By Alena Mae S. Flores – April 20, 2022, 7:25 pm
from manilastandard.net

Citicore Energy REIT Corp., the country’s first energy REIT, reported a net income of P226 million in 2021, or more than double the previous year’s P104 million as the energy sector remained resilient despite the pandemic.

CREIT said energy firms showed a strong performance brought about by the sustained high demand for electricity as a result of remote work arrangements and work-from-home set-up.

The company reported audited gross revenues of P352 million last year, 95 percent of which was attributed to the sale of electricity from the Clark Solar Plant and the balance from land lease revenues coming from Citicore Solar Tarlac 1 and 2, which covered November and December.

Earnings before interest, taxes, depreciation and appreciation rose 24 percent to P282 million, translating into an EBITDA margin of 80 percent.

CREIT said this power revenue stream, however, would no longer apply to its financials starting 2022 as the service contract for Clark Solar Plant, as approved by the Department of Energy, was transferred to Citicore Renewable Energy Corp. effective Dec. 25, 2021 as part of CREIT’s REIT formation transaction.

“Beginning January 2022, instead of electricity sales, CREIT’s revenues will primarily consist of a more guaranteed, stable lease revenues with upside coming from variable lease revenues,” said CREIT president and chief executive Oliver Tan.

“As a result, CREIT is well positioned to deliver a recurring lease income stream, translating to higher distributable income and dividends to our shareholders moving forward,” said Tan.

CREIT tapped the capital markets through its initial public offering on Feb. 22, closing at P2.84 per share from an IPO offer price of P2.55 per share.

CREIT went beyond the existing commercial property REITs in the market and offered the first energy-themed REIT.

“We are proud that CREIT’s maiden offering, and we are very grateful and thankful to the investing public for embracing this first of its kind REIT variety and the Year of the Tiger’s first IPO,” Tan said.

CREIT declared on March 9 cash dividends of P0.035 per share representing its 2021 performance to stockholders on record as of March 28, and payable on April 4.

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