for legal services and other commissions to bring the property to the condition necessary for it to be capable of operating. The carrying amount also includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria is met.

      Subsequent to initial recognition, investment properties are stated at cost less impairment losses. The investment properties are valued periodically and the amount on valuation stated as a way of

      note in the financial statements. Gains or losses arising from changes in the value are not recognized in the books until such investment properties are disposed of.

      Investment property is de-recognized when it has been disposed of or permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of investment property is recognized in the income statement in the year of retirement or disposal.

      Gains or losses on the disposal of investment property is determined as the difference between net disposal proceeds and the carrying value of the asset in the previous full period financial statements.

   3. Property, Plant and Equipment

   The Fund does not hold any property, plant and equipment at present as it is against the position of the Securities and Exchange Commission (SEC). All properties, plant and equipment used for managing the Fund are owned by the Fund manager who is paid management fees. However, items of plant and machinery relating to investment property are accounted for separately and depreciated over its useful life span.

2. Financial instruments
   1. Recognition and measurement

      Financial assets and financial liabilities are recognized in the statement of financial position when the company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognized at their fair value plus, in the case of all financial assets not carried at fair value through profit or loss, transaction costs that are directly attributable to their acquisition. Purchases and sales of financial instruments are measured on a trade-date basis.

      Financial liabilities and equity instruments, issued by the company, are classified according to the substance of the contractual arrangements entered into and the definition of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

      Financial assets are derecognized when and only when:

      • The contractual rights to the cash flows from the financial assets expire; or

      • The company transfers the financial asset, including substantially all the risks and rewards of ownership of the asset.

        A financial liability is derecognized when and only when the liability is extinguished, that is, when the obligation specified in the contract is discharged, cancelled or has expired. The difference between the carrying amount of a financial liability (or part thereof) extinguished or transferred to another party and consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

        Investments made by the company which are classified as either held at fair value through profit or loss or available-for-sale, are measured at subsequent reporting dates at fair value.

        Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of quoted investments and unit trusts in active markets are based on current market prices. Since actual market prices are available in determining fair values, no significant estimates or valuation models are applied in determining the fair value of quoted financial instruments.

   2. Fair value hierarchy

      Fair values are determined according to the following hierarchy based on the requirements in

      IFRS 7 'Financial Instruments: Disclosures':

      • Level 1: quoted market prices: financial assets and liabilities with quoted prices for identical instruments in active markets.

      • Level 2: valuation techniques using observable inputs: quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial assets and liabilities valued using models where all significant inputs are observable.

      • Level 3: valuation techniques using significant unobservable inputs: financial assets and liabilities valued using valuation techniques where one or more significant inputs are unobservable.

      The best evidence of fair value is a quoted price in an active market. In the event that the market for a financial asset or liability is not active, a valuation technique is used.

   3. De-recognition of financial instruments

      Financial assets are derecognized when the contractual right to receive cash flows from the investments have expired or on trade date when they have been transferred and the Company has also transferred substantially all risks and rewards of ownership. Non-cash financial assets pledged, where the counterparty has the right to sell or re-pledge the assets to a third party, are classified as pledged assets.

      Financial liabilities are derecognized when they are extinguished, that is when the obligation is discharged, cancelled or expires.

   4. Financial assets

      Financial assets are classified into the following categories: financial assets at fair value through profit or loss; loans and receivables, held-to-maturity and available-for-sale financial assets. Management determines the classification of financial assets at initial recognition. This classification depends on the nature and purpose of the financial asset.

      1. Financial assets at fair value through profit or loss

         This category has two components: those held for trading, and those designated at fair value through profit or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of generating a profit from short-term fluctuations in price or dealer's margin, or a security is included in a portfolio in which a pattern of short-term profit taking exists or if so designated by management at inception as held at fair value through profit or loss.

         Financial assets designated at fair value through profit or loss at inception are those that are:

         • Held to match liabilities that are linked to changes in fair value of these assets. The designation of these assets at fair value through profit or loss eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as 'an accounting mismatch') that would otherwise arise from measuring assets or liabilities or recognising gains and losses on them on different bases; or

         • Managed and whose performance is evaluated on a fair value basis. Information about these financial assets is provided internally on a fair value basis to the company's key management personnel.

           The company's investment strategy is to invest in equity and debt securities, and to evaluate them with reference to their fair values. Assets that are part of these portfolios are designated upon initial recognition at fair value through profit or loss.

      2. Loans and receivables

         Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These arise when the company provides money, goods or services directly to a debtor with no intention of trading the receivable. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less impairment losses. The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is measured on initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount recognized and the maturity amount, minus any reductions for impairment of financial assets. The carrying amount represents its fair value.

      3. Available-for-sale

         Available-for-sale instruments are those intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices. Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value on the statement of financial position.

      4. Held-to-maturity

      Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that management has both the positive intent and ability to hold to maturity. Were the company to sell more than an insignificant amount of held-to-maturity investments, the entire category would be tainted and reclassified as available-for-sale assets with the difference between amortised cost and fair value being accounted for in other comprehensive income (OCI). Held-to-maturity investments are carried at amortised cost, using the effective interest method, less any impairment losses.

   5. Financial liabilities

      Financial liabilities are recognized initially at fair value, generally being their issue proceeds net of transaction costs incurred. Financial liabilities are subsequently stated at amortised cost and interest is recognized over the period of the borrowing using the effective interest method.

      The company classifies certain liabilities at fair value through profit or loss, mainly to match the accounting classification of assets with similar risks. Such liabilities are accounted for at fair value with changes in fair value recognized in profit or loss.

