MANILA, Philippines — Citicore Energy REIT Corp.’s bottom-line skyrocketed in 2022, with officials saying the company's decision to change its business model and become the Philippines' first energy-focused real estate investment trust (REIT) firm proved profitable.
In a disclosure sent to the Philippine Stock Exchange on Wednesday, CREIT posted a net income that leapfrogged 454% year-on-year to P1.25 billion in 2022.
Revenues also posted gains, ballooning 290.2% on-year to P1.37 billion.
CREIT is the sixth REIT company in the Philippines, and the first non-office REIT at that. Proceeds from the company's maiden share sale last yearn would be used to buy property assets in Bulacan and South Cotabato which will be leased to solar power plants within the Citicore Group.
That said, CREIT completed one year operating as a full-fledged REIT company, generating lease revenues compared with purely electricity sales previously.
“The higher income we generated as a renewable energy REIT allows us to share a bigger pie with our investors and other stakeholders,” said CREIT president and chief executive officer Oliver Tan.
CREIT declared a total dividend of P0.183 per share in 2022.
The company noted it paid out 107% of its distributable income as dividends, anchored by full occupancy rates in its 2 million square meters of land assets in its portfolio.
The law mandates REIT firms to hand out 90% of earnings to shareholders.
Tan disclosed they were still keen on pursuing its parent company’s plan, Citicore Renewable Energy Corp., of a 5-gigawatt pipeline project growth roadmap that would be possibly added to its portfolio. — Ramon Royandoyan