Barely two weeks after its initial public offering (IPO), Citicore Energy REIT Corporation (CREIT) has declared cash dividend of P0.035 per share; and it is expecting that to increase to P0.18 per share for year 2022.

The initially declared cash dividend represents 102-percent of the estimated P229 million net distributable income of the company as of December 31, 2021; while the targeted dividend hike is anchored on distributable income climb to P1.166 billion for full-year 2022.

For this year, the company is eyeing P1.35 billion in revenues -- and that shall be propped by the infusion of its Bulacan and South Cotabato assets into CREIT.

“With the full year lease of CREIT’s properties and the infusion of the Bulacan and South Cotabato properties in 2022, which adds 20-percent to the company’s current total leased area and will contribute an incremental 27-percent to total guaranteed revenues, CREIT is expected to boost its revenue to P1.353 billion in 2022 from P352.3 million in 2021,” the energy firm reiterated.

Oliver Tan, president and CEO of CREIT, said the company’s board “approved the cash dividend to show CREIT’s commitment to investors as a sustainable and attractive dividend paying instrument.”

He expounded “this maiden dividend also reflects our confidence in the business model and its long-term prospects,” with him qualifying that “effective yields remain above existing benchmarks.”

Onward to 2023 and 2024, CREIT indicated that the company is expecting to distribute 107-percent and 106-percent, respectively, of its projected distributable income – and that shall be based on its IPO price of P2.55 per share.

“CREIT’s earnings for the year ended December 2021 substantially came from the sale of electricity of its Clark Solar plant and the balance comprising 7.0-percent to total earnings came from the two-months lease income from its two leased properties in Tarlac,” the company noted.

It further explained that during the IPO process, CREIT “concluded several transactions to secure income generating properties.”

Within this year, the total operating capacity of CREIT’s tenant will also escalate to 145 megawatts (dc) vis-à-vis the pre-IPO level of 124MWdc.

In the immediate term, the project development ramping up on the company’s blueprint would be capacity shoring up to 780MWdc by 2025, which accounts for more than five (5) times growth trajectory on its investments.

This roadmap provides clear visibility on the project pipeline for potential infusion into CREIT’s asset portfolio and the basis for a sustained dividend payout program,” the company stressed.