The drop wiped out nearly P500 million in market value, bringing PREIT’s capitalization down to about P5.8 billion.
What is PREIT?
PREIT, listed on December 15, 2022, is a Villar-backed real estate investment trust that holds land and power plant assets in Siquijor and Camotes Island, Cebu.
The Department of Energy (DOE) said SIPCOR’s permit was revoked by the Energy Regulatory Commission amid persistent blackouts, according to a report by ABS-CBN News.
SIPCOR, incorporated in 2011, operates power plants with a combined 12,870 kilowatts of capacity serving the Candanay Sur and Lazi grids in Siquijor, PREIT's annual report showed.
Similar issues are under review at Camotes Island Power Generation Corp. (CAMPCOR) in Cebu, another Villar-owned facility.
AP Securities advises investors to sell
AP Securities head of research Alfred Benjamin R. Garcia said SIPCOR’s shutdown threatens PREIT’s dividend capacity, with the Siquijor unit contributing P148.7 million, nearly half of lease income in the first half of 2025.
“We strongly advise anyone with PREIT to sell,” Garcia said, adding that CAMPCOR, which accounts for the other half of PREIT’s revenue, is also under DOE investigation.
Big picture
Villar’s power venture has become the billionaire’s latest headache as regulators scrutinize his business empire.
The government is also reviewing PrimeWater Infrastructure Corp. over service concerns apart from an investigation into misleading disclosures by his trillion-peso property firm, Villar Land Holdings.
—Edited by Miguel R. Camus
