Citicore Energy REIT Corp. (CREIT) has posted a net income of Php 906.5 million for the first nine months of 2022, an eight-fold increase from the same period last year.
“The REIT business model of leasing assets proves to be very efficient, with operating and net income margins higher at 92% and 91% respectively as of September 2022 vs 64% and 62% in the previous year. This enables us also to generate higher income and share a bigger portion of our distributable income with our shareholders, compared with other investment alternatives,” CREIT president and CEO Oliver Tan said in a statement.
The company’s revenue also grew five-fold to Php 996.8 million amid the shift in revenue source from electricity sales to a more stable and resilient land lease which came from CREIT’s 200-hectare portfolio.
“The guaranteed and recurring revenues from CREIT’s 100% occupancy and long-term lease contracts with cycle-resilient solar plant operators protect us even during adverse market conditions, and allow us to reward our shareholders with a steady dividend stream despite market uncertainties,” Tan said.
CREIT earlier said that it will issue ASEAN Green Bonds in the fourth quarter in order to accelerate its real estate asset portfolio growth. The company is set to offer Php 3 billion shares with an oversubscription allotment of Php1.5 billion.
“Our goal now is to accelerate CREIT’s growth trajectory and grow its green asset portfolio by acquiring real estate properties ideal for utility-scale solar power generation that will be value-accretive to CREIT and its shareholders, especially amid a volatile business environment,” Tan said.
