Skye Shelter Fund has announced a 10 percent rise in net income for the period ended September 30 2019, the analysis of its third quarter unaudited financial statement has shown. The double digit growth in bottom line indicates aggressive efforts made by the fund during the period.
Total income for the period rose by 3 percent from N166.50 million in September 2018 to N172.14 million in September 2019. The income came from three sources which are fixed interest income, rental income and profit on investment property disposal.
Skye Shelter Fund generated N96.8 million as income from fixed interest income in the first nine months of 2019 as against N96.02 million same period in 2018. It made N72.5 million as rental income compared with N70.5 million in September 2018. Meanwhile, profit on investment property disposal amounted N2.83 million in the period ended September 2019 whereas no amount was earned during the same period in 2018.
Distribution, admin and other expenses declined by 14.5 percent during the period. This followed a noticeable decline in manager’s fees which stood at N22.5 million in September 2019 in contrast to N25.7 million in September 2018. Other administrative expenses were cut down to N6.98 million in the third quarter of 2019 as against N7.17 million same period last year.
Skye Shelter Fund sold part of Maccido Estate in Abuja during the period as the new cost of the property now put at N160 million whereas it was worth N192 million in September 2018, which means as at the end of the period, the total investment in properties was put at N1.85 billion in September 2019 as against N1.88 billion in September 2018.
“We sold some assets. All our properties are stated at cost. On the average, the last revaluation is about 20 percent above all our carrying cost prices. So, any time we sell, we get good profit.
“Unlike other REITs in the market, we never included revaluation profit unless it is actually realised via a sale. In spite of that, we still pay the highest dividend yield”, Patrick Ilodianya, managing director, Skye Shelter Fund, said.
Following the payment of dividend which saw its unclaimed dividend decline to N262.67 million in September 2019 as against N302.33 million in 2018, the total net assets of the period ended at N2.349 billion in September 2019 as against N2.35 billion same period last year. Basic earnings per share stood at 6.75 kobo for the period compared with 6.15 kobo a year ago.
