Citicore Energy REIT Corporation (CREIT) declared cash dividends amounting to P353 million or P0.054 per share which is 10 percent higher than the P0.049 a share dividend declared in the previous quarter. 

In a disclosure to the Philippine Stock Exchange (PSE), the firm said this brings total dividends declared out of full-year 2023 net income to P1.3 billion or P0.199 per share, or nine percent higher than the P0.183 given out in 2022.

“CREIT has been showcasing resilience with consistently growing lease revenues, resulting in an attractive dividend-paying REIT instrument,” said CREIT President and CEO Oliver Y. Tan. 

He noted that “this is a testament to our investment strategy to add value-accretive assets into the REIT, consequently increasing shareholder value. We have remained committed to our goal to accelerate CREIT’s growth trajectory by growing its green asset portfolio, mirroring the growth of its sponsor, Citicore Renewable Energy Corporation (CREC)."

The P0.054 per share dividend amount represents income from its guaranteed and variable lease revenues for the fourth quarter of 2023, which was boosted by the lease contracts from new parcels of land acquired from the proceeds of CREIT’s ASEAN Green Bond issuance in Feb. 10, 2023. 

“The accretive revenues stemming from the seven new parcels of land acquired in 2023 solidified CREIT's position as the largest landlord for renewable energy real estate properties, with 7.1 million square meters in total leasable space,” the firm said.

The P0.054 a share is the largest cash dividend declaration since the company listed in 2022 and equates to an annualized yield of 7.8 percent, based on the year end 2023 closing price of P2.56. 

The Dividend Declaration Date is March 19, 2024, Record Date of April 18, 2024, and with a Payment Date slated for May 15, 2024.

The new parcels of land acquired are leased out to the new projects of CREIT Sponsor, CREC, that are currently under construction. CREC has over 5GW of project pipeline in varying stages of development.

CREIT’s unique green asset portfolio, with total landholdings of 7,100,000 square meters and backed by 100 percent occupancy all year-round, has allowed the Company to consistently declare above-prescribed and steady dividends since its listing in the stock market.

Meanwhile, during The Asset’s Triple A Sustainable Finance Awards 2024 in Hong Kong, CREIT won the Best Green Bond Award for its maiden P4.5 billion ASEAN Green Bond offering issued in February 2023. 

The said green bond was oversubscribed, with the P1.5 billion oversubscription option fully taken up during the offer period from Jan. 30 to Feb. 3, 2023.

The award is CREIT’s second from The Asset – the first being the Best IPO for the Philippines at The Asset Triple A Country Awards for Sustainable Finance in 2022. 

“Being recognized once more by a premiere financial information source The Asset is an honor for us, and it fuels our drive to pursue bigger growth for our investors, while being cognizant of our ESG footprint,” said Tan. 

CREIT Chairman Edgar Saavedra said, “CREIT made its mark as the first Renewable Energy REIT in the Philippines and the first REIT to issue ASEAN Green Bonds. This recognition proves our success in providing value not only as an alternative REIT asset class, but also as a product which emphasizes impact investing and an ESG focus.”