{"id":327234,"date":"2024-03-22T01:10:28","date_gmt":"2024-03-21T17:10:28","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327234"},"modified":"2024-08-27T00:33:15","modified_gmt":"2024-08-26T16:33:15","slug":"stock-in-focus-citicore-energy-reit-corp-creit-22-march-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-citicore-energy-reit-corp-creit-22-march-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Citicore Energy REIT Corp. (CREIT) – 22 March 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>22 March 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.93<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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CREIT has continually shown what it looks like when a REIT actually does what it\u2019s supposed to do, as evidenced by its revenue accretive land acquisitions alongside a reasonable yield. We not only reiterate our BUY rating for CREIT, we also believe that this warrants an upgrade from our current Target Price of P2.93.<\/p>\n\n\n\n

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

Dividend bonanza for CREIT holders<\/h3>\n\n\n\n

CREIT declared a cash dividend of P0.054\/share from its Q4 distributable earnings, 10.2% higher than Q3\u2019s P0.049\/share. The latest dividend declaration brings CREIT\u2019s 2023 total to P0.199\/share, which translates to a yield of 7.2% as of the closing price of P2.75. The company\u2019s metrics also remain the highest among all listed REITS, with WALE at 21.5 years and occupancy at 100%. Most importantly, CREIT has the second-highest total returns since listing (capital appreciation plus cash dividends) after AREIT.<\/p>\n\n\n\n

Recent acquisitions boost CREIT\u2019s distributable income<\/h3>\n\n\n\n

Management attributed the 4Q 2023 increase in DPS to a boost in lease revenues from new parcels of land acquired using proceeds from the company\u2019s ASEAN Green Bond issuance last year. <\/p>\n\n\n\n

Moving forward, we see a longer runway of potential asset infusions from CREIT\u2019s sponsor, CREC, which has over 5GW of solar projects in its development pipeline. A portion of these projects will eventually be acquired by CREIT as well, further contributing revenues to the company which will trickle down to the shareholders.<\/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>