Lagos-based mid-sized property developer Veritasi Homes & Properties Plc staged a sharp revenue recovery in 2025, halting a two-year operational slump. Total revenue surged 39% year-on-year to ₦28 billion ($19 million), primarily cushioned by aggressive price hikes and strong performance in its premium segments.
The recovery materialized despite a steep drop in overall sales volume, which fell to 180 units from a previous 318 units, alongside a dip in land sales. Veritasi’s flagship Eko Atlantic City development anchored the top-line recovery, achieving significant market velocity with over 75% of its 82 premium units pre-sold.
To offset contracting volumes, management is executing a strategic pivot from pure-play luxury to a mass delivery model. The developer has launched an affordable housing pipeline targeting 1,000 units across Lagos and Abuja, driven by bulk-purchase partnerships with financial institutions and cooperative societies.
Debt Volatility: The ₦22 Billion Leverage Spike and Swift Unwinding
Veritasi’s balance sheet underwent extreme structural shifts over the past 12 months as expansion plans forced a heavy reliance on local debt markets. Gross debt rocketed to ₦22.3 billion in 2025, up from just ₦3.9 billion in 2024, following an ₦18 billion capital markets binge across bonds and commercial paper.
However, management moved aggressively to deleverage in the first half of 2026. By May 2026, gross debt exposure was hacked down to ₦10 billion through the early redemption of a ₦5 billion secured bond and a ₦6 billion commercial paper settlement.
Liquidity Constraints and Refinancing Vulnerability
Despite the debt clear-out, liquidity remains a core credit rating constraint for the developer. Short-term debt obligations continue to dominate the capital structure, sustaining elevated refinancing risks.
While the ratio of short-term debt to total debt has improved—falling from a precarious 73% in 2024 to 43% in 2025 and 39% in Q1 2026—it remains high enough to keep the firm’s liquidity coverage marginal at just above 1x heading into late 2026 and 2027. Treasury expects to meet immediate construction and debt service obligations via an ₦6.9 billion cash buffer (as of March 2026) and paced partner inflows.
Credit Profile: Inside the ₦30 Billion Bond Readjustment
A closer look at Veritasi’s long-term capital structure reveals a unique modification to its primary debt instrument on the Securities and Exchange Commission (SEC) register.
| Bond Parameter | Initial Structure (Dec 2025) | Amended Structure (May 2026) |
| Total Programme Size | ₦30.0 Billion | ₦30.0 Billion |
| Series 1 Issuance Size | ₦10.0 Billion | ₦5.0 Billion |
| Tenor / Legal Maturity | 3 Years (Dec 10, 2028) | Unchanged (Dec 10, 2028) |
| Payment Frequency | Semi-annually in arrears | Unchanged |
| Security Status | Senior Secured (Legal Mortgage) | Unchanged (Free of prior encumbrance) |
Source: GCR
The May Discretionary Buyback: The 50% reduction in the outstanding Series 1 bond principal was driven entirely by a discretionary buyback transaction executed at the request of the bondholders. While the total debt size was halved to ₦5 billion, all underlying covenants, senior secured statuses, and interest payment timelines remain legally intact.
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