CREIT income up in 9 months
Citicore Energy REIT Corp. (CREIT), the real estate investment trust (REIT) business unit of the Citicore group, reported accelerated growth in income in the past nine months to P906.5 million, more than eight times its last year’s earnings of P118.59 million.
In the third quarter alone, the company similarly posted income hike to P305.32 million, a growth of more than 10 times from last year’s comparatively lean outcome of P29.39 million.
On the revenues front, CREIT registered five-fold growth at P996.8 million, owing to “shift in revenue source from electricity sales to the more stable and resilient land lease” that has been drawn from CREIT’s cavernous land portfolio of roughly 200 hectares.
The REIT firm expounded that the upturn in earnings enabled it to declare cash dividend to outstanding stockholders amounting to P0.044 per share – and that will be payable on January 5 next year.
CREIT emphasized that since its listing last year, it “consistently paid out 107-percent of its distributable income” – which goes beyond the mandatory 90-percent requirement,” adding that it targets to “sustain the momentum on a quarterly basis in line with the company’s REIT plan and dividend policy.”
The company is similarly undertaking its maiden P3.0 billion ASEAN green bond issuance “to fund the acquisition of new real estate properties and further cement its position as the largest renewable energy landlord in the Philippines.”
Via the proceeds of the planned bond offering, CREIT is targeting to prop its land portfolio by additional 500 hectares more, which in turn, will be leased out to solar power generators and operators. The green bond issue has an overallotment option of P1.5 billion,
Citicore Renewable Energy Corporation (CREC), which serves as CREIT’s sponsor firm, has around 3,000 megawattsdc of blueprinted solar farm installations that it will be advancing to commercial fruition in the next five years.
Once completed, Citicore noted that “these assets can then be potentially infused into CREIT to strengthen and diversify its portfolio of renewable energy-based leasing revenues.”
Both CREIT and CREC are subsidiaries of Citicore Power Inc., an energy company that is affiliated with the Megawide group and has been focusing its investments in the renewable energy space.