PREIT posts P252M net income, explores expansion despite regulatory hurdles

PREIT Reports P252M Net Income, Explores Expansion Amid Regulatory Challenges

PREMIERE Island Power REIT Corp. (PREIT) has announced a net income of P252.11 million for the first half of 2025, despite facing regulatory hurdles that may impact its expansion plans.

First-Half Financial Performance

In its quarterly report, PREIT revealed that first-half revenues remained steady at P304.4 million, comprised entirely of rental income from power plants in Siquijor and Cebu. While cost of rentals increased by 8.6% to P45.4 million due to higher depreciation and management fees, operating expenses more than doubled to P3.2 million as a result of higher professional and administrative fees.

Financial Highlights

Notable financial highlights include

Cash decreased to P300,000 from P900,000 due to settlement of payables and advances
Trade and other receivables declined to P569.1 million from P889.5 million
Net property and equipment decreased to P929.6 million from P961.5 million due to depreciation
Liabilities increased, with trade and other payables rising to P151.2 million from P138.6 million

Equity and Dividend

Equity declined to P9.2 billion as a dividend declaration of P289.4 million outpaced net income of P252.1 million generated during the period.

Expansion Plans

Despite regulatory hurdles, PREIT remains committed to expanding its asset base through strategic acquisitions in prime locations. The company's portfolio consists of land, buildings, and power plant assets used by Siquijor Island Power Corp. (Sipcor) and Camotes Island Power Corp. (Campcor) to operate heavy fuel oil-fired facilities with a combined installed capacity of 21.2 megawatts.

Regulatory Challenges

The Energy Regulatory Commission's (ERC) order to revoke Sipcor's provisional authorities to operate, citing regulatory compliance issues, has raised concerns about the company's expansion plans. However, PREIT assured investors that this development is not expected to materially affect its distributable income as lease payments are guaranteed under contract regardless of operational status.

Outlook

As PREIT continues to explore opportunities for growth and expansion, it remains essential to navigate regulatory challenges effectively. With a strong track record of generating net income and a commitment to expanding its asset base, the company is well-positioned to overcome these hurdles and continue to thrive in the years ahead.

In conclusion, PREIT's financial performance and commitment to expansion position the company for continued success despite regulatory challenges.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.