Citicore Energy REIT Corp. is preparing to transition to “more guaranteed” land lease earnings after more than doubling profit last year from energy sales.
The country’s first renewable-energy themed real estate investment trust (REIT) saw profits surge about 117 percent to P226 million in 2021 as revenues jumped over 30 percent to P352.29 million.
Citicore Energy REIT said 95 percent of revenues came from electricity sales via the Clark Solar Plant, while land lease revenues accounted for the remainder of the sum.
The company, however, lost its power revenue stream last January after the service contract for the Clark Solar Plant was transferred to REIT sponsor, Citicore Renewable Energy Corp.
This means Citicore Energy REIT’s future earnings will depend on land leases, thus more closely resembling other REIT companies while keeping its focus on the energy sector amid the government’s strong push for new power capacity, including those from renewable sources.
In a statement on Wednesday, Citicore Energy REIT president and CEO Oliver Tan said land leases would provide more stable earnings while “upside” would come from variable lease revenues.
“As a result, [Citicore Energy REIT] is well positioned to deliver a recurring lease income stream, translating to higher distributable income and dividends to our shareholders moving forward,” Tan said.