August 22, 2022

SCC, SGP

Back in 2016, SCC and MER had a joint venture of constructing and operating a coal-fired power plant in Batangas which is under the subsidiary of St. Raphael Power Generation Corporation. The agreement however was terminated last 2020. SCC decided to acquire the whole ownership of St. Raphael without MER but the issue back then is that the NGCP has no power transmission line to which the power plant can supposedly connect. NGCP in their defense experienced delays due to right-of-way issues. 

Just a while ago, SCC disclosed that they will intend to push through and construct the said coal-fired power plant. I went through NGCP's Transmission Development Plan 2021 - 2040 and found out that they will push through building a Transmission line to where St. Raphael is located. The expected completion date is around March 2023. That could be a compelling reason why SCC finally decided to continue and build the power plant. 

The said project if completed will further boost SCC's net income. The energy demand is still increasing yet supply remains thin. 60% of our energy mix still uses coal as it is still the most available, cheapest, and most practical source of energy. The Department of Energy suspended building new coal-fired power plants way back in 2020 to give way for renewable energy. SCC however is exempted since the project with St. Raphael has existed before the suspension has been announced. As for SGP, this will be added income for them as well since their transmission line will be utilized.

VREIT

A week ago VREIT declared its first dividend payout. It amounted to 157 million PHP or 0.0210 PHP/sh. As per their disclosed quarter report, this is 2 months' worth of collected rental income. They have a total net income of 802 million PHP for the first half of this year but they are only distributing income from May and June. VREIT was listed around the 2nd week of June but they are generous enough to give as dividends to shareholders the income that was collected from May to June. That being said, if we put an assumption that 0.0210 PHP/sh is worth 2 months of income, and if we multiply that by 6 and divide it at the IPO price of 1.75 PHP/sh, we should get a projected annual dividend yield of 7.2%. The dividend yield however is quite far from the projected 8% to 9%. 

As to the sustainability of these dividends, Villar noted that the community malls are taking advantage of the re-opening of the economy and that the malls and offices in the REIT portfolio are at a 97% occupancy rate. 60% of these tenants are Villar-related businesses such as AllHome and AllDay. VREIT has no debt and is trading below the net asset value of 4.97 PHP/sh.

As to the growth of VREIT, its sponsor VLL has other malls, office buildings, and commercial centers that can possibly be infused later on. However, there is no forward-looking statement on expected asset infusion at the moment.

DDMPR

DDMPR declared their 2nd quarter dividend and fortunately not late this time. Surprisingly, they were able to maintain the dividend income despite the negative outlook on the economy, negative sentiment toward Gaming-Related BPO and POGO tenants, and non-PEZA accredited buildings. The dividend income however is 2% lower than the last but at least it's not as worse as FILRT's 25% drop in dividends. DDMPR was able to maintain a 93% average occupancy rate for the first half of the year higher than the 83% average occupancy rate of Metro Manila. DDMPR still has no debt and is trading below the net asset value of 2.30 PHP/sh.

The sustainability of the dividend has a negative outlook. Around 7% of the lease will or have already expired this 2022. Then by next year, 37% of the lease will expire. Their buildings are not PEZA accredited making it more difficult to find stable tenants. Injap however mentioned in their disclosure that they have felt the buildup of fresh new tenant inquiries in the past few weeks, there are ongoing negotiations and increased activities of the existing office and retail tenants. Injap thinks that many companies are now starting again to expand looking for office spaces. 

As for the growth of DDMPR, the DoubleDragon Tower has been completed and is ready for tenant turnover. There is no official statement on the infusion of the tower to DDMPR yet but as I have seen in their disclosure, it is already making revenue and is being added to DDMPR's overall revenue. The revenue collected from the tower however is not significant enough to increase the dividends. On the other hand, the Ascott-DD Meridian Park is still under construction and is expected to be completed in the year 2024.

