UPDC Real Estate Investment Trust experienced a significant rally on the Nigerian Exchange last week, with its unit price rising from N13.75 on September 11 to N18.55 on September 18, representing a 34.91% weekly gain. This sharp increase made UPDC REIT the top gainer for the week ended September 18, 2026. The rally occurred over five consecutive advancing sessions, with the unit price increasing steadily from N14 on September 14 to N18.55 on September 18.
The strong performance of UPDC REIT was accompanied by a substantial increase in trading activity. A total of 16.39 million units changed hands over the six trading sessions from September 11 to 18, with Friday alone accounting for 5.08 million units. The previous sessions recorded 1.65 million, 1.04 million, 2.81 million, 2.62 million, and 3.18 million units, respectively. At N18.55, UPDC REIT's market capitalization stood at approximately N49.50 billion, based on 2.668 billion units outstanding.
The rally in UPDC REIT's unit price was supported by its strong half-year results for the period ended June 30, 2026. The trust's rental income, its principal operating revenue stream, increased by 88.35% year-on-year to N1.577 billion from N837.15 million in the corresponding period of 2025. Total revenue rose by 42.96% to N2.197 billion from N1.537 billion. Interest income from bank deposits remained significant at N607.93 million, although it declined from N633.86 million a year earlier.
UPDC REIT's net assets attributable to unit holders increased by 56.46% to N1.719 billion from N1.099 billion, while earnings per unit rose to N0.64 from N0.41. The trust's investment property also increased to N30.836 billion at June 30 from N29.595 billion at December 31, 2025. The stronger rental income and improved operating performance provided a clear fundamental backdrop to the market's renewed interest in UPDC REIT.
Despite the significant increase in unit price, UPDC REIT's market price is reflecting expectations beyond the trust's latest reported book value. At N18.55, the unit is trading at a premium of approximately 36.3% to the June net asset value of N13.61 per unit. This premium indicates that the market is expecting continued rental-income growth and future distributions from the trust.
UPDC REIT's balance sheet also strengthened during the first half, with total assets rising to N38.768 billion from N36.290 billion. Cash and cash equivalents increased to N7.149 billion from N5.779 billion. The trust also recorded an increase in rent received in advance, which rose to N1.571 billion at June 30 from N666.48 million at December 31, 2025.
The trust's distributions to unit holders also increased, with N880.53 million distributed during the first half of 2026, compared with N1.393 billion distributed during the whole of 2025. UPDC REIT's year-to-date gain of 168.84% provides the clearest indication of the scale of the repricing, with the unit rising by approximately 190% from its 52-week low of N6.40 to the September 18 close of N18.55.
Key points
- UPDC REIT's unit price surged 34.9% to N18.55, driven by a strong improvement in rental income.
- The trust's half-year results show a 56.5% increase in net assets attributable to unit holders.
- UPDC REIT is trading at a premium of approximately 36.3% to its June net asset value.
