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Skye Shelter’s H1 profit up 6 percent

Skye Shelter Fund (SSF) half year profit rose by 6 percent as the Nigerian real estate operator continues to unrelentingly seek newer opportunities in a country hit by housing deficits.
For the first six months of the year, the company’s revenue rose by 7 percent to N90.24 billion from N84.23 billion in the same period of the corresponding year HY 2013.
Profit after tax PAT increased by 6 percent to N66.95 billion compared to N63.10 billion as at HY 2013.
This improved performance coincided with a surge in the real estate and mutual fund industry.Sky Shelter’s index
The Nigerian mutual fund industry has expanded 23.6 percent to N186.5bn, going by the latest official asset size values released by the Securities and Exchange Commisison (SEC) for August 2014.
The expansion has come on the back of some good performances by specific funds, as well as by new entrants into the Nigerian mutual fund scene.
Additionally, the 17 million housing deficits is one of such opportunities that the SSF company can tap into and expand the size of the fund.
Bridging the deficits will spike the value of the real estate market, which has the potential to be higher than that the stock market value.
The total value of the real estate market in Nigeria is put at N59 trillion, and that is potentially six times bigger than the local stock market which is now valued at N12 trillion, according to Gimba Ya’u Kumo the Managing Director Federal Mortgage Bank of Nigeria (FMBN).
“Let me explain how we arrived at that figure. The housing deficit in the country, which is estimated to be 17 million units, when multiplied by N3.5 million, which is the estimated cost of a single housing unit, it will result in the amount” he said.
SSF is a real estate investment trust (REIT), which pools savings of investors together for onward investment in real estate and other related investments, using the unit trust scheme principles. It was the first REIT to the listed on the Nigerian Stock Exchange (NSE).
Distribution and administrative costs were up 10 percent to N23.29 billion in HY 2014 as against N21.022 billion the corresponding period of last year, while operating expense margin remained flat at 25 percent.
Development fund deposit in the period under review surged by 72 percent to N153.5 million from N89.08 million as at HY 2013.
Total assets were up slightly by 2.55 percent to N2.41 billion compared with N2.35 billion as at HY 2013.
Return on average equity and the return on average assets were 0.28 and 0.29 respectively.
Federal Mortgage Bank of Nigeria (FMBN) is working assiduously through the Federal housing refinancing scheme to boost mortgage business in Nigeria.
Furthermore, FMBN says it will use proactive policies to ensure that the real estate contribution to the Nigeria economy reaches 15 percent from its current 2.2 percent figures
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