By Adedapo Adesanya
UBN Property Company Plc, one of the subsidiaries of Union Bank of Nigeria Plc, has proposed to pay a five kobo dividend to its shareholders despite suffering a 39 percent slump in profit in the 2019 financial year.
The property investment arm of the financial institution said the cash reward will be paid to investors whose names appear on the register of members as at the close of business on Thursday, June 11.
The company also noted that its closure of register will happen from Monday, June 15, to Friday, June 19, 2020, inclusive of both days.
The payment will, however, be subjected to approval of the company’s shareholders at its Annual General Meeting (AGM) scheduled for Tuesday, June 23, 2020.
The AGM will hold at 9th Floor, Stallion Plaza, 36 Marina, Lagos by 11: 00 a.m.
The 2019 fiscal yer saw the company’s profit going down to N559.6 million from N910.4 million in 2018 on the back of reduced investment income and the loss on fair valuation of investment property.
This happened despite its estate agency and valuation service fees growing by 250 percent from N0.8 million to N2.9 million. The company’s property management fees also grew by 6 percent from N44.3 million to N46.9 million in 2019, but rental income was down by 20 percent from N86.7 million to N69.0 million in 2019.
Investment income was also down by 7 percent to N619.1 million from N668.1 million in 2018 as a result of the low-interest yield environment on treasury bills, while other income was down by 53 percent from N181.2 million to N85.8 million.
Operating expenses increased by 6 percent to N118.6 million from N112.4 million in 2018, with personnel expenses reducing by 15 percent from N144.2 million to N121.9 million in 2019.
Total assets stood at N9.4 billion as at December 31, 2019 compared to N9.7 billion recorded in 2018. Shareholders’ funds also reduced by 2 percent to N8.5 billion in 2019 from N8.7 billion in 2018.
Looking ahead, the company said due to the global economy which is expected to slow down considerably due to the COVID-19 pandemic, it is expecting a tougher operating environment in Nigeria with GDP growth likely in the negative territory for 2020.
Commenting on this, UBN Property Chief Executive Officer, Mr Oluwatosin Osikoya, said: “Despite the dimmer outlook, we aim to position the company to take advantage of government’s new policy direction and purchase new landed properties where we see opportunities while strongly pursuing disciplined development of these properties for residential and commercial purposes towards maximising value for shareholders.
“Our growth ambitions remain unchanged as we aim to remain a key player in the property industry in 2020.
“I would like to appreciate our shareholders for their continued support over the years as we look forward to a productive and profitable 2020. We also appreciate the commitment of our Board of Directors and we count on their continued support in 2020.” Mr Osikoya said.
