CREIT posts P1.4B net income in 2023

Pioneering renewable energy REIT, Citicore Energy REIT Corp,, has reported a 12 percent growth in its 2023 net income, reaching P1.4 billion following a substantial 31 percent increase in revenues, which rose to P1.8 billion.

In a stock report on Tuesday, CREIT attributed the growth to a strong guaranteed base lease augmented by new properties acquired last year.

Remarkable progress

Throughout 2023, which was its second year as a full-fledged REIT firm, CREIT witnessed remarkable progress, generating resilient lease revenues, a significant shift from its initial focus solely on electricity sales.

CREIT also expanded its landholdings by acquiring seven parcels totaling 5.12 million square meters, thereby enhancing the value of its assets.

Since its market debut in 2022, the company’s green asset portfolio has experienced significant growth, which expanded by 4.3 times.

Furthermore, CREIT’s assets delivered a 100 percent occupancy rate throughout the year — ensuring stable operations and consistent earnings.

“The higher income we generated as a renewable energy REIT allows us to continuously increase value to our shareholders by declaring dividends beyond the mandated 90 percent of distributable income,” CREIT president and CEO Oliver Tan said.

Full year dividend

CREIT has declared a full-year 2023 total dividend of P0.199 per share, compared to P0.183 the prior year. This translates to a 7.8 percent dividend yield based on the 29 December 2023 closing price of P2.56 per share.

For the second straight year, CREIT paid out 106 percent of the company’s distributable income, derived from the guaranteed and variable leases, well above the required 90 percent as stated in the REIT Law.

Last month, SM Investment Corp. acquired a 28.79 percent interest in CREIT for P5 billion.

Single largest stakeholder

Despite the sale, sponsor Citicore Renewable Energy Corp. (CREC) will continue to be the single largest stakeholder in CREIT with a 32.88 percent effective ownership post-transaction.

Proceeds from the sale will contribute to the further development of CREC’s 1,583 megawatts ready-to-build and under-construction solar power projects across eight site locations nationwide.

CREIT targets to contribute approximately one gigawatt of solar energy capacity per year under its five-year pipeline rollout roadmap.