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Skye Shelter Fund blames CBN for low dividend

…declares N4 dividend

Skye Shelter Fund has announced a dividend of N4.04 kobo per unit for its shareholders for the financial year ended December 31, 2011, dropping from N9 per unit paid out in the 2010 financial year.

The company blamed the decline in its dividend payout on the Central Bank of Nigeria’s, CBN, tight monetary  policy stance and the lull recorded in the economy during the 2011 general elections.

Mr. Kehinde Durosinmi-Etti, Chairman of the fund, said the fund manager decided to minimize its sale of properties during the year because the period was not the best time to dispose of its real estate investments.

He, however, assured shareholders that the 2012/2013 financial year would be better.

According to him, the fund manager, in keeping with its tradition of paying distribution to its unit holders, sold selected real estate which had already appreciated by almost 100 per cent.

Durosinmi-Etti said that despite the unfriendly business environment in 2011, the fund still declared a net income of about N90 million making it one of the best results among other collective investment schemes.

On the outlook of the fund manager, the chairman expressed optimism that the company’s increasing experience in successfully operating in the real estate sector would assist it to achieve a better result in 2012.

Besides, he said the company has identified niche areas of real estate that would enhance its risk adjusted returns and would remain conservative regarding sale of its assets and focus on rental income until the performance of the industry improves.

The Skye Shelter Fund provides a vehicle for the diversification of investments in Nigeria as it invests and owns some of the choicest real estate assets in the country.

The fund manager which recently was sold by Skye Bank Plc as part of divestment strategy has a stable management team which comprises professionals who have several years of experience in real estate investment.


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