CREIT's Green Asset Portfolio Expansion Drives 31% Revenue Growth

Citicore Energy REIT Corp. (CREIT), the country's first and largest renewable energy REIT, posted remarkable growth in revenue in 2023, totaling Php 1.8 billion.

The company's addition of 5.12 million square meters of land and 100% occupancy throughout the year underscores its commitment to renewable energy and sustainable growth. CREIT's success continues to power a First-World Philippines with pure renewable energy. | Photo: CREIT

This represents a 31% increase from the previous year, showcasing the success of CREIT's strategy in expanding its green asset portfolio.

The company's net income also rose by 12% to reach Php 1.4 billion, underscoring its robust financial performance. The strong financial results were driven by a combination of factors, including a guaranteed base lease structure and the addition of new properties to CREIT's portfolio.

During its second year as a REIT, CREIT expanded its landholdings by acquiring seven parcels of land, totaling 5.12 million square meters.

This expansion led to a 4.3-fold growth in CREIT's portfolio since its Initial Public Offering (IPO) in 2022. Additionally, CREIT's assets enjoyed 100% occupancy throughout the year, ensuring a stable and consistent source of income.

CREIT's President and CEO, Oliver Tan, commented on the company's impressive performance, stating, "The higher income we generated as a renewable energy REIT allows us to continuously increase value to our shareholders by declaring dividends beyond the mandated 90% of distributable income."

CREIT declared a full-year 2023 dividend of Php 0.199/share, a notable increase from the previous year's Php 0.183/share, translating to a 7.8% dividend yield based on the December 29, 2023 closing price of Php 2.56/share.

The company's commitment to shareholder value is further demonstrated by its payout of 106% of the Company's distributable income for the second consecutive year, well above the required 90% as stipulated in the REIT Law.

This achievement led to CREIT's inclusion in the PSE Dividend Yield Index (PSE DivY Index) in February 2023.

CREIT's growth prospects received a significant boost when Philippine conglomerate SM Investments Corporation (SMIC) acquired a 28.79% interest in the company on March 27, 2024, providing an additional Php 5.0 billion in capital.

This investment reaffirms CREIT's potential and reinforces its position in the renewable energy sector.

The proceeds from the sale will contribute to the further development of Citicore Renewable Energy Corp.'s (CREC) solar power projects across eight sites nationwide, with a goal of contributing approximately 1.0GW of solar energy capacity per year as part of its 5-year pipeline rollout roadmap.

This expansion is expected to fuel CREIT's growth and reinforce its status as the leading renewable energy landlord in the Philippines.

CREIT's continued focus on expanding its green asset portfolio, driven by its principal Citicore Renewable Energy Corporation, positions the company as a leader in the renewable energy revolution, contributing to a more sustainable future for the Philippines.