Atlanta, May 05, 2022 (GLOBE NEWSWIRE) — UC Asset LP (OTCQX:UCASU) management announces the company is expected to post improved results for both its 2021 and 2020 fiscal years, after the company changed its accounting policy from from fair market value to historical cost accounting. In particular, the company is expected to record an increase in operating profit of 73% in fiscal 2021 compared to fiscal 2020. During the same period, the company is expected to record an increase in net profit of 330 %.
For fiscal 2021, the company is expected to report operating profit of $1.41 million, a 73% increase from its operating profit of $0.82 million in the prior year. Net income for fiscal 2021 is expected to be $671,000, representing a 330% increase from its net income of $174,000 in 2020.
The increase in operating profit is primarily the result of a buoyant U.S. residential real estate market in 2020 and 2021. Earlier in 2021, management released a white paper, in which management said it believes the U.S. residential real estate market was at an all-time high, and UC Asset would sell off most of its residential property holdings.
“At this point, it looks like the market trend is verifying our projection, and we’re very happy to have exited most of our investments in residential properties,” said Greg Bankston, managing partner at UC Asset.
Starting in 2021, UC Asset changed its portfolio allocation strategy and purchased non-residential properties, including Airbnb properties and historic landmarks. At the start of the fourth quarter, UC Asset announced that cannabis properties would become its primary portfolio allocation growth point over the next 12 to 24 months. The company plans to invest between $10 million and $50 million in high-yield cannabis properties, subject to successful capital raising.
UC Asset will acquire cannabis properties and then lease them to licensed producers. This business model will mirror other success stories that have been implemented by established public companies, such as Power REIT (NYSE: PW).
“We expect our new portfolio, comprised of cannabis properties, Airbnb properties and historic landmarks, to generate excellent returns and generate even better earnings for our shareholders in the years to come,” says Mr. Bankston.
For the past year 2021, Bankston confirms that the company will distribute a dividend of $0.10 per share to all shareholders who held UCASU shares by the end of December 31, 2021.
Bankston also confirms that the company is committed to seeking a place on the NYSE American or NASDAQ Small Cap listing, combined with a secondary public offering of approximately $10-30 million, and is hiring investment bankers to achieve those business goals.
About UC Asset LP
UC Asset LP is a limited partnership formed for the purpose of investing in real estate with innovative strategies, focusing in the metropolitan areas of Atlanta, GA. For more information on UC Asset, please visit: www.ucasset.com
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements to be affected, or industry results, to differ materially from these statements. You are cautioned not to place undue reliance on these forward-looking statements. Except as required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this press release. None of these forward-looking statements should be taken as a representation by us or anyone else that the objectives and plans set forth in this press release will be achieved or executed.
For more information contact:
Christian Jordan | Executive Director, UC Asset LP
[email protected] | 678-499-0297