August 14, 2022

FILRT

FILRT released a dividend of 0.088 PHP/sh, a 24% decrease from the previous dividend of 0.116 PHP/sh. Comparing the quarterly report to the same quarter a year ago, the collected rental revenue has decreased by 11% and the cost and expenses increased by 7%. The rental collection is lower due to lowered occupancy rate.  Among the tenants, 4% did not renew their lease, 10% are under negotiation, and 86% renewed their leases. The average occupancy rate of FILRT is now at 88%. We have to note here that 91% of FILRT's tenants are within the BPO industry. Many of them are not planning to add more office space in the short term due to work-from-home arrangements. They are taking a wait-and-see attitude before they pursue their expansion plans. The increase in cost and expenses contributed further to the decrease in dividends. Under the cost and expenses, "service and management fees" increased by a whopping 650%, and "taxes and licenses" increased by 111%. There are other costs and expenses as well but the decrease and increase in value are not at a significant level.

Another issue with FILRT is its liabilities. One of its supposedly long-term debts (a bond) is about to mature this 2023. They had to move it as a current liability on the balance sheet. As a result, their financial standing does not look very good. They are not liquid enough to cover their debt and their earnings are not enough to pay for their debt with a high probability of default. The management  is currently thinking of ways to avoid this by issuing a new bond or taking out a new loan to refinance their debt.

FILRT's press release annualized the dividend yield using the first half of the year using the following formula:[0.116 PHP/sh + 0.088 PHP/sh]  x 2 divided by the current trading price then multiply it by 100. That said, the annualized dividend yield is at 6.1%. Using such a formula is not an issue if there is a high probability that FILRT's revenue goes back to the usual levels. We are also not sure whether the declared cost in "taxes and licenses" and "service and management fees" is going to be the usual costs to be seen in the future. Most investors usually use a forward-looking dividend yield by multiplying the latest dividend/sh by 4 divided by the current trading price and then multiplying it by 100. That said, investors are now looking at a 5.3% dividend yield. But of course, those who bought FILRT shares at a higher price in the past have a lower yield today.

Investors are now weighing whether to hold or let go of their shares. The average occupancy rate hasn't increased since the pandemic and no infusion of assets happened since the IPO. The dividend yield for sure is discouraging to look at because there are better REITs out there that are more stable and gives better yields. Looking at FILRT's price chart today, it is now in the oversold levels. Many investors indeed dumped or reduced their shares.

Investors who don't mind the yield will continue to hold or add more shares. Reasons could be that FILRT is trading below the NAV (net asset value) of 9.02 PHP/sh, assets are located in a central business district, buildings are PEZA accredited making it easy to find tenants, and they're banking on the infusion of assets which is expected to happen in the year 2023 to 2024.

MREIT, AREIT, RCR

These 3 REITs so far have increased their dividend payout this quarter with more room to grow. 

MREIT is expected to end this year with at least 1 PHP/sh of annualized dividend which hasn't been achieved as of this quarter. Either we expect an additional infusion of an asset or they will increase the dividend payout in the next few quarters.

RCR has around 400k square meters more to infuse as leasable space in their portfolio. RCR plans to infuse 1 to 2 assets annually as per their 3-year strategy plan. 

AREIT is planning to infuse 6 Cebu-based office buildings this year through a property-for-share swap with ALI. They are just waiting for regulatory approvals for the said transaction. ALI has around 800k square meters of gross leasable space for offices that can be infused to AREIT in the next few years. As per AREIT's investment strategy, they plan to infuse an average of 100k square meters annually and may acquire mall assets depending on economic conditions.

SHLPH

Shell is one of those high-yield dividend stocks during the pre-pandemic. Ever since its IPO 5 years ago, they were having an annualized dividend yield of 10% and below. This is not due to dividend growth but because of price depreciation. They were overvalued at an IPO price of 67 PHP/sh. When earnings came by the quarter, it was not within the expected performance hence valuation has to be lowered and the stock price followed later on. Nevertheless, earnings are still positive and SHLPH continued its dividend payout anyway. SHLPH has a high dividend payout policy of paying out at least 75% of its net income. However, they stopped giving paying dividends during the pandemic due to negative income attributed to lockdowns and travel restrictions.

