UPDC REAL ESTATE INVESTMENT TRUST
ANNUAL REPORTS FOR THE PERIOD ENDED 31 DECEMBER 2022
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UPDC REAL ESTATE INVESTMENT TRUST
ANNUAL REPORTS FOR THE PERIOD ENDED 31 DECEMBER 2022
CONTENTS
Parties to the Trust
Joint Trustees' report
Fund Manager's report
Statement of the Fund Manager's responsibilities
Auditors' report
Statement of comprehensive Income
Statement of financial position
Statement of changes in units and reserves
Statement of cash flows
Notes to the financial statements
Other financial information:
- Value added statement
- Five year financial summary
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UPDC REAL ESTATE INVESTMENT TRUST
ANNUAL REPORTS FOR THE PERIOD ENDED 31 DECEMBER 2022
PARTIES TO THE TRUST
Trustees
United Capital Trustees Limited
UBA House (12th Floor)
57 Marina Lagos
Telephone: (01) 2807032
Trustees
FBNQuest Trustees Limited
10 Keffi Road
Off Awolowo Road, S.W. Ikoyi
Lagos
Telephone: (01) 4622673
Fund Manager
Stanbic IBTC Asset Management Limited
The Wealth House
Plot 1678 Olakunle Bakare Close
Off Sanusi Fafunwa Street
Victoria Island
Lagos
Tel: 234-1-2805595
E-Mail: mutualfunds@stanbicibtc.com
Website: www.stanbicibtcassetmanagement.com
Property Manager
UACN Property Development Company Plc (UPDC) REIT Business Manager
3rd Floor
1/5 Odunlami Street
Lagos Island, Lagos. Telephone: (01) 2702201
Registrars
First Registrars Nigeria Limited
Plot 2 Abebe Village Road,
Iganmu
Lagos
Telephone: (01) 773086
Custodian
UBA Plc (Global Investor Services Division)
UBA House
57 Marina Lagos
Telephone: (01) 2808349
Banker
United Bank for Africa Plc
Head Office Branch
UBA House
57 Marina Lagos
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Telephone: (01) 2808349
Auditor
PricewaterhouseCoopers
(Chartered Accountants)
Landmark Towers,
5B Water Corporation Drive
Victoria Island
Lagos
Telephone: (01) 2711700
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UPDC REAL ESTATE INVESTMENT TRUST
ANNUAL REPORTS FOR THE PERIOD ENDED 31 DECEMBER 2022
Joint Trustees' Report
The Trustees present their Report on the affairs of the UPDC Real Estate Investment Trust, together with the Financial Statements for the year ended 31st December, 2022.
Principal Activity:
The principal activity of the UPDC Real Estate Investment Trust (the "Trust") is to pool investment in a diversified portfolioof income-generating Real Estate in Nigeria with high growth potential in accordance with the Trustee Investments Act, the Investments and Securities Act (2007), the Securities and Exchange Commission's Rules and Regulations and the Trust Deed thereto ("the Applicable Regulations").
Results:
The results for the year ended 31st December, 2022 are set out on pages 13 and 14
Directors:
The Directors of the Fund Manager who served during the period under review were:
Dr. Demola Sogunle | Chairman |
Mr. Oladele Sotubo | Chief Executive |
Mr. Shuaib Audu | Executive Director |
Mrs. Busola Jejelowo | Executive Director |
Mrs. Wunmi Ehis-Uzenabor | Executive Director |
Prof. Olayinka David-West | Independent Non-Executive Director |
Mrs. Ifeoma Esiri | Non Executive Director |
Mrs. Funke Amobi | Non Executive Director |
Mrs. Bridget Oyefeso-Odusami | Non Executive Director |
Mr. Babatunde Majiyagbe | Non Executive Director |
Mr. Olumide Oyetan | Non Executive Director |
Directors' and related parties' interest in the units of the REIT:
None of the directors of the Fund Manager, FBNQuest Trustees Limited and United Capital Trustees Limited has any direct beneficial interest in the units of the REIT.
Responsibilities of the Fund Manager:
The Investments and Securities Act, 2007 requires the Fund Manager to keep proper books of account and prepare annual financial statements, which give a true and fair view of the state of affairs of the Real Estate Investment Trust during the period covered by the financial statements.The Fund Manager is responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any point in time, the financial position of the REIT and enable the Fund Manager to ensure that the financial statements comply with the applicable regulations.
The Fund Manager is also responsible for maintaining adequate financial resources to meet its commitments and to manage the risks to which the Fund is exposed.
Responsibilities of the Trustee:
The responsibilities of the Trustee as provided by the Trust Deed and other Supplemental thereto, the Securities and Exchange Commission's Rules and Regulations made pursuant to the Investments and Securities Act, 2007 are as stated below:
- monitoring of the activities of the Fund Manager and the custodian on behalf of and in the interest of the Unitholders;
- monitoring the register of Unitholders or contributors;
- ascertaining the Fund Manager's compliance with the Applicable Regulations;
▪ ascertaining that the monthly and other periodic returns/reports relating to the Fund are sent by the Fund Manager to the Commission;
- exercising any right of voting conferred on it as the registered holder of any investment and/or forward to the Fund Manager within a ...reasonable time all notices of meetings, reports, circulars, proxy solicitations and any other document of a like nature for
- ensuring that fees and expenses of the fund is within the prescribed limits; and
- acting at all times in the interest and for the benefit of Unitholders of the scheme.
Administration of the REIT:
During the period under review, the allocation to liquid assets exceeded the maximum 10% limit as provided in the Trust Deed. This was as a result of the decline in the valuation of the Real Estate assets which impacted on the percentage holdings of the liquid assets. Apart from this, the Fund was administered in accordance with the applicable regulations, taking into cognisance prevailing market conditions as well as preserving and minimising possible losses to unit holders' funds.
Charitable donations:
The REIT did not make any charitable donations during the period.
Auditors
PricewaterhouseCoopers, the REIT's Auditors, have indicated their willingness to continue in office.
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