The SFS Real Estate Investment Trust (SFS REIT) has announced 70 per cent increase in its net income for the 2023 financial year, alongside a proposed dividend of N14.50 per share, which is the highest in its 17-year history.
This announcement was made by Managing Director and CEO of SFS Capital Limited, Mr. Patrick Ilodianya, who oversees the SFS REIT, formerly known as Skye Shelter Fund.
"Between 2022 and 2023, SFS REIT experienced a remarkable 70 per cent growth in net income. Concurrently, dividend payouts also surged by 71.60 per cent," Ilodianya stated.
He emphasised that despite facing challenging market conditions, SFS REIT has consistently delivered robust performance since its inception.
Ilodianya highlighted that the proposed N14.50 per share dividend would mark a historic high for the fund.
According to him, "an investor who purchased SFS REIT shares at N77 on January 1, 2023, the current share price of N101.35 represents a capital appreciation of 31.62 per cent.
"The dividend payout translates to an 18.83% return on the initial share price, culminating in an estimated total return of over 50% annually."
Ilodianya stressed that the current dividend payout is not only unprecedented but also a sign of continued strong performance, with no decline anticipated in the near future. "We foresee SFS REIT continuing to deliver higher dividends moving forward," he added.
He also noted that the SFS REIT has maintained an "A" credit rating from an SEC-approved rating agency for over a decade, with aspirations to achieve an "AA" rating in future evaluations, reflecting the fund's significantly enhanced performance.
The SFS REIT strategically invests in multiple units within organised and efficiently managed residential estates along the expanding Lekki corridor. Notable investments include Milverton Court Estate, Victoria Crest Estate, Sapphire Gardens Estate, and Cromwell Court Estate.
Ilodianya reaffirmed the SFS Capital's commitment to real estate investment as a dependable avenue. "Real estate returns remain stable, adjust to inflation, and consistently appreciate under skilled fund managers," he said.
This announcement underscored the SFS REIT's impressive growth trajectory and its commitment to delivering value to its shareholders.
