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Real estate investment trusts

Citicore Energy REIT Corp. Reports 12 Percent Year-on-Year Net Income Growth in First Half of 2023

Strategic Insights

— 2 min read

Citicore Energy REIT Corp.'s (CREIT) financial performance in the first half of 2023 has been marked by a significant increase in revenue and net income. The company reported a 12 percent year-on-year rise in net income to P693.41 million, driven by the full impact of new parcels of land acquired and leased to solar power plant operators. This growth has solidified CREIT's position as the largest renewable energy real estate investment trust (REIT) in the Philippines. The company's president, Oliver Y. Tan, attributes the success to the strategic asset acquisitions and the resilience of the company's REIT investment strategy.

Key Takeaways:

  • CREIT's net income rose by 12 percent year-on-year to P693.41 million in the first half of 2023.
  • The increase in net income is mainly attributed to the full take-up of incremental revenues from assets acquired in 2023, which were financed by the green bond issuance.
  • Revenues stood at P920.85 million, a 15 percent increase from last year's level, driven by the full impact of new parcels of land acquired and leased to solar power plant operators.
  • CREIT's EBITDA and net income increased by 14 percent and 12 percent, respectively, solidifying the company's position as the largest REIT in the Philippines.
  • The company declared dividends for the first half amounting to P0.049/share, payable on October 4 to shareholders on record as of September 10.
  • CREIT has sustained the delivery of attractive dividends each quarter, driven by growing lease revenues and strategic asset acquisitions aligned with Citicore Renewables' project pipeline.
  • The company's sponsor, Citicore Renewable Energy Corp. (CREC), has an over five-gigawatt (GWs) project pipeline in various stages of development.
  • CREC's unique green asset portfolio has a total landholding of 7,100,000 square meters and a 100 percent occupancy rate with a weighted average lease expiry of 20.94 years.

Statistics:

  • P693.41 million: Net income for the first half of 2023 (a 12 percent year-on-year increase)
  • P920.85 million: Revenues for the first half of 2023 (a 15 percent increase from last year's level)
  • 14 percent: Increase in EBITDA
  • 12 percent: Increase in net income
  • P0.049: Dividends declared for the first half
  • October 4: Payment date for dividends
  • September 10: Record date for shareholders
  • 5 GWs: Project pipeline of Citicore Renewable Energy Corp. (CREC)
  • 7,100,000 square meters: Total landholding of CREC's green asset portfolio
  • 100 percent: Occupancy rate of CREC's green asset portfolio
  • 20.94 years: Weighted average lease expiry of CREC's green asset portfolio
  • 285 MW: Combined gross installed capacity of CREC's solar power facilities
  • 145.0 MW: Combined installed capacity of leased properties

Sources:

  • "Citicore Energy REIT Corp. reports 12pc increase in net income for first half." (No date)
  • CREIT corporate website (citicore-creit.com)

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