- forecast 350 Kobo DPU in 2011 FYE

Proshare NI

August 05, 2008 at 16:28 GMT

This is coming on the heels of the company’s Completion Board Meeting (CBM) held today in Lagos Nigeria.

In an Abridged Prospectus date August 05, 2008 and made available to Proshare NI, the  Mortgage Company is raising the fund by way of offer for subscription and are authorised to receive 970,873,787 million units of N50.00 each at N51.50 Kobo per unit in the Union Homes REIT.

Forecast offer statistics as extracted from the Reporting Accountant’s report shows that Gross Earning is expected to grow from N3.324 billion in year one to N6.770 billion in year three; indicating a growth of  104 percent in the forecast period.

While Earnings per Unit (EPU) is also expected to increase from 166 Kobo in year one to 389 Kobo in year three representing an increase of 134 percent in the projected period.

Also Distributions per Unit (DPU) is expected to rise from 150 Kobo in year one to 350 Kobo in year three indicating a rise of 133 percent in the forecast period.

In the same vein, from the Profit Forecast for each years ending June 2009, 2010 and 2011 shows that income is expected to increase from N1.858 billion in year 2009 to N2.877 billion in year 2011 showing an increase of 55 percent in the forecast period

Earnings before Tax (EBT) is also expected to grow from N2.445 billion in year 2009 to N5.725 billion in year 2011 indicating a growth of 134 percent in the period under projection.

However, forecast for each of the years have been prepared on the assumption that the Trust will continue to operate on a basis consistent with the accounting policies to be prescribed and adopted by it.

The Abridged Prospectus affirms that the fund will be quoted on the Nigerian Stock Exchange (NSE). Union Homes REIT would invest a minimum of 90 percent of its assets in real estate and a maximum of 10 percent in quality real estate and mortgage assets.

The minimum subscription for the offer is 1,000 units and multiplies of 100 thereafter.

Financial Adviser/Lead Issuing House is Goldman Assets Management Limited; Joint Issuing House is Union Capital Markets Limited.

The Union Homes REIT offer opens on August 11 and Closes on September 17, 2008.