3 days ago
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Citicore Energy REIT [CREIT 3.14, down 0.3%] [link] declared a Q4/24 dividend of P0.055, payable on May 21 to shareholders of record as of April 24. The dividend has an annualized yield of 7.00% based on the previous closing price, which is significantly larger than CREIT's pre-dividend annualized yield of 6.26%. The total amount of the dividend is P360 million, which is 106% of the P340 million in distributable income that CREIT reported for the quarter. Relative to CREIT's IPO price, the dividend increased CREIT's total stock and dividend return to 47.02%, up from its pre-dividend total return of 44.86%. For the year, CREIT distributed 106.5% of the P1.3 billion in distributable income it earned.
MB bottom-line: I love CREIT, but as a CREIT investor, I think this stock is overdue for growth. While this quarterly dividend is the largest in its history, it’s only 1.9% bigger than CREIT’s “big” Q4 dividend in 2023, and the regular quarterly dividends have been completely flat at P0.049/share since Q2/23. It has tons of debt space that it could tap to purchase projects from its sponsor parent, Citicore Renewable Energy [CREC 3.68, up 0.8%], that wouldn’t adjust the public float. The stock price is up almost 27% over the past two years, which is the best organic performance of any REIT on the exchange. PREIT is up 49% over that same period, but it’s just my opinion that synthetic demand has caused PREIT to melt upwards. I don’t think anybody in the world (especially Manny Villar) would accept PREIT shares as payment for anything at this valuation.
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