Intercontinental Homes Savings & Loans PP

[Dragon123]

This pp was concluded early last year. Does any one in the house have an idea when they will list? Thanks.

[Nico J]

Contacts there claim second quarter, i.e on or before June 2008. However, contributions from anyone with more definitive information are welcomed, as I am also eagerly waiting for this investment, which seems to hold a lot of promise with great expectations.

[DEEINVESTOR]

Originally Posted by Nico J

Contacts there claim second quarter, i.e on or before June 2008. However, contributions from anyone with more definitive information are welcomed, as I am also eagerly waiting for this investment, which seems to hold a lot of promise with great expectations.

I heard they are listing in April, if you look at the mortgage sector, the dealing and volume in Union homes has increased because people are taking position, waiting for the listing of intercontinental

[Dragon123]

Originally Posted by DEEINVESTOR

I heard they are listing in April, if you look at the mortgage sector, the dealing and volume in Union homes has increased because people are taking position, waiting for the listing of intercontinental

Please can you explain how an increased volume purchase of Union Homes translate to taking position in a yet to be listed Intercontinental Homes? Thanks.

[samu43]

Originally Posted by Dragon123

Please can you explain how an increased volume purchase of Union Homes translate to taking position in a yet to be listed Intercontinental Homes? Thanks.

A mere guess is considering they are in the same sector and the hope (or reality) that Intercontinental will do well when listed, Union homes will head north as well. This is purely an observation of what happens in the NSE.

Gurus, please add any comments and i equally stand to be corrected.

[BLUEMONEY]

Originally Posted by samu43

A mere guess is considering they are in the same sector and the hope (or reality) that Intercontinental will do well when listed, Union homes will head north as well. This is purely an observation of what happens in the NSE.

Gurus, please add any comments and i equally stand to be corrected.

you are very right becuase that is how the market has been operating. when REDSTAR and NSL came to the market, you will recall the high demand for the shares of TRANS-NATIONWIDE that the market has refused to buy before then. so it is market normal for investors to be taking position in union homes.

[fredski]

Originally Posted by Dragon123

Please can you explain how an increased volume purchase of Union Homes translate to taking position in a yet to be listed Intercontinental Homes? Thanks.

Union Homes is the only stock in it's sector... It's the daddy of the sector (It is the Trend setter and as such has a psychological effect on the sector) also with good fundamentals and solid backing and base. The only direction to go is North

[BLUEMONEY]

Originally Posted by fredski

Union Homes is the only stock in it's sector... It's the daddy of the sector (It is the Trend setter and as such has a psychological effect on the sector) also with good fundamentals and solid backing and base. The only direction to go is North

apart from being the daddy of the sector, a stockbroker made me understand that they are also gearing up for an offer. that could also be responsible for the increase in demand.

[solainvest]

Proshare News

Intercontinental Homes Savings and Loans Plc today in Lagos Nigeria approved a 10 Kobo dividend payout to its investors in the Financial Year Ended (FYE) February 28, 2008 at the company’s 2nd Annual General Meeting (AGM).



The 10 Kobo dividend payout to investors’ amounts to about N547.267 million.



Chairman of the mortgage company, Chief Samuel Adegbite, affirmed that dividend warrants will be posted on September 05, 2008 to shareholders whose names appear on the Register of members at the close of business as at August 22, 2008.



A Financial document made available to Proshare NI shows that Gross Earnings grew from N437 million in year 2007 to N2.482 billion in year 2008 indicating a growth of 468 percent in the review period.



Profit before Tax (PBT) also increased from N34.653 million in year 2007 to N1.056 billion in year 2008 representing an increase of 2947 percent.



While Profit after Tax (PAT) also rose from N21.061 million in 2007 to N767.229 million in year 2008 showing a rise of 3543 percent in the period under review.



In the same vein, shareholders funds of Intercontinental Homes increased from N181.784 million in year 2007 to N7.010 billion in year 2008 representing an increase of 3756 percent.



