SAAVEDRA-LED Citicore Renewable Energy Corp. (CREC) has moved its planned P7.9-billion initial public offering (IPO) to June.
The offer period is scheduled from May 27 to May 31, with the tentative listing and start of trading on the Philippine Stock Exchange, Inc. on June 7, according to the company’s preliminary prospectus.
CREC initially scheduled its IPO listing for May 31, with an offer period from May 20 to May 24.
It is set to offer up to 1.79 billion common shares at a maximum price of P3.99 apiece, including an additional 267.86 million shares for overallotment.
The company trimmed its planned IPO size to P7.9 billion from P12.9 billion. The move came after SM Investments Corp. invested P5 billion in its subsidiary Citicore Energy REIT Corp. (CREIT).
CREIT is the Philippines’ first REIT listing with a focus on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the Philippines.
CREIT saw its attributable net income for the first quarter increase by 18% to P359.28 million from P304.96 million a year ago.
“The increase is mainly related to full take up of lease revenues of the company’s lease contracts on its newly acquired properties in Lumbangan and Luntal, Batangas and Arayat, Pampanga and Pangasinan…,” the company said in its quarterly report released on Tuesday.
The company added that this was “offset by the accrual and recognition of the interest expense for the period for the first and second coupon payments of the P4.5 billion green bond issuance.”
CREIT’s gross revenues rose by 26% to P472.84 million driven by its newly acquired parcels of land under CREIT’s green asset portfolio.
It said that this has translated to 24% growth in earnings before interest, taxes, depreciation and amortization.
“This solidifies CREIT’s position as the largest REIT (real estate investment trust) landlord for renewable energy developers and operators,” the company.
For the January-to-March period, the company’s gross profit increased by 27% to P446.78 million due to the “expansion of leasing activities arising from various acquisitions of freehold assets out of the green bond’s proceeds.”
Gross expenses rose by 7.86% to P26.07 million from P24.17 million previously.
CREIT said it has declared dividends amounting to P0.049 per share, up 4% a year ago. This will be payable on July 9 to shareholders on record as of June 13, it said.
The P0.049 per share dividend equates to an annualized yield of 7%, based on May 10 closing price of P2.82, the company said.
“We have remained consistent in providing investors a sustainable and attractive dividend paying REIT instrument from recurring but growing lease revenues, with asset acquisition in support of Citicore Renewables’ project pipeline,” CREIT President and Chief Executive Officer Oliver Y. Tan said.
“This also demonstrates the resiliency of our REIT investment strategy to keep on adding value-accretive assets, effectively CREIT mirroring the growth roadmap of its sponsor CREC,” he added.
CREIT is the Philippines’ first REIT listing with a focus on renewable energy. It specializes in owning sustainable infrastructure projects, including income-generating renewable energy properties across the Philippines.
Its parent company and sponsor, Citicore Renewable Energy Corp. (CREC) is set to list its shares on the Philippine Stock Exchange on May 31, aiming to raise as much as P7.9 billion.
CREC has over 5 gigawatts (GW) of projects in its pipeline which are in varying stages of development with its first GW well underway. — Sheldeen Joy Talavera
