Premiere Island Power REIT’s profit falls 4% due to higher costs

VILLAR-led Premiere Island Power REIT Corp. (PREIT) saw its second-quarter net profit decline 4% to P127.74 million from P133.12 million last year due to higher rental costs.

Revenue for the second quarter remained stable at P152.21 million, while rental expenses rose 19.7% to P20.88 million from P17.44 million last year, PREIT said in a filing with the regulator.

For the first half, PREIT saw a 4.6% decline in net profit to P255.27 million from P267.44 million a year ago.

Sales from January to June were unchanged at P304.42 million, while rental expenses rose 20% to P41.76 million from P34.89 million in 2023.

“(Higher rental costs) were mainly attributable to the depreciation of generation assets amounting to P29.1 million and property taxes amounting to P3.6 million. Depreciation in 2024 increased by P2.8 million due to the increase in property valuation for the year 2023,” PREIT said.

PREIT is the real estate investment trust platform of the energy and infrastructure groups of Villar-led Prime Asset Ventures, Inc. The company’s sponsors are SI Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR).

SIPCOR operates bunker-fired generating units on Siquijor Island, while CAMPCOR operates two power plants on Camotes Island, Cebu.

On Thursday, PREIT shares rose 1.05% or two centavos to P1.92 each. – Revin Mikhael D. Ochave