Intercontinental Homes intends to expand its branches to increase accessibility and launch new products.



Adeniyi Akinlusi, Managing Director (MD) of the Primary Mortgage Institution (PMI) affirmed that with a paid up share capital of N5.5 billion, Intercontinental Homes have become one of the most capitalised players in the mortgage subsector of the Nigerian economy.

[solainvest]

Proshare Nigeria - Sign In to Proshare

CEO Q & A with Intercontinental Homes Savings & Loans

Excerpts:



Intercontinental Homes and provision of houses for Nigerians



We have built a lot of homes for Nigerians and they are really beautiful homes. We want to continue to build more of these homes and therefore have acquired the land; coupled with the infrastructure, we are very confident that more people would patronise Intercontinental Homes.



These include the middle class Nigerians; who are so much interested in the things we are trying to do in the Lekki, Ajah and Ikeja Government Reservation Area (GRA) in all in Lagos State; where we are prominent and people are showing interest.



I would recommend to young and upcoming people to come to Intercontinental Homes and open an account and we will satisfy their needs in terms of the provision of mortgage facilities.



Would the real estate sector generate returns on investment (ROI) compared to the Stock Market?



Of course in the real sense of it, the capital appreciation would be more fantastic and factual. This sector is the real sector compared to just paper profit, it is indeed helping the economy, and we are providing jobs and opportunities for individuals.



Intercontinental Homes and rate on interest in terms of mortgage loans



The interest rate is quite reasonable, it is in relation to the deposit rate, however, and this could be flexible because it changes from time to time. I can assure you that our interest rate is competitive and reasonable. I enjoin Nigerians to get really involved into investment in this area.



Our rate is risk based; people are of different income levels and different jobs; with different number of repayment period. In Intercontinental Homes, we focus on the middle class and the lower class as well.



We have an arrangement with the Lagos State Government (LASG) and a Public Private Partnership (PPP) and we have acquired some lands in order to develop mass housing to benefit so many Nigerians.



Along the Lagos-Ibadan expressway, Intercontinental Homes has done a lot of projects; which necessitated our facilitating National Housing Fund (NHF) loans to so many Nigerians.



At the Federal Mortgage Bank of Nigeria (FMBN) the statistics and the records available shows that one of the most active mortgage companies facilitating the NHF loans is Intercontinental Homes; whose duty is to ensure that most Nigerians have houses.



For NHF we charge six percent and for others, we charge as low as 18 percent. Intercontinental Homes is considering giving single digit interest rates to its clients; if it can succeed in getting offshore funding at a lower rate.



This is our goal and direction, expecting that in the new financial year, we shall achieve that.



Challenges



The challenges has something to do with title considering the land use act, it is a challenge to get all documents as regards our lands.



I urge the government to look into this problem; if they want the property market to be buoyant.



In other parts of the world, especially the Western World, it would just take only a few days to get the title in order; but here in Nigeria it takes a longer period of time.



Intercontinental Homes and its contribution to the Real Estate sector of the Nigerian economy



One is to encourage people to save; because when you have good amount of money, you can subsequently invest in the real estate sector. Aside the Capital Market, the next in line is the real estate sector and I believe in the near future this sector would really boom.



And I encourage Nigerians to invest into this sector; since we are granting mortgage loans with repayment period spread across so many years.



It is worthwhile to open an account, save money and invest into the real estate sector immediately.



The Federal and State governments should assist in this direction; because there are so many people who are homeless.



Intercontinental Homes and coverage in the development of houses



We started with Lagos and Abuja, the Federal Capital Territory (FCT), definitely, we are going to be in other parts of the country. We have developers’ spread across all the nooks and crannies of Nigeria and we provide loans for their operations, apart from this, Intercontinental Homes provide loans for mortgages for Nigerians to buy homes.



