CREIT Q1 div unchanged y/y

Citicore Renewable Energy REIT [CREIT 3.20 unch] [link] declared a Q1 dividend of P0.049/share, payable on July 4 to shareholders of record as of June 9. The quarterly dividend is unchanged from what it delivered in Q1/24, and down 11% from the P0.055/share Q4/24 dividend declared by CREIT, which contained extra distributable income from CREIT’s profit-sharing leases. CREIT reported P302.8 million in Q1 distributable income, but the total amount of the dividend is P320.7 million, resulting in a 105.9% distribution rate.

 MB BOTTOM-LINE:   Some are going to see the quarter-on-quarter drop and think that something’s wrong, but that’s just an artifact caused by how CREIT handles the extra income it earns on its profit-sharing leases. That extra income is added to the Q4 dividend. If we eliminate the extra income from the Q4 dividends, this is the 8th consecutive quarter of P0.049/share dividends. Zero dividend growth over two years. During that time, it raised money through a bond offering, and its parent company sold a massive stake of CREIT to SM Investments [SM], but it hasn’t initiated (much less completed) any asset injections to improve CREIT’s dividend. According to the associated press release,  “[g]rowth trajectory of CREIT will mirror its sponsor CREC, providing visibility on asset infusion opportunities.” I’m not sure why that statement has a “ok, but from now on” type of feel to it, because I was of the understanding that there was a pipeline of injectable assets that CREIT could take on that the ownership team already intended to push down from CREC to CREIT. Did CREC’s IPO for some reason stall this conveyor belt of asset infusions? As a CREIT investor, I appreciate the dependability of CREIT’s model, but I am growing impatient with the group’s seeming lack of urgency with respect to keeping this growth cycle between CREC and CREIT moving. Now that the other commercial REITs have started to recover from the implosion of the commercial leasing sector through expansion and diversification, the “never goes down a centavo” approach from CREIT holds less and less value to me over time. I want growth.