Citicore Energy REIT Corporation (CREIT), the listed real estate investment trust (REIT) affiliate of Citicore Renewable Energy Corporation (CREC), has logged significant upturn in net income in the first quarter this year to P300 million from a leaner P24 million in the same period last year.

The company said its income surged on gains from rents of renewable assets leased out to solar plant operators.

In terms of revenues registered within January to March this year, CREIT similarly reported substantial jump to P332 million; while earnings before interest, taxes, depreciation and amortization (EBITDA) had been at P322 million.

Oliver Y. Tan, president and CEO of CREIT, noted that “with an established list of tenants operating in a cycle-resilient industry, CREIT is optimistic in generating recurring green sources of lease revenues, translating to increasing distributable income and attractive dividend yields to our shareholders.”

Onward, he emphasized that Citicore’s “aggressive growth pipeline and commitment to support CREIT over the long-term is expected to sustain and even surpass our first quarter performance.”

With the highly favorable financial outcome in the first quarter, the board of directors of CREIT similarly approved the declaration of cash dividends covering the quarter at P0.044 per share – for shareholders as of record date June 8, 2022 and payable on June 24 this year.

“The amount represents 107-percent of the distributable income for the first quarter of 2022, up by 20-percent versus fiscal year 2021 dividend declaration and indicates an annualized yield of 7.08-percent based on the May 11, 2022 closing price of P2.46 per share,” CREIT explained.

On its earnings last year, the company granted cash dividend of P0.035 per share; hence, this quarter’s cash yield for the shareholders is manifestly an escalation.

Tan expounded that the declared cash dividend “came solely from the guaranteed base lease, as any incremental dividend income from the variable lease will be distributed at end of the year.”

The company further indicated that starting this year, the distribution of cash dividends to its outstanding shareholders shall be done on a quarterly basis.

“With the above dividend payout, CREIT is well-positioned to achieve the 7.0-percent annualized yield as per REIT Plan,” Tan stressed, adding that the company “will continue beefing up its current asset portfolio through the continued support of its sponsor-firm CREC.”

CREC had previously cast on blueprint its targeted 1,500 megawatts of RE developments – primarily of solar farm installations that are scheduled to be acquired and infused into CREIT upon their completion and commercial operation.