Citicore Energy REIT declares robust Q4 dividend

Citicore Energy REIT [CREIT 2.75, up, up 3.8%] [link], the subsidiary of Citicore Renewable Energy Corp. and the REIT arm of the Megawide [MWIDE 3.08 unch] group of companies, declared a Q4/23 dividend of P0.054/share, payable on May 15 to shareholders of record as of April 18. The dividend has an annualized yield of 7.85% (up from 7.38%) based on the previous day’s closing price. The total amount of the dividend is P353 million, which is 106% of the P334 million in reported Q4 distributed income. Relative to CREIT’s IPO price, the dividend increased CREIT’s total stock and dividend return to 24.2%, up from its pre-dividend return of 22.08%.

MB bottom-line: CREIT’s full FY23 of declared dividends is 9% higher than what it distributed in FY22. The Q4 dividend is the company’s highest on record, but it’s a combination of CREIT’s regular Q4 dividend and the full-year distributable income from its variable lease agreements. Last year, CREIT distributed the variable lease income in a special dividend that was declared on the same day as the Q4 dividend; this year, it looks like they’ve combined the two. So while this might be a record declaration, it’s a record that deserves an asterisk and a little bit of special treatment. As far as I can figure, the annualized yield is a little bit misleading since the Q1 through Q3 dividends in 2024 won’t come with any of that variable lease income sweetener baked in. 

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