The country’s first energy real estate investment trust reported a net income of P226 million last year, more than double the P104 million earnings booked in 2020 amid a rise in electricity demand due to the pandemic.
Citicore Energy REIT said the power sector remained resilient despite the pandemic. Remote work arrangements and work-from-home setup increased energy consumption.
The company’s revenues jumped 31 percent to P352 million. Of the total, 95 percent came from the sale of electricity from the Clark Solar Plant and the balance from land lease revenues coming from Citicore Solar Tarlac 1 and 2.
Electricity sales soared by P65.4 million due to the feed in tariff rate adjustment.
CREIT said the power revenue stream would no longer apply to its financials starting this year as the its service contract for the Clark Solar Plant, as approved by the Department of Energy, was transferred to Citicore Renewable Energy Corp. (CREC) effective December 25, 2021.
“Instead of electricity sales, CREIT’s revenues will primarily consist of a more guaranteed, stable lease revenues with upside coming from variable lease revenues,” said company president and CEO Oliver Tan.
He said CREIT is well positioned to deliver a recurring lease income stream, translating to higher distributable income and dividends to its shareholders.