Micro-economy and impact on the real estate sector



We do know that based on the persistent increase in global energy cost, inflation is on the rise all over the world, but we also know that the real estate sector has value; therefore the reason for its boom in Nigeria.



At this particular point in time, so many Nigerians are now acquiring homes through mortgages; not only from mortgage banks, but also universal banks.



Inflation has a negative impact considering the cost of materials like cement, iron rods and other building materials. Recently, we have people from the Nigerian Labour Congress (NLC) agitating for the increase of workers salaries; of course if salaries increase, prices of materials in the market would also go up.



However, so many people prefer putting their wealth in real estate to cash; due to the activities of inflation that erodes the value of our money. The real estate is an area where people’s value can be stored and secured.



Intercontinental Homes and floating of rates



Of course we are looking beyond the floating of rates at this particular point in time. Rates are basically meant to put money together and finance investment in the real estate and get returns.



Intercontinental Homes is considering a situation whereby it can get long term fund from the Capital Market. The reason is that in the mortgage business, we have the primary and the secondary market and the only way that we can get adequate funds to ensure that Nigerians acquire homes is approach the Capital Market where a lot of money can be raised.



Intercontinental Homes and raising of fresh funds



We expect that during the new financial year or maybe in the next two years, we would approach the market to raise fresh funds. However, we cannot say the exact amount to be raised now.



As at today, we have about 14 to 16 million housing shortage in Nigeria and everyday, the population is increasing; it is only at that point in time that we would determine the amount to be raised.



Intercontinental Homes and competitive edge compared to peers in the industry



Our major competitive edge is our brand value; Intercontinental Homes is part of a major financial conglomerate, Intercontinental Bank Plc, an organisation that has been in operation for the past 18 years; with offshore branches and international acclaim.



We have increased our profitability from N35 million to over N1.0 billion in a year, it only shows the kind of volume and the things Intercontinental Homes can offer Nigerians.



FACTS CHECK: The Profit before Tax (PBT) presented by Intercontinental Homes in its 2008 Annual Report & Accounts shows that the company’s PBT grew from N34.653 million in year 2007 to N1.056 billion in year 2008 financial year end, indicating a growth of 2947 percent in the review period.



Intercontinental Homes and offshore funding



We want to ensure that we get offshore funding at a very low rate in order to provide mortgages at single digit interest rates.



This is our objective and this would determine the rate at which we get the money from abroad. We are considering and anticipating a final prime lending rate at not more than nine to 10 percent.



If we are to offer such interest rates, then the offshore funds must also be cheaper for us to get.



Apart from this, the current global phenomenon; which includes the housing crisis in the United States (US) has affected this.



However, there has been resurgence in the Nigerian real estate market. The boom in the real estate is still going on; compared to the Stock Market.



And this is based on fundamentals; everyday, we see a lot of Foreign Direct Investment (FDI) into Nigeria and a lot of these people require offices to operate, hotel accommodation and good homes to live in; generate employment for Nigerians; who would also need homes to stay.



Like I said earlier, the real estate sector of the Nigerian economy is based on fundamentals and the boom is based on this fundamental; therefore we expect a sustainable development in this area.



Again, as earlier stated, with the housing shortfall in Nigeria, opportunities abound in the real estate sector.



Future of investors in Intercontinental Homes



The future of Investors in the mortgage company is very bright; they should expect more good returns on their investments.



We early raised funds and projected 0.5 Kobo on shares bought at N1.20 Kobo, this is about eight percent dividend yield.



In the market today, even with quoted stocks, very few companies are able to achieve this fit. This is just the beginning and I encourage investors when we approach the Nigerian Capital Market to raise fresh funds, they should buy into the company and enjoy high returns on their investments.



Intercontinental Homes and its projections in the next three years



We are paying 10 Kobo dividend on the shares of N1.20 Kobo and in future, we expect to increase this by 50 percent.

