Philippines: Citicore prices $124 mn IPO, country's first energy REIT

Philippine conglomerates and property firms have tapped the REIT mechanism to monetise assets.

Philippines' Citicore Energy REIT Corp said on Thursday it had priced its initial public offering at 2.55 pesos ($0.05) per share in what is set to be the country's first energy-focused real estate investment trust (REIT) listing.

Philippine conglomerates and property firms have tapped the REIT mechanism to monetise mature assets and generate fresh capital for further expansion. The IPO price, which implies a dividend yield of 7% based on projected 2022 earnings, will "provide more upside to the public investors", Citicore REIT said in a statement. Citicore REIT cut its offer to 2.5 billion shares, including an over-allotment option, compared with 3.2 billion shares prior to bookbuilding. 

The IPO will raise as much as 6.4 billion pesos ($124.45 million), with fresh capital allotted to acquire properties. It is the country's first REIT that sources its income from solar power assets, after the previous five listings had hotels and office space in their portfolio.

Citicore REIT derives its income from a renewable power facility and the lease of land to solar power plant operators. REITs manage real estate assets like office buildings and commercial centres that generate profits, and are attractive to investors seeking regular cash dividends.

The offer period runs between Feb. 2 to 8, followed by its listing on Feb. 17.

(Reporting by Neil Jerome Morales, editing by Ed Davies)