Now that the economy is re-opening and the President declaring no more lockdowns, SHLPH and other competitors within the same sector are starting to gain positive earnings. With that said, SHLPH is now resuming to pay dividends. They declared dividends a week ago but their net income for the first half of this year is still far away from the pre-pandemic levels. Some investors have recently started buying shares before the earnings go back to the pre-pandemic level. They're banking on high dividend yield and capital appreciation. 

With a 75% dividend payout policy, many investors look at SHLPH for dividends. It is difficult to grow a company that gives more than half of its earnings as dividends. The minimum 75% dividend payout ratio is logical because there is minimal to no growth for SHLPH. They gave almost 100% of their earnings as dividends before the pandemic. They have already expanded to every corner of the country. Their latest innovation is deploying EV (Electric Vehicle) charging stations but that doesn't mean anything to the growth of SHLPH since EV vehicles are not yet common. If it's all about dividends anyway with minimal to no growth, some investors decided to rather invest in preferred shares of SHLPH's competitors such as Petron's PRF3A, PRF3B, PRF2A, and PRF2B.

LTG

During my last writeups with regards to LTG, there were 4 negative sentiments that I have observed that are pulling down LTG despite being a high dividend paying blue-chip stock. LTG somehow started to rally because the problems are being crossed out one at a time.

One of the problems was due to it being politically at risk. Corazon Aquino and Fidel Ramos made attempts before to prove that Lucio Tan's businesses had been secretly owned by Marcos and therefore should be confiscated. Now  no confiscation is going to take place since the Sandiganbayan decided to dismiss the lawsuit seeking to recover Marcos's wealth.

The second problem was the indirect link to PAL. PNB, one of LTG's holding companies is the biggest creditor of PAL. A year ago PAL filed for bankruptcy and is currently doing debt restructuring. That being said, if PAL fails to pay its debt to PNB, this gives a blow to LTG's overall financial standing. PAL released their quarterly report a week ago and behold, their net income is now in the positive territory. If things go smoothly and the re-opening of the economy won't get disrupted, then they will be able to pay for the debt.

The third problem is the rising prices of commodities. The expense for tobacco production, distillery, brewery, construction materials, and the like are all going to increase. This implies that they will pass these costs to their consumers by increasing the prices of their products and services. As an effect, it was forecasted that their sales will get negatively affected.  LTG released its quarterly report a week ago and it came out the opposite. The tobacco, banking, distillery, brewery, real estate, and milling businesses are all up in sales. They earned a total of 15 billion PHP for the first half of the year which is 313% higher than the first half of last year. 50% of the income alone came from the Tobacco business and 41% from the banking business.

The last problem is the unstable family relationship that is affecting the business. Lucio Tan is micro-managing his empire. He appoints a family member at one point and then suddenly changes it to another for some undisclosed reason. It might not be a bad thing but Lucio Tan is already old and nobody knows what his empire will gonna look like once he passes away. One thing for sure is that there are traces of a Family Feud that has been happening in Lucio Tan's family.

DMC, SCC

DMC and SCC released their quarterly report a week ago. As expected, their earnings are within the estimated performance. Coal is still a much-needed commodity for power production and global prices have not yet gone on the downtrend. Moreover, since they are exporting their coal product, they are benefitting from the high foreign exchange rate. Power sales have increased as well due to elevated prices and higher plant availability. As per the annual stockholder meeting, both DMC and SCC are eyeing another special round of dividends within the year.

SCC earned as much as 11 billion PHP for the 2nd quarter alone. 80% came from coal sales and around 20% from power sales. 

DMC on the other hand earned as much as 9 billion for the 2nd quarter alone. 65% came from SCC, 15% came from real estate, and the rest are from other holdings such as Maynilad Water, Mining, Power, and others. 

Looking at DMC's financial standing, it is being carried by SCC. This implies that buying DMC shares is an alternative way to buying SCC. Many investors find SCC's current trading price within or above its fair value hence they buy DMC due to its cheaper valuation.

