Citicore Energy REIT Corporation (“CREIT” or the “Company”), the country’s first energy REIT, reported a net income of P226 million in FY 2021, amid the adverse global impact of the pandemic across most businesses.
The energy sector, on the other hand, remained resilient and showed a strong performance brought about by the sustained high demand for electricity as a result of remote work arrangements and work-from-home set-up.
The Company reported audited gross revenues of P352 million, 95% of which was attributed to the sale of electricity from the Clark Solar Plant and the balance from land lease revenues coming from Citicore Solar Tarlac 1 and 2, which covered the periods November-December 2021 and December 2021, respectively.
EBITDA rose 24% to P282 million, translating to an EBITDA margin of 80%, with net income after tax surging to P226 million, more than double the previous year’s P104 million.
This power revenue stream, however, will no longer apply to CREIT’s financials starting 2022 as the Company’s service contract for Clark Solar Plant, as approved by the Department of Energy, was transferred to Citicore Renewable Energy Corp. (CREC) effective December 25, 2021 as part of CREIT’s REIT formation transaction.
“Beginning January 2022, instead of electricity sales, CREIT’s revenues will primarily consist of a 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,” says Oliver Y. Tan, CREIT President and CEO.
CREIT tapped the capital markets through its Initial Public Offering (IPO) last February 22, 2022, and sizzled with an +11% performance, closing at P2.84/share from an IPO offer price of P2.55/share, highlighted as the Best Manila IPO debut since 2007.
CREIT trailblazed the local REIT market diversification, going beyond the existing commercial property REITs in the market and offered the first energy-themed REIT in the country.
“We are proud that CREIT’s maiden offering and we are very grateful and thankful to the investing public for embracing this first of its kind REIT variety and the Year of the Tiger’s first IPO”, Tan added.
Last March 9, 2022, CREIT declared cash dividends of P0.035/share representing its FY2021 performance to stockholders on record as of March 28, 2022 and payable on April 4, 2022. The amount is slightly higher than the Final REIT Plan’s 0.030/share projection for the said year.
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