UCASU to report 330% net profit growth and 73% operating profit growth for 2021

Rhea-AI Summary

UC Asset LP (OTCQX: UCASU) reports a significant increase in profits for fiscal years 2021 and 2020 after changing its accounting method. The company expects a 73% increase in operating profit for 2021, totaling $1.41 million, and a 330% rise in net income, reaching $671,000. Driven by a strong residential property market, UC Asset shifted its focus to non-residential properties, particularly cannabis, Airbnb, and historic landmarks. The company plans to invest between $10 million to $50 million in cannabis properties, with a $0.10 dividend announced for shareholders.

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

cjordan@ucasset.com | 678-499-0297

FAQ

What are the profit expectations for UC Asset LP in fiscal year 2021?

UC Asset LP expects an operating profit of $1.41 million in fiscal year 2021, a 73% increase compared to $0.82 million in 2020.

How much is UC Asset LP's net income expected to rise in 2021?

The net income for UC Asset LP is expected to increase by 330%, reaching $671,000 in fiscal year 2021.

What changes did UC Asset LP make to its accounting methods?

UC Asset LP switched its accounting method from fair market value accounting to historical cost accounting.

What new investment strategies is UC Asset LP pursuing?

UC Asset LP is focusing on investing in cannabis properties, Airbnb properties, and historic landmarks.

What dividend will UC Asset LP pay to its shareholders?

UC Asset LP plans to distribute a $0.10 per share dividend to its shareholders who held shares by December 31, 2021.

Is UC Asset LP planning to list on a major stock exchange?

Yes, UC Asset LP is committed to seeking an up-list to NYSE American or NASDAQ Small Cap.