The coal business is looking good for SCC but precautions have to be made. They reported that their is reduced production due to higher rainfall and lower shipments to China because they are prioritizing buying coal from Russia.

TEL

TEL declared its second tranche of dividends this year. Two dividends have been declared, one of which is a regular dividend of 48 PHP/sh and the other is a special dividend of 28 PHP/sh. As they have disclosed in the past, they will be selling their towers and 9 billion PHP of the proceeds are going to be given as special dividends. The first round of selling their tower has materialized hence the special dividend of around 6 billion PHP. This implies that around 3 billion PHP or 13.9 PHP/sh is the expected next special dividend after doing the second round of selling their other towers. 

A week ago, Cignal Cable Corporation (a subsidiary of PLDT) going to purchase 39% shares of Sky Cable Corporation. In exchange, Sky Cable will be able to expand its coverage, offerings, and services through TEL's network infrastructure. Cignal Cable is a satellite provider and that being said, Sky Cable will be able to expand its service programs even up to remote areas. This transaction might not increase the dividends of TEL but since it is an equity investment then it should strengthen TEL's financial statement if Sky Cable will do good. By 2030, Cignal will buy the remaining 61% shares of Sky Cable. Cignal Cable Corporation is under MediaQuest Holding, a subsidiary of PLDT. TEL as of this writing has around 10 billion PHP invested in MediaQuest in equities.

Sky Cable owner, the Lopezes, is going to use the proceeds to buy shares of TV5 Network. Many speculate that they will revive their ABS-CBN programs via TV5 which will be streamed using TEL's network infrastructure.

SGP

DICT (Department of Information and Communication Technology) continues to push the national broadband program. The DICT's strategy for speeding the rollout of fiber optic cable and wireless technology to increase internet speeds is outlined in the national broadband plan. DICT is going to lease NGCP's infrastructure and they plan to locate some of their facilities within NGCP's facilities. Through NGCP's power transmission lines laid out around the Philippines, DICT can take advantage of rolling out its cables as well. This would be beneficial for SGP since this is an added income from the lease.

MER, GLO

GLO has previously disclosed that they had plans to sell at least 7,000 of their towers. A week ago MIESCOR Infrastructure Development Corp, a subsidiary of MER, is set to acquire 2,100 of the towers and GLO will lease them back for 100k per tower per month. GLO is selling its towers and will be using the proceeds to refinance its debt and for network expansion. Later on, they will issue a stock rights offering for additional funding. GLO is avoiding taking out a loan for funding in a high-interest rate environment. Similar to TEL, selling towers would be an advantage since this will reduce their maintenance cost, and probably not a good idea to share their towers with competitors which they are required to do so due to the imposed common tower policy. Anyhow, this will be good for MER as well since it's going to be an additional recurring income from the lease.

Besides MIESCOR, another subsidiary of MER called Spectrum has partnered with PLDT to power up their center in the Visayas. Spectrum is gaining traction in the solar business due to the positive sentiment toward renewable energy. I've been writing about them in the past in which they partnered with companies like Ajinamoto Corporation, WLCON, and Avon PH for solar installation. In return, these companies are allowed to negotiate their electricity rates with their preferred supplier under the Retail Competition and Open Access law. 

MER has released its quarterly report and they have already surpassed pre-pandemic levels in earnings. They are giving away 50% of the net income as dividends to shareholders. Take note though that despite the positive contribution of MER's subsidiaries like Spectrum and MIESCOR, they only account for less than 5% of the overall revenue. More than 90% of MER's revenue still comes from the power distribution business.

August 1, 2022

PIFITA

The President rolled out the top 19 priority bills he would be looking at in his term. One of which is the Passive Income and Financial Intermediary Taxation Act (PIFITA). Under this bill, there will be a single rate of 15% tax on passive income regardless of currency, maturity, issuer, and other differentiating factors. This implies that the usual 20% tax of interest earned from savings or bond investments will go down to 15%. On the other hand, the usual 10% tax on dividends will go up to 15%. 

For dividend investors, this news gives them time to re-evaluate their portfolios. Dividend investors who want dividends with capital appreciation (of course this carries risk) will stick to dividend stocks. Meanwhile, dividend investors who want dividends but preserved capital will have to think about divesting and moving to fixed-income securities. 

PIFITA will probably give a clear decision for investors who are torn between investing in Preferred shares vs. bonds. Many investors who seek capital preservation jump to Preferred shares due to the fact that dividends are taxed 10% while the share price remains relatively stable until redeemed. With PIFITA, it shows that bonds are a better place to put in their funds.

DivY (Dividend Yield Index)

Last weekend, PSE released the top 20 stocks that will comprise the DivY index which will take effect this August. RLC, RRHI, SECB, and URC have been replaced by MREIT, DDMPR, FILRT, and RCR.

The complete list: AEV, AP, AREIT, BPI, DDMPR, DMC, DNL, FILRT, GLO, GMA7, ICT, LTG, MBT, MER, MPI, MREIT, NIKL, RCR, SCC, and TEL.

Much of the weight of the DivY index did not change. 50% of the weight is composed of MBT, TEL, ICT, BPI, and MER. There is a high probability that CREIT and VREIT will soon be added on the next index rebalancing date.

As of this writing, I am still not aware of a fund of any investing institution that tracks the DivY index. That being said, these REITs being added to the DivY might not significantly affect the share price for now.

ALFM REIF

ALFM is planning to release a Real Estate Income Fund (REIF) this August. This is a Mutual Fund in which they will invest their client's funds to Real Estate that produces a stable stream of income. This will include local/global REIT shares, fixed-income (e.g., bonds), and preferred/common shares from Real Estate companies. Since this is an income fund, investors are expected to receive consistent dividend payouts. There will be a management fee of 1.25% per annum and fitting for investors who do not have the time and/or skill to manage their investment portfolio.

As of this writing, no facts sheet has been released yet but it should be something to look upon. Once it is out, we should be able to see the projected dividend yield, frequency of dividend payout, and the basket of securities in the fund along with their weight in the portfolio. 

There is no indication yet whether this will be offered in GCash as well similar to the peso-denominated ALFM GMIF (Global Multi-Asset Income Fund) that gives monthly dividend payouts as well. Since many of ALFM's Fund are offered in GCash, then there's a high probability that it will be offered after a few months from now.

This Mutual Fund gives positive sentiment toward our local REITs in the country. ALFM will be one of the investing institutions that will give volatility to the share prices of REITs.

PLC

During the SONA (State of the Nation Address), the President vowed to not impose any more lockdowns since our economy cannot afford it. That being said, we should expect the travel and tourism sector to slowly open. PLC was able to earn and maintain dividend payouts even during the lockdowns. With no more lockdowns, this should give a positive sentiment for casinos to do business. Analysts however are projecting casino pre-pandemic profitability by 2026 since it takes time for player confidence to return. For PLC, 4 years might be long to wait for PLC share price to go back to pre-pandemic levels. Dividend investors, however, might not see the long waiting time as a problem as long as the 80% dividend payout ratio policy is maintained. 

A week ago PLC released its 2nd quarter report. They earned a net income of approximately 800 million PHP for the first six months of this year. This is 20% higher than the 500 million PHP they earned for the first six months a year ago. The increase is mostly due to lowered costs and expenses and not due to rising demand for a casino.

Things might be looking good for PLC but the sustainability of the high-yield dividend payout is at risk. Their balance sheet shows that they have around 700 million PHP left as free cash where they usually take out dividends for their investors. Using the 80% dividend payout policy, 560 million PHP can be given as dividends or a dividend of 0.02 PHP/sh. At the current trading price of 0.40 PHP/sh, this is a 5% dividend yield which is almost half of the usual 10% dividend yield. Of course, we have 2 more quarters to go and what we want to see is a continuous increase in free cash flow. 

