CREIT Q1 profit surges 12 times on hefty rental earnings

 

Megawide affiliate Citicore Energy REIT Corp. (CREIT) reported a net income of P300 million from January to March, a 12-fold jump from the same period last year.

The country’s first energy REIT said iit began to realize rental income from its renewable assets leased out to solar plant operators during the period.

Gross revenues soared 470 percent to P332 million, largely comprising lease income from various solar plant companies. EBITDA jumped 49 percent to P322 million.

“With an established list of tenants operating in a cycle-resilient industry, CREIT is optimistic in generating recurring green sources of lease revenues, translating to increasing distributable income and attractive dividend yields to our shareholders,” said Oliver Y. Tan, CREIT president and CEO.

Citicore’s aggressive growth pipeline and commitment to support CREIT over the long-term is expected to sustain and even surpass the company’s first quarter performance, Tan said.

He said CREIT would continue beefing up its current asset portfolio to hit its goal of 1,500 megawatts by 2025.

SOURCE:Bilyonaryo

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CREIT declares maiden dividends

Citicore Energy REIT Corp. the country’s first energy REIT, declared its first dividend of 35 centavos per share, just two weeks after listing on the stock exchange.

The dividends represent 102 percent of CREIT’s distributable income for 2021.

“The board of CREIT approved the cash dividend to show CREIT’s commitment to investors as a sustainable and attractive dividend paying instrument. This maiden dividend also reflects our confidence in the business model and its long-term prospects, as effective yields remain above existing benchmarks,” said company president and CEO Oliver Tan.

Based on the REIT plan, CREIT is projected to post a net distributable income of P226.9 million in 2021, of which 100 percent will be paid out as dividends to eligible shareholders.

For 2022 and 2023, the company is expected to distribute 107 percent and 106 percent of its projected distributable income, generating a dividend yield of 7 percent and 7.4 percent, respectively, based on the IPO price of P2.55/share.

CREIT’s earnings for 2021 largely came from the sale of electricity of its Clark Solar plant and the balance comprising seven percent of total earnings came from the two-months lease income from two leased properties in Tarlac.

SOURCE: Bilyonaryo

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CREIT moves debut after ‘voluminous transactions’

CITICORE Energy REIT Corp. (CREIT) deferred its listing at the Philippine Stock Exchange (PSE) due to “voluminous transactions arising from the huge number of retail and individual investors.”

In a statement on Wednesday, the company said the strong investor demand for the P6.4-billion initial public offering (IPO) of the country’s first energy-focused real estate investment trust (REIT) slowed its processing time.

CREIT’s market debut was initially scheduled Feb. 17. It has yet to confirm a new listing date as of press time.

“We are grateful to the overwhelming reception of investors, owing also to the extensive market education conducted, which further increased appreciation for REITs as a new asset class,” CREIT President and Chief Executive Officer Oliver Y. Tan said.

The company said all shares allotted for its institutional, trading participants, and local small investors (LSIs) tranches were oversubscribed.

“In as much as the underwriters wanted to accommodate all interested investors, the strong orders for CREIT’s IPO from local and international institutions and more than 5,000 retail investors simply outnumbered the total shares offered to the public,” Unicapital, Inc. First Vice-President for Corporate Finance Pamela Louise Q. Victoriano said.

“The underwriters nonetheless exerted efforts to distribute the shares as widely as possible to a broad investor base to hopefully result to better liquidity and more active trading,” she added.

CREIT said the local small investors tranche of the offer was oversubscribed by 124.09%. The company received a demand of 270.745 million shares for 218.182 million shares allocated for the LSI tranche.

“For the LSI investors who were not able to participate in the country’s first energy REIT or received partial allocations, rest assured that refunds for those who placed and paid for their orders but were not allocated are being promptly processed by the Underwriters and the Receiving Agent,” Mr. Tan said.

CREIT sold 2.509 billion shares for P2.55 apiece. Based on projected earnings, the company is expected to have a dividend yield of 7% in 2022 and 7.4% in 2023.

The company said it is looking to implement a dividend payout of at least 95% of its distributable income for the preceding year.

SOURCE: BusinessWorld

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CREIT: PH’s first energy REIT gets greenlight from PSE to proceed with P10B IPO

Megawide Construction Corp.’s sister company Citicore Energy REIT Corp. (CREIT) has received approval from the Philippine Stock Exchange’s listing committee, clearing the last major hurdle for its initial public offering.

Led by its president and CEO Oliver Tan, CREIT aims to raise as much as P10.1 billion from an offering of up to 1.047 billion primary shares and 1.742 billion secondary shares at a maximum price of P3.15 per share. The company has also set aside 418.34 million shares to cover the overallotment option in case of strong demand.

The final offer price will be known on January 26 while the offering has been scheduled on February 2 to 8 with the listing tentatively set for February 17.

Tan said CREIT has a unique value differentiation, with a green asset portfolio anchored on investing in and for the future.

“This business model, we believe, is cycle-resistant as solar power generation is an essential industry, further supported by government programs, and has a clear plan for long-term growth. With the search for attractive returns, alongside a strong and effective ESG advocacy as criteria for a sound market investment, CREIT comes in as a practical alternative,” Tan said.

Proceeds from the IPO will be used to acquire properties in Bulacan and South Cotabato, which will be leased to solar power plants of Citicore subsidiaries.

 Citicore Group is looking at building 1,500 megawatts of solar power capacity in the next five years.

Unicapital Inc. and BDO Capital & Investment Corp. are the joint global coordinators for CREIT’s IPO.

Unicapital is lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp..

CIMB Investment Bank Bhd and CLSA Ltd., meanwhile, have been tapped as international bookrunners for the issue.

SOURCE: Bilyonaryo

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Ed Saavedra turns to capital market to fund RE projects: Citicore REIT’s P10B IPO gets SEC nod

A real estate investment trust (REIT) unit of Citicore Renewable Energy Corp. has been cleared to launch its initial public offering estimated to fetch as much P10 billion.

Backed by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1, Citicore Energy REIT (CREIT) will offer to the public as much as 3.206 billion shares comprising 1.047 primary shares, 1.741 billion secondary shares and an oversubscription option of up to 418.34 billion shares, at a maximum price of P3.15 each

CREIT, an affiiate of bilyonaryo Edgar Saavedra’s Megawide Corp., expects to net up to P3.17 billion from the primary offer, which will be used for the acquisition of properties in Bulacan and South Cotabato.

Proceeds from the secondary offer could amount to P6.61 billion, assuming the overallotment option is fully exercised. These funds shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.

The offer period will run from November 26 to December 3 in time with the listing of the shares scheduled on December 13.

CREIT aims to focus on income-generating renewable energy real estate properties, including land and properties used for harnessing power. The company owns the Clark solar power plant operating on a land leased from the Clark Development Corp. for a period of 25 years or until 2039.

It has mandated Unicapital Inc. and BDO Capital & Investment Corp. as joint global coordinators for the offer.

Unicapital will also serve as lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp. while Investment & Capital Corporation of the Philippines will act as participating underwriter.

The company also engaged CIMB Investment Bank Bhd and CLSA Ltd. as international bookrunners.

SOURCE: Bilyonaryo

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