   6. Gains and losses

      Gains and losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in profit or loss in the period in which they arise. Gains and losses arising from changes in the fair value of available-for-sale financial assets are recognized in other comprehensive income, until the financial asset is derecognized or impaired at which time the cumulative gain or loss previously recognized in other comprehensive income is recognized in profit or loss. Interest income, calculated using the effective interest method, is recognized in profit or loss except for short term receivables where the recognition of interest would be immaterial. Dividends on available-for-sale equity instruments are recognized in the profit or loss when the company's right to receive payment is established.

   7. Effective interest method

      The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

   8. Offsetting of financial instruments

      Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or, realise the asset and settle the liability simultaneously.

      Impairment of financial assets
      • Assets carried at amortised cost

        At each reporting date, the company assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are recognized if, and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

        The company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the company determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it then includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.

        Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in the collective assessment of impairment. If there is objective evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is measured as the difference between the assets' carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate.

        The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in profit or loss. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

        When a loan is uncollectible, it is written off against the related provision for loan impairment. Such loans are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off decrease the amount of the provision for loan impairment in profit or loss.

        If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtor's credit rating), the previously recognized impairment loss is reversed by adjusting the allowance account. The reversal shall not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognized at the date the impairment is reversed. The amount of the reversal is recognized in profit or loss.

      • Assets carried at fair value

At each reporting date, the company assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered in determining whether the assets are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss - is removed from comprehensive income and recognized in profit or loss.

Impairment losses recognized in profit or loss on equity instruments classified as available-for-sale are not subsequently reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive income. However, if in a subsequent period the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed through profit or loss.

1. Provisions

   A provision is recognized only if, as a result of a past event, the Fund has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. The provision is measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

   Provisions are not recognized for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole.

   Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.

2. Deferred income - rent received in advance

   Deferred income represents income collected but not earned as at the company's year end. This is primarily composed of rent received in advance on leased properties. Deferred income is recorded for all income related to the trade of the business in the next financial year.

3. Borrowings - mortgage loan

   Borrowings, inclusive of transaction costs, are recognized initially at fair value. Borrowings are subsequently stated at amortised cost using the effective interest rate method; any difference between proceeds and the redemption value is recognized in the statement of other comprehensive income over the period of the borrowing using the effective interest rate method.

   Borrowings are classified as current and non-current liabilities depending on the repayment period of the borrowing.

4. Related party transactions

Related party transactions are disclosed separately as to the type of relationship that exists and the outstanding balances necessary to understand their effects on the financial position and the mode of settlement.

ix Taxes

The Fund is not subjected to income and education taxes on its income by the concession given to the Fund. This concession was given and approved by the Federal Ministry of Finance in accordance with international best practice. This concession covers:

• Exemption from Companies Income Tax, although WHT will be imposed on dividend distribution to investors; any distribution below the prescribed threshold (i.e. 90%) will disqualify the REIT from tax exemption.

• Exemption from stamp duties to reduce transaction costs; and

• Exemption from Capital Gains Tax on the ground that income arising from sales or disposal will be ploughed back for the purchase of additional properties or distributed as dividend.

1. Unit holders equities and reserves Unit issue costs

   Incremental costs directly attributable to the issue of new units are shown in equity as a deduction.

   Distributions

   Distributions to the Fund's unit holders are recognized in equity in the period in which they are made or, if earlier, approved by the Fund's unit holders. Distributions for the year that are declared after the date of the statement of financial position are dealt with in the subsequent events note.

2. Foreign currency translation Transactions and balances

   Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

   Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported as part of the fair value gain or loss. Translation differences on non-monetary items, such as equities classified as available-for-sale financial assets, are included in the fair value reserve in equity.

3. Revenue recognition

   Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Fund and the revenue can be reliably measured. Revenue of the Fund comprises of:

   Rental income:

   Rental income receivable from operating leases, less the Fund's initial direct costs of entering into the leases, is recognized on a straight-line basis over the term of the lease. Amounts received from tenants to terminate leases or to compensate for dilapidations are recognized in the income statement when they arise.

   Services rendered/service charge and expenses recoverable from tenants:

   Revenue associated with the rendering of services is recognized with reference to the stage of completion of the transaction at the end of the accounting period. Income arising from expenses recharged to tenants is recognized in the period in which the expense can be contractually recovered.

   Sale of completed property and Sale of property under development:

   Income is recognized when the significant risks and returns have been transferred to the buyer, which is normally on unconditional exchange of contracts. For conditional exchanges, sales will be recognized only when all the significant conditions are satisfied.

   Increase from money market investments

   The Fund receives interest on money market instruments and this is recognized in the accounts when the amount is paid to the fund bank accounts. The Fund main investments in treasury bills and banks fixed deposit.

4. Borrowing costs

   Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Fund incurs in connection with the borrowing of funds.

5. Expenditure recognition

Expenditures are recognized as they accrue during the course of the year. Analysis of expenses recognized in the income statement is presented as classification based on either their nature or their function within the Fund whichever provides information that is reliable and more relevant.

This represents the excess of the amount earned on the swap transaction over the cost during the year. As at the time of this report, the shares involved in the swap deal had not been re-purchased but the value has been reclassified and taken to other income.

This amount represents amount deducted from interest received from call deposits with banks which is deemed to be the final tax paid by the Fund.

Cash at bank earns interest at floating rates based on daily bank deposit rate. The short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Fund, and earn interest at the respective short-term deposit rates.

maturity periods of between one day and twelve months.

The investment properties were valued by UBOSI ELEH + CO (Estate Surveyors + Valuers) in December 2025. The valuation was determined using the market value and rental value taking into account locations, prevailing market rents and occupancy levels.

The revaluation resulted in a fair value gain of ₦16.4 billion. This is detailed as follows: