Citicore REIT cuts IPO size, final price

*The renewable energy-centred offering came from CREIT’s parent company, Megawide Construction Corp., owned and founded by Edgar Saavedra.*

MANILA, Philippines — Citicore Energy REIT trimmed the size and final offer price of its real estate investment trust offering, which could make dividends attractive for investors, as one analyst sees it.

In a disclosure sent to the Philippine Stock Exchange on Thursday, the country’s first renewable energy REIT reduced the size of its offering to 2.51 billion common shares from its previously announced 2.8 billion common shares up for sale.

Likewise, Citicore reduced the final share price of its maiden share sale at P2.55 each, lower than what they previously declared P3.15 per share.

CREIT’s initial public offering also includes an option to sell an additional 327.3 million shares, smaller than they previously declared, if there is robust investor demand.

For Luis Limlingan, head of sales at local brokerage Regina Capital, this move could push projected yields up, which could prove enticing for investors.

“Following the planned acquisition of the Bulacan Property and the South Cotabato Property, estimated dividend declaration for this year and next would be P0.18 per share and P0.19 per share, respectively,” he said in a Viber message.

According to Limlingan, the estimated dividend yields from Citicore, mandated by law to distribute 90% of taxable income as dividends, could be at 7% this year and 7.4% by 2023.

The offer period is scheduled between February 2 to 8.

Citicore, an offering from its parent company Megawide Construction Corp, would become the country’s first non-office building REIT once it lists on February 17.

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The article was originally published in Phil Star Global and written by Ramon Royandoyan.