CREIT income climbs last year

MANILA, Philippines — Citicore Energy REIT Corp. (CREIT), the country’s first renewable energy REIT, saw its net income expand by more than five times last year to P1.25 billion on the back of robust revenues.

Revenues of CREIT jumped by more than four times to P1.37 billion in 2022, with the shift in revenue source coming from its land portfolio.

CREIT said the REIT business model of leasing assets has proven to be more efficient and profitable.

The company has completed one year operating as a full-fledged real estate investment trust or REIT company, generating largely resilient lease revenues, compared with purely electricity sales in the past.

“The higher income we generated as a renewable energy REIT allows us to share a bigger pie with our investors and other stakeholders,” CREIT president and CEO Oliver Tan said.

CREIT said its unique green asset portfolio, with total landholdings of almost two million square meters and backed by 100 percent occupancy all year-round, has allowed the company to declare above-prescribed and steady dividends during the year.

The company has declared a total dividend of P0.183 per share comprised of P0.176 per share regular dividends from its guaranteed base lease and P0.007 per share special dividends from its variable lease.

CREIT has consistently paid out 107 percent of its distributable income in 2022 for its guaranteed base lease, more than the mandatory 90 percent requirement under the REIT Law.

“Our commitment to shared prosperity extends beyond the financial aspect as we also continue to strengthen our agro-solar and sustainability initiatives, expanding the use of the land as we share with our farmer community stakeholders,” Tan said.

“Moving forward, we remain committed to build on our green asset portfolio with the sponsor’s plan, Citicore Renewable Energy Corp., to pursue its five gigawatt pipeline project growth roadmap that will serve as potential assets for future CREIT infusion,” he said.