{"id":326964,"date":"2024-02-29T10:42:24","date_gmt":"2024-02-29T02:42:24","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=326964"},"modified":"2024-02-29T10:42:26","modified_gmt":"2024-02-29T02:42:26","slug":"stock-in-focus-citicore-energy-reit-corp-creit-29-feb-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-citicore-energy-reit-corp-creit-29-feb-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Citicore Energy REIT Corp. (CREIT) – 29 Feb 2024 by Regina Capital Development Corp."},"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>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Feb 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 3.63<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our buy recommendation towards CREIT with a Target Price of P3.63\/share. With the prevailing market price, the stock has a ~35% upside potential.<\/p>\n\n\n\n

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

In its latest earnings report, Citicore Energy REIT Corporation (CREIT) Net Income (NI) surged by 28.18% year-on-year (y\/y) to P391 million, mainly attributed to its topline performance, which rose by +52.18% y\/y, fueled by the firm\u2019s strategic land acquisitions in Batangas, Pampanga, and Pangasinan. With the addition of the three acquired properties in 2023, we forecasted a P1.8 billion net income for CREIT in 2024. This brings us to our projected EPS at 0.28 for 2024, while projected ROE is at 26.64% in 2024.<\/p>\n\n\n\n

Presently, CREIT has 10 leasable properties as of 3Q 2023, with the highest weighted average lease expiry (WALE) of 21.7 years among its industry peers. This suggests a lowered vulnerability to revenue fluctuations from vacancies, positioning CREIT as a resilient and appealing REIT investment as this means the company has the
ability to maintain consistent dividend payouts.<\/p>\n\n\n\n

CREIT’s plans for further land acquisitions to support CREC’s initiative of installing 1GW of solar capacity annually, alongside the prospective IPO of CREC, are poised to bolster investor confidence in CREIT. Thus, we see a sustained EPS trajectory and heightened margins backed by low operational costs until 2025.<\/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>