Citicore Energy REIT Corp. (CREIT or the “Company”), the country’s first renewable energy REIT, posted a net income of Php 1.25 billion for the full year of 2022, more than five times the amount it generated in the previous year. Revenues likewise grew more than four times to Php 1.37 billion, with the shift in revenue source, coming from CREIT’s rich land portfolio.
The Company completed one year operating as a full-fledged REIT company, generating largely resilient lease revenues, compared with purely electricity sales previously.
The REIT business model of leasing assets proves to be more efficient and profitable as well, with EBITDA and net income margins higher at 98% and 91%, respectively, as of year-end vs 88% and 64% in the previous year.
“The higher income we generated as a renewable energy REIT allows us to share a bigger pie with our investors and other stakeholders,” said CREIT President and CEO Oliver Tan.
With the strong performance, CREIT has declared a total dividend of Php 0.183/share – comprised of Php 0.176/share regular dividends from its guaranteed base lease and Php 0.007/share special dividends from its variable lease, representing a 7.35% yield based on March 27 closing price of Php 2.49/share.
For its guaranteed base lease, CREIT has consistently paid out 107% of its distributable income in 2022, more than the mandatory 90% requirement under the REIT Law. In less than a year as a listed company, CREIT became a constituent of the PSE Dividend Yield Index (PSE DivY Index) beginning February 6, 2023. The index was launched in 2022 to focus on investment securities that consistently give high-yielding dividends. CREIT’s unique green asset portfolio, with total landholdings of almost 2,000,000 square meters and backed by 100% occupancy all year-round, has allowed the Company to declare above-prescribed and steady dividends during the year.
“Our commitment to shared prosperity extends beyond the financial aspect as we also continue to strengthen our Agro-solar and sustainability initiatives, expanding the use of the land as we share with our farmer community stakeholders. Moving forward, we remain committed to build on our green asset portfolio with the Sponsor’s plan, Citicore Renewable Energy Corporation (CREC), to pursue its 5GW pipeline project growth roadmap that will serve as potential assets for future CREIT infusion,” added Tan.
