FSDH Capital Limited (the “Arranger”) is pleased to inform you that the Series 1 Commercial Paper Issuance (“CP”) of Smart Residences Limited (“Smart Residences”, the “Issuer” or the “Company”) of up to ₦1.2 billion is NOW OPEN and scheduled to close Tuesday, 23 April 2024.

Smart Residences Limited is a fast-growing hospitality business which primarily operates in Abuja and focuses on offering serviced short-term rental apartments to corporate and individual clients. The Company’s principal revenue sources are rental inflows on apartments, food and beverages sold to customers and event hosting income.

Over the past 3 years, the company has grown its portfolio from 30 leased apartments to over 220 apartments, despite rising competition domestically. Smart Residences Limited’s profitability metrics are upheld by robust growth in its operating scale and its relatively sturdy ability to pass on cost increases to its customers to preserve margins and a strong cash flow position upheld by sustained net earnings growth.  Within 4 years of operation, Smart Residences Limited has 10x its Cash Flow from Operations from ₦130 million FY 2020 to ₦1.4 billion FY 2024, maintained its Return on Invested Capital at 18% from 2022, and more than tripled its Net Income. The company’s Revenue in its most recent fiscal year was ₦2.7 billion,

with EBITDA of ₦1.26 billion (46.8% margin) and Net Income of ₦360 million (13.3% margin).

Please see the financial summary below:

Please see indicative terms of the Commercial Paper Issuance below:

For more information, please refer to the documents listed below, which can be accessed through this  link

1. Programme Memorandum
2. Series 1 Pricing Supplement
3. Series 1 Commitment Form
4. Augusto rating report
5. Investor Presentation
6. Financial Information
7. Pension Certificate