UPDC Targets Better Cash Flow, Dividends Payment To Shareholders

BY CHINYERE OBIORA, LAGOS – To ensure maximum value and returns on investment for clients’ properties and estates, the Board and Management of UACN Property Development Company (UPDC) Plc, has set in motion plans to expand its asset management subsidiary, improve its cash flow and ultimately commence dividends payment to its shareholders.

The company disclosed this to capital market stakeholders during its Facts behind the Figures platform of Nigerian Exchange (NGX).

In his presentation, Chief Executive Officer of UPDC, Odunayo Ojo, said with its restructuring plans concluded in the first half of 2021, the UPDC management is focusing on key strategic initiatives that include Property Development; Development management, and other Real Estate Advisory services; Disposal of low yielding investment properties and existing Inventory; Sale of Festival Hotel at Festac; and Asset Management.

Explaining that UPDC has established a development track record commission of diverse assets mix in the retail, commercial, residential, and hospitality sectors, Ojo said the company distributed its stakes in UPDC REIT to shareholders in 2020, giving UPDC shareholders direct stake in UPDC REIT Plc.

Also presenting the company’s financials and future plans, UPDC’s Chief Financial Officer, Folakemi Fadahunsi, said the revenue decline was due to its focus on disposing of the old inventory to unlock funding for new developments.

“UPDC’s half-year performance reflects the anticipated impact of the Company’s internal restructuring on performance. We were able to record a significant reduction in its finance cost for the first half of the year and the full effect of our management’s refinancing initiatives is expected to be fully reflected in the full-year result following the success of our bond repayment in April 2021.

“We will try to improve cash flow and ultimately start paying dividends to shareholders”, She said.

Earlier in his remarks, the Divisional Head, Listings Business, NGX, Olumide Bolumole, said the market is driven by timely, relevant, and accurate information, adding that interactions with the market are vital for transparency, price discovery, and overall performance of securities.

While commending UPDC Plc on their impressive performance, Bolumole expressed delight at the significant milestone it has achieved with the successful conclusion of the N16 billion rights issue last year, proceeds of which were used to strengthen the capital base and position the company for growth.

“At the exchange, we remain committed to helping issuers derive great value from their interaction with the market. By positioning ourselves as the African Exchange of choice, we continue to implement policies aimed at strengthening the corporate governance of our listed companies and providing products that are aligned to investors’ requirements in a fair and orderly market”, Bolumole said