Citicore Energy REIT Corporation (CREIT) registered a net income of Php226 million in 2021, a 117% increase from the Php104 million it recorded in 2020.

The country’s first energy REIT recorded gross revenue of Php352 million, of which 95% came from the electricity sales of the Clark Solar Plant and revenues from Citicore Solar Tarlac 1 and 2 in November and December.

Earnings Before Taxes, Interest, Depreciation, and Amortization (EBITDA) rose 24% to Php282 million, translating to an EBITDA margin of 80%. This power revenue stream, however, will no longer apply to CREIT’s financials starting 2022 as CREIT’s service contract for the Clark Solar Plant, as approved by the Department of Energy, was transferred to Citicore Renewable Energy Corporation effective December 25, 2021. The move is part of CREIT’s real estate investment trust (REIT) formation transaction. 

“Beginning January 2022, instead of electricity sales, CREIT’s revenues will primarily consist of more guaranteed, stable lease revenues with upside coming from variable lease revenues. As a result, CREIT is well-positioned to deliver a recurring lease income stream, translating to higher distributable income and dividends to our shareholders moving forward,” CREIT President and CEO Oliver Tan said in a statement.

CREIT debuted in the Philippine Stock Exchange in February, closing at Php2.84 per share – 11.4% up from its initial public offering (IPO) price of Php2.55 apiece.

Using the proceeds from its IPO, CREIT will be acquiring Php2.51 billion worth of properties in Bulacan and South Cotabato for the development of solar farms. 

CREIT shares closed at Php2.60 apiece on Wednesday.

Click to read more: https://powerphilippines.com/creit-2021-profit-up-117/