MOFI Real Estate Investment Fund (MREIF) reported profit before tax of N14.49 billion for the six months ended June 30, 2026, supported by strong income generation from its investment portfolio.
Interest income from cash and cash equivalents and financial assets measured at amortized cost totalled N14.31 billion, accounting for 81.9% of the Fund’s N17.48 billion total income during the period.
After withholding tax of N250.5 million, profit after tax stood at N14.24 billion for the period
Key Highlights (H1 2026)
- Total income: N17.48 billion
- Interest income on financial assets: N8.10 billion
- Interest income on cash and cash equivalents: N6.21 billion
- Interest income on mortgage loans: N3.11 billion
- Operating expenses: N2.99 billion
- Total assets: N269.88 billion (Down 0.15% from N270.29 billion as of 2025)
- Cash and cash equivalents: N80.62 billion (Up 7.74% from N74.82 billion as of 2025)
- Investment securities: N62.31 billion (Down 51.06% from N127.30 billion as of 2025)
- Mortgage loans: N126.86 billion (Up 86.09% from N68.17 billion as of 2025)
- Total liabilities: N3.11 billion (Down 82.50% from N17.75 billion as of 2025)
- Net assets to unitholders: N266.78 billion (Up 5.64% from N252.54 billion as of 2025)
- NAV per unit: N106.71
Driving the numbers
MREIF’s earnings were largely driven by income from its investment portfolio, with interest income accounting for almost all of the Fund’s operating income during the period.
Interest income from financial assets measured at amortised cost contributed N8.10 billion, representing 46.4% of total income, making it the largest contributor to earnings.
This was followed by interest income from cash and cash equivalents of N6.21 billion, accounting for 35.5% of total income.
- Mortgage loan interest income contributed N3.11 billion, representing 17.8% of income.
The comparison between asset allocation and income contribution indicates that cash and financial assets generated a larger proportion of income relative to their balance sheet size, while mortgage loans, although the largest asset class, contributed a smaller share of total income.
- Mortgage loans represented 47.0% of assets but generated 17.8% of income, while cash balances represented 29.9% of assets but contributed 35.5% of income.
- Operating expenses amounted to N2.99 billion, representing 17.1% of total income, with management expenses accounting for the largest cost item at N2.08 billion.
After expenses and withholding tax, the Fund reported profit after tax of N14.24 billion, strengthening retained earnings and supporting its net asset value.
Balance Sheet and NAV
MREIF maintained a strong balance sheet position, with total assets of N269.88 billion as of June 30, 2026.
- The Fund’s capital structure remained largely equity funded, with total equity of N266.78 billion, representing 98.9% of total assets.
- Unit holders’ equity contributions accounted for N250 billion, while retained earnings stood at N2.54 billion alongside profit for the period of N14.24 billion.
The Fund reported a net asset value per unit of N106.71, calculated from net assets of N266.78 billion divided by 2.5 billion outstanding units.
Market reaction
MREIF shares were priced at N100.00 as of July 21, 2026, reflecting market capitalization of N100 billion
This represents a discount of 6.3% to NAV, meaning investors are pricing the Fund below the underlying value of its assets.
Dividend distribution
MREIF had declared and paid on 15 July 2026, H1 2026 dividends of N2.8022 per unit for Series I investors and N8.6136 per unit for Series II investors.