[hispy99]

Intercontinental Homes approves 10K dividend for investors
Posted Sunday, August 31, 2008



PETER OBIORA

Proshare NI

August 29, 2008 at 18:03 GMT



Intercontinental Homes Savings and Loans Plc today in Lagos Nigeria approved a 10 Kobo dividend payout to its investors in the Financial Year Ended (FYE) February 28, 2008 at the company’s 2nd Annual General Meeting (AGM).



The 10 Kobo dividend payout to investors’ amounts to about N547.267 million.



Chairman of the mortgage company, Chief Samuel Adegbite, affirmed that dividend warrants will be posted on September 05, 2008 to shareholders whose names appear on the Register of members at the close of business as at August 22, 2008.



A Financial document made available to Proshare NI shows that Gross Earnings grew from N437 million in year 2007 to N2.482 billion in year 2008 indicating a growth of 468 percent in the review period.



Profit before Tax (PBT) also increased from N34.653 million in year 2007 to N1.056 billion in year 2008 representing an increase of 2947 percent.



While Profit after Tax (PAT) also rose from N21.061 million in 2007 to N767.229 million in year 2008 showing a rise of 3543 percent in the period under review.



In the same vein, shareholders funds of Intercontinental Homes increased from N181.784 million in year 2007 to N7.010 billion in year 2008 representing an increase of 3756 percent.



Intercontinental Homes intends to expand its branches to increase accessibility and launch new products.



Adeniyi Akinlusi, Managing Director (MD) of the Primary Mortgage Institution (PMI) affirmed that with a paid up share capital of N5.5 billion, Intercontinental Homes have become one of the most capitalised players in the mortgage subsector of the Nigerian economy.

[hispy99]

Intercontinental Homes Promises Shareholders Better Deal
09.12.2008


The chairman of Intercontinental Homes Limited, Chief Samuel Adegbite has promised shareholders of the mortgage bank better deals during the current financial year.

Addressing shareholders at the bank’s annual general meeting held recently, Adegbite said the institution would improve on the 10 kobo paid to them during the 2007 financial year.
He also attributed the firm’s rising overhead cost to extensive recruitment drive which led to the engagement of competent and experienced mortgage bankers during the review period.

Adegbite, explained that quality staff were scarce and costly and the bank even had to pay very high to retain them. He promised the shareholders better deals this year, adding that the board would surprise them with dividend payout this year.

He said the company recorded profit after tax of N767, 229,000, a 3.543 percent growth over the N21, 061,000 recorded in the preceding year.
The shareholders also approved the reappointment of two retiring board members, Samuel Adegbite and Yinka Adebiyi, and the retention of their auditors, PrinceWaterCoopers, both for the year ending February 29, 2009.
Reviewing the operations of the bank earlier, the managing director and chief executive officer of the bank, Adeniyi Akinlusi, noted that the year under review was significant and remarkable for the bank in many ways.

The shareholders however, picked holes with the size of the bank’s balance sheet in the year under review, seeking explanation for the increase in the staff cost and the remuneration of the auditors which has moved from N6 million in the preceding year to N10 million.

Akinlusi disclosed that the year was the bank’s first full year of operation as a mortgage institution offering full banking and real estate services.
According to him, ”it was during the year we embarked on a capital raising exercise for N1.5 billion, but were humbled with the record subscription of N22 billion by the market; a major indication of our market acceptance. With the new paid-up capital of N5.5 billion, we have become one of the most capitalized players in the industry”.

He said it was during this period that Intercontinental Homes embarked on the development of its first major real estate project known as Emerald Court at Oniru estate on Victoria Island extension, which the institution solely conceptualized and financed.

Akinlusi said regardless of economic and environmental challenges such as the rising cost of building materials, frequent interventions by the Central Bank to control money supply in an attempt to contain inflation, the bank through its real estate and banking business segments, had a successful and value-adding financial year.

The Institution, he said attracted large deposits to finance large ticket transactions and projects with subsequent completion of a number of housing projects.