U.S. markets closed
  • S&P 500

    4,136.48
    -43.28 (-1.04%)
     
  • Dow 30

    33,926.01
    -127.93 (-0.38%)
     
  • Nasdaq

    12,006.96
    -193.86 (-1.59%)
     
  • Russell 2000

    1,985.53
    -15.69 (-0.78%)
     
  • Crude Oil

    73.23
    -2.65 (-3.49%)
     
  • Gold

    1,877.70
    -53.10 (-2.75%)
     
  • Silver

    22.40
    -1.22 (-5.17%)
     
  • EUR/USD

    1.0798
    -0.0113 (-1.04%)
     
  • 10-Yr Bond

    3.5320
    +0.1360 (+4.00%)
     
  • GBP/USD

    1.2056
    -0.0173 (-1.41%)
     
  • USD/JPY

    131.1500
    +2.5460 (+1.98%)
     
  • BTC-USD

    23,317.30
    -107.92 (-0.46%)
     
  • CMC Crypto 200

    535.42
    -1.43 (-0.27%)
     
  • FTSE 100

    7,901.80
    +81.64 (+1.04%)
     
  • Nikkei 225

    27,509.46
    +107.41 (+0.39%)
     

UCASU: Pivoting for portfolio diversity

By Beth Senko, CFA

OTC:UCASU

READ THE FULL UCASU RESEARCH REPORT

2021 was a period of change for UC Asset (OTC:UCASU). It continues to diversify its real estate investment strategies which now include: investing in land and above-ground-properties for cannabis/hemp growers, revitalizing underinvested properties in Atlanta and converting them to income-generating assets, and developing ‘Airbnb’-like properties targeting business travelers.

The Company shifted its accounting methodology from fair-market value to historical cost, based on SEC feedback that historical cost methodology is more appropriate given UCASU’s more diverse investment strategy. This change may create more volatility in reported results, as gains/losses are recognized when a property is sold, instead of over the entire asset holding period. However, the underlying business activities have not changed.

In 2021, UCASU reported $3.5 million in investment income including $2.5 million from the sale of residential portfolio holdings, $0.9 million in interest income and unrealized investment gains, and $0.1 million in rental income. At the end of 2021, UCASU we had two houses and one lot in its residential investment portfolio. The Company expects to divest some or all of the properties in the coming years. After expenses, UCASU posted net operating income of $0.7 million in 2021, compared to $0.2 million in 2020. UC Asset reported $0.12 per share net income in 2021, compared to $0.03 in the previous year. Separately, UC Asset announced a $0.10 per share dividend for shareholders.

SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. 

DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.