The reason why PLC was able to sustain a high-yield dividend even during the pandemic was that they were using the free cash that it saved before the pandemic. They've been giving at least 1 billion PHP as dividends from the free cash yet they have had difficulty achieving a 1 billion PHP net income since the pandemic. That being said, the free cash is slowly depleting not unless they reach the usual 2 billion to 3 billion PHP net income that they earn during the pandemic. The next 2 quarters and the next few years are critical for PLC's high dividend payout to sustain.

LTG

2 months ago I wrote a few reasons as to why LTG continues to depreciate despite having good fundamentals and a blue-chip stock. Such reasons include but not limited to family relations affecting the business, high inflation, politically at risk, and its indirect link to PAL. 

A week ago the Sandiganbayan decided to dismiss the lawsuit seeking to recover Marcos's wealth. For context, Lucio Tan is a crony of Ferdinand Marcos in the past. Lucio Tan received tax breaks giving his businesses an edge against rivals. Back in 2007, Bong Bong Marcos testified that his father Ferdinand Marcos and Lucio Tan were business associates and that a significant part of Lucio's Wealth is owned by Marcos. Corazon Aquino and Fidel Ramos made attempts before to prove that Lucio Tan's businesses had been secretly owned by Marcos and therefore should be confiscated. Now that no confiscation is going to take place, I guess that's one problem crossed out for LTG.

PNX

A week ago BDO made a press release with regards to Dennis Uy's Clark project debt going default if not paid on time. The press release spread negative sentiment to all companies held by Dennis such as C, DITO, PHR, and PNX. All these companies have huge debts as well and Dennis going default to on any of his debts implies that he can't pay all his other debts. Fortunately, Dennis was able to pay it on time and he even sold 45% of Malampaya to Razon. Still, this isn't good news.

That being said, this is a risk for PNX4 and PNX3B preferred shareholders. Both preferred shares are now trading below the IPO price. They give a dividend yield of at least 8% at IPO price and are now higher since they are trading below the IPO price. The redemption date of PNX3B was supposed to be in the year 2020. On the other hand, PNX4 is expected to be redeemed by the end of this year. Preferred shares are redeemed at the IPO price thus it is an instant gain for investors who bought the shares below the IPO price. If ever these shares are not going to be redeemed on the supposed maturity date, their yield steps up. If it does, PNX4 will have a forward-looking yield of 15% at the IPO price of 1,000 PHP/sh. 

The risk for PNX4 and PNX3B is in the capability of the company to continuously pay dividends and redeem the shares. A 15% dividend yield might not be sustainable due to weak earnings. Preferred shares are also not mandated to pay dividends on time. If PNX debts default, preferred shareholders will only be paid if there is excess cash during the liquidation of assets. The banks for whom PNX borrowed money will be paid first. The issue is the balance sheet shows that PNX assets cannot cover their entire liabilities. This implies that there is a high probability that preferred shares cannot be redeemed. We have to take note that preferred shares are not formally categorized as liabilities on the balance sheet.

Historically, I've never seen any preferred shares that failed in the PSE. Some companies issue new preferred shares/bonds to pay and redeem their old preferred shares to avoid the step-up of dividends. For sure PNX can't offer bonds because they have a bad credit rating. We'll have to see the course of action for PNX in the next coming months.

DDMPR

Besides being added to the DivY Index, DDMPR is also added to PSE's Property and Midcap Index. Recognition is good but this might not add volatility to DDMPR's share price since there are no funds that I know of that track specifically the DivY, Midcap, and Property index. Colliers Philippines, one of the respected companies in terms of research in the real estate industry, reported POGOs are slowly coming back for office spaces in the Bay Area and in Makati. Huge transactions for office spaces has been recorded in the area. If true, then this would probably be good timing for DDMPR in the Bay Area since 40% of their tenants are about to expire in the year 2023. As of this writing, DDMPR's buildings are not yet PEZA accredited thus it is difficult to entice BPO tenants. As of now, a bulk of their tenants are in the Gaming Related BPO sector linked to POGOs.

