Stock Commentary

Citicore Energy REIT declares P0.051/share combined div

Merkado Barkada
Citicore Energy REIT declares P0.051/share combined div

Citicore Energy REIT [CREIT 2.47 0.8%] [link], the Megawide Group’s renewable energy REIT, declared a special dividend of P0.007/share, and a Q4 regular dividend of P0.044/share, for a combined dividend of P0.051/share.

Both dividends will be paid on May 15, to shareholders of record as of April 21.

The Q4 regular dividend comes out of CREIT’s Q4 distributable income, and the special dividend represents CREIT’s share in the FY22 profits of the renewable energy power plants that lease its lands, as due to CREIT under the various lease agreements.

The regular dividend is CREIT’s 4th consecutive dividend at that level, and the special dividend is the first that CREIT has been able to issue from the funds distributed to it from those profit sharing agreements.

This brings CREIT’s total FY22 dividends to P0.183/share, which is 1.7% higher than the P0.18/share that CREIT projected in its Final REIT Plan. The difference was in the higher income earned through the profit sharing clauses.

Relative to CREIT’s IPO price of P2.55/share, CREIT delivered dividends with a  yield of 7.1% (vs. 7.0% projected). Assuming the same performance in 2023, that would represent a projected yield of 7.47% based on the pre-announcement closing price of P2.45/share.


I’m glad to be able to draw a line under a full cycle of CREIT dividends, because for some reason, that annual special dividend from the profit sharing clauses was something that people didn’t easily wrap their heads around.

And from a PR (and financial) perspective, it’s nice to see that the provision surprised to the upside and delivered (marginally) more value than was originally projected.

While a potential IPO of CREIT’s parent company, Citicore Renewable Energy Corporation (CREC) doesn’t automatically increase CREIT’s stock price, it does provide a thicker stable of potential injections for the Megawide Group to pass down through this monetization channel.

Keep in mind, though, that nothing obligates the Megawide Group, or CREC in particular, to make CREC transfer any of those projects to CREIT.

This lack of certainty is why the track history of the group is so important when it comes to selecting a REIT.

The Megawide Group has consistently delivered on its promises when it comes to CREIT.



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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.




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