{"id":327397,"date":"2024-04-05T02:24:07","date_gmt":"2024-04-04T18:24:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327397"},"modified":"2024-08-27T00:33:07","modified_gmt":"2024-08-26T16:33:07","slug":"stock-in-focus-citicore-energy-reit-corp-creit-5-apr-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-citicore-energy-reit-corp-creit-5-apr-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Citicore Energy REIT Corp. (CREIT) – 5 Apr 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 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.93<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Although we see CREIT as one of the premium REITs alongside AREIT given its continuous acquisitions of properties, we note that upside is very limited given our Target Price of P2.93 vs its previous close of P2.88. We therefore update our rating for CREIT to HOLD.<\/p>\n\n\n\n

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

The king of REITs<\/h3>\n\n\n\n

CREIT registered substantial earnings of P1.4-Billion in 2023, up 11.6% year-o-year (YoY) from 2022\u2019s P1.25-Billion after its REIT sponsor pushed through with a fresh infusion of several rental assets, adding 5.12-Mn sqm of revenue accretive assets.<\/p>\n\n\n\n

Checking all the boxes<\/h3>\n\n\n\n

We first point out that occupancy has consistently remained at 100% the entire year. Couple this with their dividends as a % of distributable income being much higher at 106% vs the mandate for REITs of 90%. This makes the REIT even more attractive to investors. Alongside this, we note that the company has managed to grow its total leasable area by 4.3x since its IPO two years ago. The combination of all these factors solidifies our stance on CREIT\u2019s quality.<\/p>\n\n\n\n

SM\u2019s Investment<\/h3>\n\n\n\n

SM recently acquired 28.79% of CREIT last week from CREC and Citicore Solar Tarlac 1 for a total of P5-Billion which translates to a purchase price of P2.5634\/share. We see this as a beneficial move for CREC in the form of capital recycling which would eventually trickle down to CREIT in the form of acquisition of the properties. We see this move as a \u201csign of approval\u201d of SM towards CREIT\u2019s capability to operate.<\/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>