Citicore Energy REIT Corp (CREIT), Philippines’ first renewable energy real estate investment trust (REIT) has been named the ‘Best REIT Portfolio Management’ at the International Finance Award 2022. Debuting in the Philippine Stock Exchange on 22 February 2022, the company is the first Philippine REIT to have a fully clean and green asset portfolio. But what makes CREIT stand out and deserve the Best REIT Portfolio Management – Renewable Energy (Philippines) award from the International Finance Awards goes beyond these attributes.
The Citicore Group promotes symbiotic relationships between the industrial and agricultural sectors to benefit communities. In support of this cause, the Citicore Group has pioneered the Agro-Solar concept in the Philippines. This allows the co-existence of solar power generation with high-value agricultural crop farming, allowing access to sustainable energy while helping augment the small farmers’ income. This also ensures that host communities around the group’s solar plants are not displaced by the race for renewable energy but rather empowered as they remain integral to the country’s economic growth and progress.
Race to renewable
Originating from a country where fossil fuel is still a major source of energy, CREIT’s sponsor – Citicore Renewable Energy Corp. (CREC) – is a proud proponent of renewable energy since its incorporation in 2018. As the second largest solar player in the Philippines with a 205MWdc attributable generation capacity, the Citicore group supports clean and green power generation towards a net zero carbon future.
CREIT has a clear path of sustainable and long-term growth. CREIT’s roadmap includes the infusion of additional assets from CREC’s 1,500MWdc pipeline in the next five years – providing CREIT up to six times growth and ensuring continued business growth and increased shareholder value. CREIT’s properties – located in high irradiation areas and close to key business districts – are currently leased out to solar operator tenants with a solid track record of solar power generation with various blue-chip companies as its off-take customer. The overall business landscape in the Philippines supports Citicore’s race to renewable with its mandate to Distribution Utility companies to ramp up the sourcing of their energy supply from renewable energy sources to 35% by 2030.
CREIT’s platform for sustainable and renewable power generation is an essential segment. It is more resilient to economic cycles and has low exposure to vacancy risks. Unlike commercial REITs with an average weighted average lease expiry (WALE) of five to seven years, CREIT enjoys a stable occupancy rate with tenants’ lease terms averaging 20 years.
Gold standard in governance
CREIT has a solid track record of fund and property management. Behind the Citicore Group is a team of experienced industry professionals and personalities, backed and supported by a fund management and a property management company. Moreover, CREIT has been given the highest rating by Cicero Green, Norway’s foremost climate research company, ascertaining that all of CREIT’s processes and framework are in line with sustainable and environmentally sound practices.
CREIT has the combination of a strong and environmentally friendly portfolio that promotes the coexistence of industry and agriculture. The company has a clear path for long-term growth backed by solid and experienced management, providing an attractive and valuable investment proposition and superior returns to shareholders and investors.