Report
EUR 88.49
For Business Accounts Only
Citicore Energy REIT is a Philippine REIT with a focus on sustainable infrastructure projects. The initial portfolio will consist of the Clark Solar Power Plant, Armenia Property, Toledo Property, Silay Property, and the Dalayap Property, which had a total appraised valuation of PHP10.9bn (US$214.3m)
In our view, the REIT needs to come at a wider discount to peers, in terms of dividend yield. Its stable income generation from its fixed rent component combined with long tenant tenure is a plus, in comparison to peers. However, the REIT doesn’t exactly have a clear growth path post-IPO. Viewing the deal as a dividend play, in our view, the REIT should offer a yield above its peer average to entice investors.
In this note, we will look at peer comparison and share our thoughts on valuation.
Our previous coverage of the IPO:
Citicore Energy REIT IPO - First of Its Kind Listing in Phils with Stable Income Generation
Citicore Energy REIT IPO
Citicore Energy REIT is looking to raise around US$170m in its Philippines IPO.Citicore Energy REIT is a Philippine REIT with a focus on sustainable infrastructure projects. The initial portfolio will consist of the Clark Solar Power Plant, Armenia Property, Toledo Property, Silay Property, and the Dalayap Property, which had a total appraised valuation of PHP10.9bn (US$214.3m)
In our view, the REIT needs to come at a wider discount to peers, in terms of dividend yield. Its stable income generation from its fixed rent component combined with long tenant tenure is a plus, in comparison to peers. However, the REIT doesn’t exactly have a clear growth path post-IPO. Viewing the deal as a dividend play, in our view, the REIT should offer a yield above its peer average to entice investors.
In this note, we will look at peer comparison and share our thoughts on valuation.
Our previous coverage of the IPO:
Citicore Energy REIT IPO - First of Its Kind Listing in Phils with Stable Income Generation
Underlying
Citicore Energy REIT
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Clarence Chu
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