RCR, TEL, GLO

During the pandemic, the IT-BPM revenue increased year on year and exceeded the target revenue for the year 2022. The IT-BPM sector is anticipated to expand by 10-15% annually because digitalization is one of the priorities of the President as per the State of the Nation Address (SONA). Analysts forecast the BPO sector will continue to grow until 2030. That being said, RCR is seen to remain resilient with a high occupancy rate since most of its BPO tenants are in the IT-BPM sector.

With regards to TEL and GLO, their services will be heavily relied on by the BPO industry. This gives TEL and GLO some sort of defensive stance against high inflation and a high-interest rate environment that we're going through. The timing of TEL to activate its additional undersea cable system to boost international capacity is right on time. TEL is positioning itself to be the leader in data hub and data centers which is going to be heavily relied upon by BPOs. TEL plans to launch two more undersea cable systems in the next two years.

FILRT

FLI, the parent company of FILRT plans to infuse 3  Cebu towers into FILRT's portfolio once they become profitable. One of the towers is already 70% occupied by BPO locators while the other 2 towers are seen to be completed in the year 2023. The combined leasable space of these 3 towers totals approximately 40,000 sq.m.

Last February of this year, they made a disclosure that they will be infusing two office buildings totaling almost 70,000 sq.m. of gross leasable space within the year. Now that we have already halved the year, no new disclosure with regard to the infusion has been released.

CREIT

CREIT's parent CREC has been expanding lately such as partnering with ACEN to energize a solar plant in Pampanga, making a partnership with companies like Toyota, Shell, JE Hydro Bio Energy Corporation to supply them energy, and more to follow. Oliver Tan, CREIT's CEO mentioned that CREC's larger capacity and wider customer base will soon benefit CREIT as most of these assets are to be infused into CREIT in the next 5 years. Excess energy sales from their tenants to these customers are given as special dividends to CREIT shareholders annually. 

Currently, CREC has 3 predeveloped solar farms, another 3 solar farms for site acquisition, and 1 run-of-river hydro being constructed. All of these are expected to be completed by 2023 and be infused into CREIT.

SCC

SCC has been added back to the PSE index replacing SECB. This is mostly due to the global energy crisis and the demand for coal as a source of energy despite renewable energy being the future. For how long SCC will stay in the index is unknown but coal is still trading near an all-time high and is forecasted to go higher. China, the world's largest coal consumer is planning to lift its ban to import coal from Australia. The ban gave an opportunity for SCC ever since the pandemic. Even so, coal prices are seen to remain elevated due to the war in Ukraine. The European Union is cutting Russia for their energy needs and some of them are going back to using coal as a source of energy. India, the second largest coal importer has still high demands for coal due to recent power shortages.

SSS, SSS Provident Fund, GSIS

A few weeks ago many companies have released their top 100 shareholders. Within the list, I look for stocks where the government is involved. The involvement of the government means they would do their part to protect their investment and their having large shares over a company gives them significant voting rights to steer the future of the company. I as an investor ride the dividend stocks where the government is involved because after all, I believe a part of the dividend income is what they distribute to our fellow pensioners. This is not investment advice but something I would like to share to add conviction to one's decision when buying the stock.

SSS Holdings and Ownership: DMC (1.92%), CLI (5.84%), GLO (2.04%), GMA7 (0.06%), MER (0.04%), MWC (7.24%), NIKL (2.05%), SCC (3.31%), TEL (0.69%), AREIT (0.28%), DDMPR (0.49%), FILRT (0.16%), RCR (0.03%), VREIT (1.57%), AP (1.79%)

SSS Providend Fund Holdings and Ownership: DMC (0.07%), GLO (0.04%), MWC (0.26%), SCC (0.01%), TEL (0.03%), AREIT (0.34%), DDMPR (0.12%), FILRT (0.07%), VREIT (0.19%), AP (0.07%)

GSIS Holdings and Ownership: DMC (1.50%), GLO (0.95%), GMA7 (0.17%), LTG (1.37%), MER (1.41%), SCC (1.38%), SGP (0.16%), TEL (2.25%), AREIT (2.23%), DDMPR (1.25%), FILRT (1.46%), MREIT (0.44%), RCR (0.78%), VREIT (0.76%), AP (1.19%)