CREIT’s net income steady despite real estate challenges

Citicore Energy REIT Corp. (CREIT) reported that its net income inched up by two percent in 2024 due to property acquisitions and higher lease revenues from its renewable energy (RE) assets.

In a disclosure to the Philippine Stock Exchange on Monday, March 31, CREIT said it posted a steady net income growth of ₱1.4 billion last year, while its revenues climbed by five percent from ₱1.8 billion to ₱1.9 billion.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) were up by four percent to ₱1.8 billion.

CREIT attributed its strong financial performance last year to a solid base lease, further supported by the seven property acquisitions made in 2023.

The company’s gross leasable area reached 7.1 million square meters (sqm), with 5.1 million sqm dedicated to value-accretive assets, as solar farms under development helped reach its goal of achieving the first gigawatt (GW) in its five-GW-in-five-years plan.

Moreover, CREIT’s assets were supported by full occupancy all year-round and a weighted average lease expiry of 20.44 years.

“The company’s performance in 2024 resulted in a total dividend of ₱0.202 per share, compared to ₱0.199 per share declared the prior year, or a 6.6-percent dividend yield based on the closing price of ₱3.05 per share on the last trading day of 2024,” it elaborated.

Its highest dividend was ₱0.055 in the fourth quarter of last year.

CREIT also distributed 106 percent of its distributable income, which was obtained from both guaranteed and variable leases, exceeding the 90 percent required by the Real Estate Investment Trust (REIT) Law.

Oliver Tan, president and chief executive officer of CREIT, believes that the firm’s performance was able to hurdle past volatile markets.

“CREIT’s continued stability in 2024 reflects its resiliency amid fluctuating market conditions and current challenges faced by traditional REITs. Our operation in a crisis-proof and essential industry has translated to consistent, above-market dividends for our investors in our three years since listing,” he said.