Smart Residences Limited

Since its inception in 2020, Smart Residences Limited has quickly emerged as a leading and reputable player in Nigeria’s burgeoning real-estate and hospitality industry. By offering first-class serviced speciality apartments to individuals, tourists and corporate organizations, alongside unparalleled food and catering services, it has garnered a reputation for delivering an exceptional guest experience that exceeds clients’ expectations, establishing itself as a prominent and respected entity in Nigeria’s thriving real estate and hospitality industry.*

The company presently operates from three prime locations in the Federal Capital Territory, Abuja – The Residence, Glass Residence, and The Destination. The Residence, comprising 30 premium apartments and  commenced operations in January 2020, while Glass Residence, with upscale 30 units of apartments and occupying 4,000 SQM, opened its doors to customers in May 2021.

The newest addition is The Destination, completed in December 2022, and the most extensive of the three buildings comprises of 110 serviced apartments in one, two or three bedrooms, and consist of a penthouse, as well as restaurants, business lounge, meeting rooms and event halls among other top-notch amenities.

In 2022, Smart Residences Limited (SRL) received a “Bbb-” rating from Rating Company, Agusto & Co, indicating the company’s sound financial health, and capacity to meet its obligations as they fall due. Remarkably, SRL has gone on to obtain an “A-” rating from DataPro, a prominent global data analytics and credit rating agency, within a year of the “Bbb-” rating. DataPro’s report emphasized SRL’s strong profitability and cash flow levels, which have been buoyed by the company’s sustained growth since its founding in 2020.

This exceptional performance underscores SRL’s commitment to delivering exceptional hospitality services and solidifying its position as a leading player in the real estate and hospitality industry.

DataPro’s “A-” rating for Smart Residences Limited (SRL) not only highlights the company’s robust profitability and cash flow levels but also recognizes its comprehensive approach to risk management. The rating takes into account various factors such as SRL’s capitalization, earnings profile, liquidity, corporate governance, regulatory compliance, and sustainability in evaluating its current sound position in the medium to long term.

Smart Residences Limited (SRL) has made impressive strides in generating revenue primarily from the rental of serviced apartments, special spaces, and sales of food and beverages. In FYE 2022, the company recorded a remarkable N1.2 billion in revenue, representing an astounding 162% increase compared to the previous year’s revenue of N485.1 million.

The rental of serviced apartments contributed significantly to SRL’s earnings, accounting for 79% of the total revenue in 2022.

The company’s pre-tax profits witnessed an impressive growth of 214%, from N145m in 2021 to N457m in 2022. The margins also improved from 31% to 37% within the same period. The company’s total assets deployed to operations surged to N7.2b in 2022 from N0.6b in 2021, majorly due to the significant increase in current and non-current assets.

Notably, a majority of these assets are long-term in nature, indicating the company’s strong future growth prospects.

Moreover, the company’s equity experienced a remarkable boost due to the deposit of shares by shareholders. In 2022 alone, the company received an injection of N4.5b in additional funds, with profit retention contributing N102m. Consequently, the equity surged by 98.2% from N0.5b in 2021, reflecting the company’s financial stability and impressive performance.

Smart Residences Limited’s rating is further bolstered by its highly experienced management team, which includes seasoned professionals and hoteliers with over 17-30 years of expertise in the field.

The company is guided by a board of directors consisting of both non-executive and executive members who oversee its affairs. Despite the significant risks posed by factors such as legal, reputational, credit, and damage risks, the company has developed policies to mitigate these risks and ensure its continued success.

Currently, the company is poised to embark on unique upscale residential developments namely HomeAway and The Prestige, which will deliver one-of-a-kind signature apartments for home buyers and accommodation seekers.