{"id":326303,"date":"2024-01-05T12:50:36","date_gmt":"2024-01-05T04:50:36","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326303"},"modified":"2024-01-05T12:50:40","modified_gmt":"2024-01-05T04:50:40","slug":"stock-in-focus-citicore-energy-reit-corp-creit-5-jan-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-citicore-energy-reit-corp-creit-5-jan-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Citicore Energy REIT Corp. (CREIT) – 5 Jan 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CREIT<\/td><\/tr>
Company Name<\/strong><\/td>Citicore Energy REIT Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 Jan 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.74<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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CREIT is often grouped with RCR and MREIT as second-tier REITS while AREIT
occupies the top-tier. Even so, we find that CREIT can go head-to-head with AREIT when it comes to communicating its growth strategy and providing shareholders, including potential ones, all the information that they need. This would be the cherry on top of CREIT\u2019s hefty 7.6% dividend yield, and underpins our BUY rating for the stock with a Target Price of P2.74. We also note that if (when) its sponsor CREC pushes through with its IPO this year as planned, this would lengthen the growth runway for CREIT as the infusion of additional funds into CREC would accelerate the development of its projects and add new projects to its pipeline.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

CREIT revises investment criteria<\/h3>\n\n\n\n

CREIT disclosed in its three-year investment strategy that it has revised its investment criteria to remove the clause stating that the company shall invest in underlying real estate of RE projects that have \u201cAchieved successful plant testing and commissioning, with stable offtake contracts for 100% of the power plant\u2019s expected generation output.\u201d The revision will allow CREIT to fold in properties even during construction stage, which will provide an earlier income stream to shareholders. <\/p>\n\n\n\n

Pipeline identified<\/h3>\n\n\n\n

Also included in the three-year investment strategy is a list of projects of CREIT\u2019s sponsor, Citicore Renewable Energy Corp. (CREC), that can potentially be folded into the REIT. This list includes 8 solar power projects with a combined gross installed capacity of 1,583.0-MW which are in ready-to-build\/under construction stage. These are late-stage development projects that are expected to come online within the next year or two. It also lists 12 solar and wind power projects with a combined gross installed capacity of 1,426.8-MW in the advanced development stage. These projects are expected to come online within the next two to three years. All projects have already secured offtake agreements either with Transco under the Green Energy Auction Program, or with private offtakers via privately negotiated deals.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>