UCASU to report 330% net profit growth and 73% operating profit growth for 2021
Atlanta, May 05, 2022 (GLOBE NEWSWIRE) -- UC Asset LP (OTCQX:UCASU) management announces that the company is expected to report better profit results for both its fiscal years of 2021 and 2020, after the Company switched its accounting method from fair market value accounting to historical cost accounting. Particularly, the company is expected to report an operating profit increase of 73% in fiscal year 2021 over fiscal year 2020. During the same period, the company is expected to report a net income increase of 330%.
For fiscal year 2021, the company is expected to report an operating profit of $1.41 million, representing an increase of 73% from its operating profit of $0.82 million in the previous year. Net profit for fiscal year 2021 is expected to be reported at $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 heated US residential property market in 2020 and 2021. Earlier in 2021management released a white paper, in which management stated its belief that the US residential property market was reaching a historical height, and UC Asset would sell most of its holdings of residential properties.
"At this point, it appears the market trend is verifying our projection, and we are very pleased that we have exited most of our investments in residential properties," says Greg Bankston, managing partner of UC Asset.
Starting in 2021, UC Asset switched its portfolio allocation strategy and purchased non-residential properties, including Airbnb properties and historic landmarks. In the beginning of the fourth quarter, UC Asset announced that cannabis properties would become its primary growing point of portfolio allocation in the next 12 to 24 months. The Company plans to invest $10 million to $50 million in high-yielding cannabis properties, subject to the success of capital raising.
UC Asset will acquire cannabis properties, then lease the properties to licensed growers. This business model will mirror other success cases which have been implemented by established public companies, such as Power REIT (NYSE:PW).
"We expect that our new portfolio, consisting of cannabis properties, Airbnb properties and historic landmarks, will generate great returns and yield even better profits for our shareholders in the coming years," states Mr. Bankston.
For the past year 2021, Bankston confirms the Company will distribute $0.10 per share dividend to all shareholders who held UCASU shares by the end of December 31, 2021.
Bankston also confirms that the company is committed to seeking an up-list to NYSE American or NASDAQ Small Cap, combined with a secondary public offering of approximately $10-30 million, and is engaging investment bankers to meet these 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, concentrating in metropolitan areas of Atlanta, GA. For more information about UC Asset, please visit: www.ucasset.com
Disclaimer:
This News 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, or industry results, to differ materially from any these statements. You are cautioned not to place undue reliance on any those forward-looking statements. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this news release. None of such forward-looking statements should be regarded as a representation by us or any other person that the objectives and plans set forth in this News Release will be achieved or be executed.
For More Information Contact:
Christal Jordan | Executive Director, UC Asset LP
[email protected] | 678-499-0297
