UPDC REAL ESTATE INVESTMENT TRUST : AUDITED FINANCIAL STATEMENT FOR 2021

UPDC REAL ESTATE INVESTMENT TRUST

FINANCIAL STATEMENTS

FOR YEAR ENDED 31 DECEMBER 2021

#Classified as Confidential

UPDC REAL ESTATE INVESTMENT TRUST FINANCIAL STATEMENTS

FOR YEAR ENDED 31 DECEMBER 2021

CONTENTS

Parties to the Trust

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 unit and reserves

Statement of cash flows

Notes to the financial statements

Other financial information:

– Value added statement

– Five year financial summary

UPDC REAL ESTATE INVESTMENT TRUST FINANCIAL STATEMENTS

FOR YEAR ENDED 31 DECEMBER 2021

PARTIES TO THE TRUST

trustees

United Capital Trustees Limited UBA House (12th Floor)

57 Marina

Lagos

Telephone: (01) 2807032

trustees

FBN Quest Trustees Limited 10 Keffi Road

Off Awolowo Road, SW 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:[email protected]

site:www.stanbicibtcassetmanagement.com

property managers

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

Telephone: (01) 2808349

auditor PricewaterhouseCoopers (Chartered Accountants) Landmark Towers,

5B Water Corporation Drive Victoria Island

Lagos

Telephone: (01) 2711700

Joint Trustees’ Report on the UPDC Real Estate Investment Trust

For the Financial Statements for the year ended 31St December 2021

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, 2021.

Main activities:

The principal activity of the UPDC Real Estate Investment Trust (the “REIT”) is to pool investment in a diversified portfolio of 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 (the Applicable Regulations).

Results:

The results for the year ended 31St December, 2021 are set out on pages 9 and 10

Change of Fund Manager

During the year under review, a new Fund Manager was appointed by the Joint Trustees with the approval of the Securities and Exchange Commission. Stanbic IBTC Asset Management Limited is new Fund Manager for the UPDC REIT.

Directors:

The Directors of the Fund Manager who served during the period under review were:

dr Demola Sogunle	Chairman
Mr. Oladele Sotubo	MD
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

Directors’ and related parties’

None of the directors of the Fund Manager, FBNQuest Trustees Limited andinterest in the units of the United Capital Trustees Limited has any direct beneficial interest in the units

REIT:

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 Trustees:

ofthe

The responsibilities of the Trustees as provided by the Securities and Exchange Commission’s Rules and Regulations made pursuant to the Investments and Securities Act, 2007 are as stated below:

•  Monitoring the activities of the Fund Manager and the Custodian on behalf of and in the interest of the Unit Holders;

•  Ensuring that the Custodian takes into custody all of the Scheme’s assets and holds them in trust for the holders in accordance with the Trust Deed and the Custodial Agreement;

•  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;

•  Taking all steps and executing all documents which are necessary to secure acquisitions or disposals properly made by the Fund Manager in accordance with the Trust Deed and Custodial Agreement;

•  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 necessary action;

•  Ensuring that fees and expenses of the Fund are within the prescribed limits; other

•  Acting at all times in the interest and for the benefit of unit holders of the Scheme.

Administration of the REIT:

During the period under review, the allocation to liquid assets was above the 10% maximum limit as provided in the Trust Deed. The increase in the percentage of liquid assets was due to the drop in the value of the real estate assets. Apart from this, the Fund was administered in accordance with the applicable regulations, taking into account prevailing market conditions as well as preserving and minimizing

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