CREIT nets P305 million in 1st quarter

MANILA, Philippines — Citicore Energy REIT Corp. (CREIT), the country’s first renewable energy real estate investment trust, saw a two-percent improvement in its profit in the first quarter, as newly acquired parcels of land bolstered lease revenues during the period.

CREIT reported a net income of P304.96 million from January to March, up from P300.30 million in the same period last year.

The company recorded a 13-percent rise in lease revenues during the quarter to P376.45 million from P331.79 million in the same period last year.

CREIT attributed the   jump in lease revenues to new lease contracts from newly acquired parcels of land from the proceeds of the ASEAN green bond issuance in February.

The company said new lease contracts contributed 11 percent to its total lease revenues for the period.

“CREIT’s investment strategy is focused on adding value-accretive assets to its clean and green real estate portfolio,” CREIT president and CEO Oliver Tan said.

According to the company, newly acquired parcels of land located in Batangas are leased out to affiliate solar power developers at 100 percent occupancy.

CREIT said the Batangas property has increased its land area to 3.4 million square meters as of end-March.

Last March, CREIT’s sponsor Citicore Renewable Energy Corp. (CREC), broke ground for the largest solar power plant to be constructed in Batangas.

The project is expected to be completed in two phases over two years.

“We see a clear path to grow CREIT’s green asset portfolio with potential assets for infusion of land parcels coming from CREC’s five gigawatt project pipeline and commitment to start building a one gigawatt every year for the next five years,” Tan said.